Bandwidth (NASDAQ:BAND) Shares Gap Down Following Insider Selling

Bandwidth Inc. (NASDAQ:BAND)’s share price gapped down before the market opened on Tuesday following insider selling activity. The stock had previously closed at $21.11, but opened at $20.25. Bandwidth shares last traded at $19.50, with a volume of 131,515 shares.

Specifically, CEO David A. Morken sold 15,410 shares of the firm’s stock in a transaction on Friday, November 29th. The stock was sold at an average price of $21.26, for a total transaction of $327,616.60. Following the completion of the sale, the chief executive officer now directly owns 101,821 shares of the company’s stock, valued at $2,164,714.46. This trade represents a 13.14 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Daryl Raiford sold 10,389 shares of the business’s stock in a transaction dated Friday, November 29th. The stock was sold at an average price of $21.26, for a total value of $220,870.14. Following the sale, the chief financial officer now owns 87,220 shares in the company, valued at approximately $1,854,297.20. The trade was a 10.64 % decrease in their position. The disclosure for this sale can be found here. In other news, CFO Daryl Raiford sold 4,371 shares of Bandwidth stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $20.70, for a total value of $90,479.70. Following the transaction, the chief financial officer now directly owns 93,451 shares of the company’s stock, valued at $1,934,435.70. This trade represents a 4.47 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Wall Street Analysts Forecast Growth

BAND has been the subject of a number of recent analyst reports. JMP Securities reaffirmed a “market outperform” rating and issued a $36.00 price objective on shares of Bandwidth in a research note on Tuesday, August 27th. Needham & Company LLC reissued a “hold” rating on shares of Bandwidth in a research note on Friday, November 1st. Finally, Robert W. Baird lifted their target price on Bandwidth from $19.00 to $22.00 and gave the company a “neutral” rating in a research note on Friday, November 1st. One analyst has rated the stock with a sell rating, two have issued a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, Bandwidth currently has an average rating of “Hold” and an average price target of $28.33.

Bandwidth Trading Down 7.6 %

The company has a fifty day simple moving average of $18.66 and a two-hundred day simple moving average of $18.30. The company has a market capitalization of $536.45 million, a P/E ratio of -20.97 and a beta of 1.51. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.29 and a quick ratio of 1.29.

Bandwidth (NASDAQ:BAND) last posted its earnings results on Thursday, October 31st. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.11. Bandwidth had a negative return on equity of 0.89% and a negative net margin of 2.23%. The firm had revenue of $193.90 million during the quarter, compared to analyst estimates of $182.05 million. During the same period in the previous year, the company earned $0.03 EPS. The company’s revenue for the quarter was up 27.6% on a year-over-year basis. On average, analysts forecast that Bandwidth Inc. will post 0.08 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of BAND. Point72 Asset Management L.P. lifted its position in Bandwidth by 411.1% during the 2nd quarter. Point72 Asset Management L.P. now owns 597,933 shares of the company’s stock worth $10,093,000 after acquiring an additional 480,933 shares during the last quarter. Acadian Asset Management LLC boosted its stake in Bandwidth by 79.8% during the 2nd quarter. Acadian Asset Management LLC now owns 613,612 shares of the company’s stock valued at $10,353,000 after purchasing an additional 272,309 shares during the period. Assenagon Asset Management S.A. grew its holdings in Bandwidth by 185.5% in the 3rd quarter. Assenagon Asset Management S.A. now owns 341,921 shares of the company’s stock valued at $5,987,000 after buying an additional 222,142 shares during the last quarter. FMR LLC increased its position in Bandwidth by 70.3% in the 3rd quarter. FMR LLC now owns 371,215 shares of the company’s stock worth $6,500,000 after buying an additional 153,223 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of Bandwidth by 35.0% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 324,199 shares of the company’s stock valued at $5,677,000 after acquiring an additional 83,979 shares during the period. 68.53% of the stock is currently owned by institutional investors and hedge funds.

About Bandwidth

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth’s APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.