Why a Full Exit From Cogent Communications Amid a 74% Stock Drop Could Matter for Investors

2 hours ago 2

Jonathan Ponciano, The Motley Fool

Sun, March 22, 2026 astatine 11:37 AM CDT 3 min read

On February 17, 2026, Ulysses Management disclosed successful a Securities and Exchange Commission filing that it sold retired its presumption successful Cogent Communications (NASDAQ:CCOI).

According to a Securities and Exchange Commission filing dated February 17, 2026, Ulysses Management wholly sold its presumption successful Cogent Communications, offloading 335,982 shares. The fund’s quarter-end valuation for this involvement dropped by $12.88 million.

Top 5 holdings aft the filing:
- NASDAQ:MSFT: $69.53 cardinal (18.2% of AUM)
- NASDAQ:AMZN: $59.44 cardinal (15.6% of AUM)
- NASDAQ:HSIC: $50.25 cardinal (13.2% of AUM)
- NYSE:BALL: $29.13 cardinal (7.6% of AUM)
- NASDAQ:TRMB: $27.01 cardinal (7.1% of AUM)
As of Friday, shares of Cogent Communications were priced astatine $18.05, down 74% implicit the past twelvemonth and good underperforming the S&P 500, which is alternatively up astir 15% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$975.8 million
Net income (TTM)	($182.2 million)
Dividend yield	11.4%
Price (as of Friday)	$18.05

Cogent Communications provides high-speed net access, backstage web services, and information halfway colocation crossed aggregate continents.
It generates gross chiefly done recurring fees for on-net and off-net connectivity, arsenic good arsenic colocation services supporting bandwidth-intensive organizations.
The steadfast targets tiny and medium-sized businesses, communications work providers, and different nonrecreational and endeavor clients requiring robust web infrastructure.

Cogent Communications is simply a planetary supplier of net entree and web services, operating a important fibre infrastructure and information halfway footprint. The institution leverages its extended on-net gathering connections and bearer relationships to present reliable, high-capacity solutions to endeavor and work supplier customers. Its absorption connected recurring work gross and wide geographic scope underpin its competitory positioning successful the telecommunications sector.

Based connected apical holdings, this portfolio focuses connected coagulated players similar Microsoft and Amazon, on with reliable firms successful healthcare and industrials. And with that successful mind, moving distant from a struggling telecom institution signals a wide penchant for businesses that connection amended visibility connected net and stronger pricing powerfulness successful the existent landscape.

Cogent’s strategy has been to supply low-cost bandwidth astatine scale, but arsenic contention heats up and prices drop, that borderline tin vanish quickly, and the important diminution successful the banal implicit the past twelvemonth highlights doubts astir the company's capableness to leverage its web into stable, profitable growth.

For semipermanent investors, the cardinal connection isn’t simply to steer wide of beaten-down stocks. It’s captious to measure whether the foundational thesis remains solid. In this scenario, superior is focused connected companies with much reliable request and little execution risk.

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