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

Bandwidth Inc. (NASDAQ:BAND) 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 traded.

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

Analysts Set New Price Targets

Several brokerages have recently weighed in on BAND. Needham & Company LLC reiterated a “hold” rating on shares of Bandwidth in a research report on Friday, November 1st. JMP Securities reiterated a “market outperform” rating and issued a $36.00 target price on shares of Bandwidth in a research note on Tuesday, August 27th. Finally, Robert W. Baird boosted their price target on shares of Bandwidth from $19.00 to $22.00 and gave the company a “neutral” rating in a research report on Friday, November 1st. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $28.33.

Bandwidth Trading Down 3.9 %

The company has a debt-to-equity ratio of 0.83, a current ratio of 1.29 and a quick ratio of 1.29. The stock has a 50 day moving average of $18.71 and a 200 day moving average of $18.29. The firm has a market cap of $558.18 million, a P/E ratio of -21.82 and a beta of 1.51.

Bandwidth (NASDAQ:BAND) last announced its quarterly earnings data on Thursday, October 31st. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates 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 company had revenue of $193.90 million for the quarter, compared to analysts’ expectations of $182.05 million. During the same period last year, the firm posted $0.03 EPS. Bandwidth’s revenue for the quarter was up 27.6% compared to the same quarter last year. As a group, equities research analysts predict that Bandwidth Inc. will post 0.08 EPS for the current year.

Hedge Funds Weigh In On Bandwidth

Large investors have recently added to or reduced their stakes in the business. Innealta Capital LLC purchased a new position in shares of Bandwidth in the second quarter worth about $30,000. nVerses Capital LLC lifted its position in Bandwidth by 80.0% in the third quarter. nVerses Capital LLC now owns 1,800 shares of the company’s stock valued at $32,000 after purchasing an additional 800 shares during the last quarter. Redwood Wealth Management Group LLC purchased a new stake in shares of Bandwidth during the second quarter valued at approximately $35,000. Quarry LP grew its holdings in shares of Bandwidth by 157.6% in the third quarter. Quarry LP now owns 2,035 shares of the company’s stock worth $36,000 after purchasing an additional 1,245 shares during the last quarter. Finally, Daiwa Securities Group Inc. purchased a new position in shares of Bandwidth in the second quarter worth $57,000. Hedge funds and other institutional investors own 68.53% of the company’s stock.

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.