AAPL

TSLA

AMZN

META

AMD

NVDA

PEP

COST

ADBE

GOOG

AMGN

HON

INTC

INTU

NFLX

ADP

SBUX

MRNA

Markets

CCOI

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

March 22, 2026 — 12:37 pm EDT

Written by

Jonathan Ponciano for

The Motley Fool->

Key Points

- Ulysses Management exited its entire stake in Cogent Communications last quarter by selling 335,982 shares.

- The shares were previously worth about $12.9 million.

- Prior to the sale, this position accounted for 0.9% of the fund’s AUM as of the prior quarter.

- 10 stocks we like better than Cogent Communications ›

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

What happened

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

What else to know

- Top five holdings after the filing:- NASDAQ:MSFT: $69.53 million (18.2% of AUM)

- NASDAQ:AMZN: $59.44 million (15.6% of AUM)

- NASDAQ:HSIC: $50.25 million (13.2% of AUM)

- NYSE:BALL: $29.13 million (7.6% of AUM)

- NASDAQ:TRMB: $27.01 million (7.1% of AUM)

- As of Friday, shares of Cogent Communications were priced at $18.05, down 74% over the past year and well underperforming the S&P 500, which is instead up about 15% in the same period.

Company overview

MetricValueRevenue (TTM)$975.8 millionNet income (TTM)($182.2 million)Dividend yield11.4%Price (as of Friday)$18.05Company snapshot

- Cogent Communications provides high-speed internet access, private network services, and data center colocation across multiple continents.

- It generates revenue primarily through recurring fees for on-net and off-net connectivity, as well as colocation services supporting bandwidth-intensive organizations.

- The firm targets small and medium-sized businesses, communications service providers, and other professional and enterprise clients requiring robust network infrastructure.

Cogent Communications is a global provider of internet access and network services, operating a substantial fiber infrastructure and data center footprint. The company leverages its extensive on-net building connections and carrier relationships to deliver reliable, high-capacity solutions to enterprise and service provider customers. Its focus on recurring service revenue and broad geographic reach underpin its competitive positioning in the telecommunications sector.

What this transaction means for investors

Based on top holdings, this portfolio focuses on solid players like Microsoft and Amazon, along with reliable firms in healthcare and industrials. And with that in mind, moving away from a struggling telecom company signals a clear preference for businesses that offer better visibility on earnings and stronger pricing power in the current landscape.

Cogent’s strategy has been to provide low-cost bandwidth at scale, but as competition heats up and prices drop, that edge can vanish quickly, and the significant decline in the stock over the past year highlights doubts about the company's capacity to leverage its network into stable, profitable growth.

For long-term investors, the key message isn’t simply to steer clear of beaten-down stocks. It’s vital to assess whether the foundational thesis remains solid. In this scenario, capital is focused on companies with more reliable demand and lower execution risk.

Should you buy stock in Cogent Communications right now?

Before you buy stock in Cogent Communications, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cogent Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,179!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,058,743!*

Now, it’s worth noting Stock Advisor’s total average return is 898% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of March 22, 2026.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The M