This Internet Infrastructure Stock Plunged 72% in a Year, so Why Did an Investor Buy Up $12 Million?
Key Points
MIG Capital bought up 569,220 shares of Cogent Communications in the fourth quarter.
The quarter-end position value rose by $12.27 million, reflecting the new trade.
The new CCOI stake places it outside MIG Capital's top five holdings.
- 10 stocks we like better than Cogent Communications ›
On February 17, 2026, MIG Capital disclosed a new position in Cogent Communications (NASDAQ:CCOI), acquiring 569,220 shares worth $12.27 million at quarter’s end.
What happened
According to an SEC filing dated February 17, 2026, MIG Capital initiated a new position in Cogent Communications, purchasing 569,220 shares. The quarter-end value of the position increased by $12.27 million.
What else to know
- This represents a new position for MIG Capital, accounting for 2.08% of reportable assets under management as of December 31, 2025.
- Top holdings after the filing:
- NASDAQ:META: $52.45 million (8.9% of AUM)
- NASDAQ:DXCM: $40.19 million (6.8% of AUM)
- NASDAQ:SHC: $34.65 million (5.9% of AUM)
- NASDAQ:MSFT: $34.25 million (5.8% of AUM)
- NASDAQ:CELH: $33.93 million (5.8% of AUM)
- As of Friday, shares of Cogent Communications were priced at $18.80, down a staggering 72% over the past year and well underperforming the S&P 500’s roughly 20% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $975.8 million |
| Net income (TTM) | ($182.2 million) |
| Dividend yield | 11% |
| Price (as of Friday) | $26.46 |
Company snapshot
- Cogent Communications provides high-speed internet access, private network services, and data center colocation across multiple continents.
- The firm generates revenue primarily through recurring service contracts for bandwidth, network connectivity, and colocation facilities.
- It serves small and medium-sized businesses, communications service providers, and bandwidth-intensive organizations.
Cogent Communications operates a global network delivering internet, private networking, and data center services to commercial clients. The company leverages its extensive infrastructure of data centers and connections to thousands of buildings to offer reliable, high-capacity connectivity solutions.
What this transaction means for investors
Sharp sell-offs often inspire some investors to take contrarian bets, and Cogent Communications has been a big laggard over the past year, with shares down roughly 72% while the broader S&P 500 gained about 20%. That type of divergence tends to attract investors looking for situations where sentiment may have swung too far.
Cogent’s latest earnings showed service revenue of $240.5 million, down slightly from $241.9 million in the third quarter. Like many infrastructure-heavy telecom businesses, Cogent faces pressure from debt costs and integration challenges tied to network expansion, but the long-term demand picture for internet capacity remains intact. Plus, the firm pays an 11% dividend, which translated to four quarterly payments totaling $3.05 per share last year.
Within the broader portfolio, the new position is relatively modest at just over 2% of assets, especially compared with larger holdings such as Meta, DexCom, and Microsoft. Ultimately, it seems like that type of positioning suggests a measured bet on a beaten-down infrastructure provider rather than a high conviction core holding.
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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% 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 15, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius, Meta Platforms, and Microsoft. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.
Recommended Articles
