After a 65% Slide, One Fund Clears Out This Internet Infrastructure Stock Entirely

2 hours ago 2

Jonathan Ponciano, The Motley Fool

Sun, February 1, 2026 astatine 5:08 PM CST 4 min read

Taylor Frigon Capital Management afloat exited its presumption successful Cogent Communications Holdings (NASDAQ:CCOI) successful the 4th quarter, selling 73,271 shares worthy astir $2.81 million.

According to an SEC filing dated January 23, Taylor Frigon Capital Management LLC sold its full involvement successful Communications Holdings (NASDAQ:CCOI), reducing its holdings by 73,271 shares. The quarter-end presumption worth successful Cogent Communications Holdings declined by $2.81 million.

Top holdings aft the filing:

NASDAQ:ALAB: $4.34 cardinal (2.2% of AUM)
NASDAQ:CRDO: $4.34 cardinal (2.2% of AUM)
NASDAQ:MDB: $3.81 cardinal (1.9% of AUM)
NASDAQ:MPWR: $3.71 cardinal (1.9% of AUM)
NASDAQ:TSEM: $3.49 cardinal (1.8% of AUM)

As of January 23, shares of Cogent Communications Holdings were priced astatine $24.29, down a staggering 65.4% implicit the anterior twelvemonth and vastly underperforming the S&P 500’s astir 14% summation successful the aforesaid period.

Metric

Value

Revenue (TTM)	$987.53 million
Net income (TTM)	($194.71 million)
Dividend yield	12.6%
Price (as of January 23, 2026)	$24.29

Cogent Communications provides high-speed net access, backstage web services, and information halfway colocation crossed aggregate continents, with gross chiefly from connectivity and web solutions.
The institution operates a network-centric concern model, generating income done recurring work contracts and colocation fees for bandwidth-intensive organizations.
It serves tiny and medium-sized businesses, communications work providers, and enterprises requiring reliable, high-capacity information connectivity.

Cogent Communications Holdings is simply a planetary supplier of net entree and web services, operating 54 information centers and connecting thousands of commercialized buildings. The institution leverages its extended web infrastructure to present scalable, high-availability solutions for bandwidth-intensive clients. Its absorption connected recurring work gross and wide geographic scope underpins its competitory presumption successful the telecommunications sector.

Portfolio exits are seldom astir 1 atrocious quarter. They usually bespeak a increasing mismatch betwixt what a concern demands from investors and what a portfolio is designed to tolerate. That hostility is beforehand and halfway here. This portfolio’s apical holdings skew toward semiconductors, software, and infrastructure names wherever superior strength is rewarded by standard and accelerating margins. A capital-heavy web relation with uneven currency procreation progressively sits extracurricular that framework.

Cogent’s latest results showed advancement successful pockets. Wavelength gross jumped sharply twelvemonth implicit year, and EBITDA grew meaningfully, with margins expanding to conscionable implicit 20% successful the 3rd quarter. But halfway work gross slipped sequentially, operating currency travel remained thin, and the banal kept sliding. A 65% diminution implicit the past twelvemonth reflects much than sentiment. It reflects capitalist skepticism that incremental maturation volition construe cleanly into durable escaped currency flow.

Against the fund’s remaining holdings, which thin toward businesses with clearer operating leverage and secular request tailwinds, Cogent stands retired for the incorrect reasons. Ultimately, beardown networks bash not automatically marque beardown stocks, and erstwhile superior needs enactment precocious and currency conversion lags, adjacent improving metrics tin neglect to support shareholder value--making this exit look little similar capitulation and much similar discipline.