Is Cogent Communications Group, Inc. (NASDAQ:CCOI) a good investment?
To the average investor, there are many metrics market participants can use to analyze stocks. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outclass the broader indices by a solid margin (see just how much).
Equally as useful, optimistic insider trading activity is another way to analyze the financial markets. As the old adage goes: there are lots of stimuli for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).
Thus, let’s discuss the newest info about Cogent Communications Group, Inc. (NASDAQ:CCOI).
How are hedge funds trading Cogent Communications Group, Inc. (NASDAQ:CCOI)?
At Q2’s end, a total of 14 of the hedge funds we track were long in this stock, a change of -7% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes considerably.
According to our 13F database, Josh Resnick’s Jericho Capital Asset Management had the biggest position in Cogent Communications Group, Inc. (NASDAQ:CCOI), worth close to $39.8 million, comprising 2.8% of its total 13F portfolio. Sitting at the No. 2 spot is Spencer M. Waxman of Shannon River Fund Management, with a $34 million position; the fund has 4.1% of its 13F portfolio invested in the stock. Other peers that hold long positions include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.
As Cogent Communications Group, Inc. (NASDAQ:CCOI) has witnessed bearish sentiment from upper-tier hedge fund managers, it’s easy to see that there is a sect of money managers that elected to cut their full holdings in Q1. Interestingly, Drew Cupps’s Cupps Capital Management sold off the largest stake of the “upper crust” of funds we track, worth about $8.3 million in stock. Charles Davidson’s fund, Wexford Capital, also said goodbye to its stock, about $0.8 million worth. These transactions are important to note, as total hedge fund interest dropped by 1 funds in Q1.
What have insiders been doing with Cogent Communications Group, Inc. (NASDAQ:CCOI)?
Insider buying is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, Cogent Communications Group, Inc. (NASDAQ:CCOI) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Cogent Communications Group, Inc. (NASDAQ:CCOI). These stocks are Neustar Inc (NYSE:NSR), Premiere Global Services, Inc. (NYSE:PGI), Telecom Argentina S.A. (ADR) (NYSE:TEO), Vonage Holdings Corp. (NYSE:VG), and Oi SA (ADR) (NYSE:OIBR). This group of stocks are the members of the diversified communication services industry and their market caps are similar to CCOI’s market cap.