This Internet Infrastructure Stock Plunged 72% in a Year, so Why Did an Investor Buy Up $12 Million?

1 day ago 8

Jonathan Ponciano, The Motley Fool

Sun, March 15, 2026 astatine 10:01 AM CDT 3 min read

On February 17, 2026, MIG Capital disclosed a caller presumption successful Cogent Communications (NASDAQ:CCOI), acquiring 569,220 shares worthy $12.27 cardinal astatine quarter’s end.

According to an SEC filing dated February 17, 2026, MIG Capital initiated a caller presumption successful Cogent Communications, purchasing 569,220 shares. The quarter-end worth of the presumption accrued by $12.27 million.

This represents a caller presumption for MIG Capital, accounting for 2.08% of reportable assets nether absorption arsenic of December 31, 2025.
Top holdings aft the filing:
- NASDAQ:META: $52.45 cardinal (8.9% of AUM)
- NASDAQ:DXCM: $40.19 cardinal (6.8% of AUM)
- NASDAQ:SHC: $34.65 cardinal (5.9% of AUM)
- NASDAQ:MSFT: $34.25 cardinal (5.8% of AUM)
- NASDAQ:CELH: $33.93 cardinal (5.8% of AUM)
As of Friday, shares of Cogent Communications were priced astatine $18.80, down a staggering 72% implicit the past twelvemonth and good underperforming the S&P 500’s astir 20% summation successful the aforesaid period.

Metric

Value

Revenue (TTM)	$975.8 million
Net income (TTM)	($182.2 million)
Dividend yield	11%
Price (as of Friday)	$26.46

Cogent Communications provides high-speed net access, backstage web services, and information halfway colocation crossed aggregate continents.
The steadfast generates gross chiefly done recurring work contracts for bandwidth, web connectivity, and colocation facilities.
It serves tiny and medium-sized businesses, communications work providers, and bandwidth-intensive organizations.

Cogent Communications operates a planetary web delivering internet, backstage networking, and information halfway services to commercialized clients. The institution leverages its extended infrastructure of information centers and connections to thousands of buildings to connection reliable, high-capacity connectivity solutions.

Sharp sell-offs often animate immoderate investors to instrumentality contrarian bets, and Cogent Communications has been a large laggard implicit the past year, with shares down astir 72% portion the broader S&P 500 gained astir 20%. That benignant of divergence tends to pull investors looking for situations wherever sentiment whitethorn person swung excessively far.

Cogent’s latest net showed work gross of $240.5 million, down somewhat from $241.9 cardinal successful the 3rd quarter. Like galore infrastructure-heavy telecom businesses, Cogent faces unit from indebtedness costs and integration challenges tied to web expansion, but the semipermanent request representation for net capableness remains intact. Plus, the steadfast pays an 11% dividend, which translated to 4 quarterly payments totaling $3.05 per stock past year.

Within the broader portfolio, the caller presumption is comparatively humble astatine conscionable implicit 2% of assets, particularly compared with larger holdings specified arsenic Meta, DexCom, and Microsoft. Ultimately, it seems similar that benignant of positioning suggests a measured stake connected a beaten-down infrastructure supplier alternatively than a precocious condemnation halfway holding.

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