Bandwidth Inc. (NASDAQ:BAND) Sees Significant Decline in Short Interest

Bandwidth Inc. (NASDAQ:BAND) saw a significant decline in short interest in the month of November. As of November 30th, there was short interest totalling 797,500 shares, a decline of 17.4% from the November 15th total of 965,200 shares. Based on an average trading volume of 241,100 shares, the days-to-cover ratio is currently 3.3 days.

Insider Activity

In related news, insider Devin M. Krupka sold 3,658 shares of the stock in a transaction that occurred on Friday, November 29th. The stock was sold at an average price of $21.26, for a total transaction of $77,769.08. Following the sale, the insider now owns 11,097 shares of the company’s stock, valued at $235,922.22. This represents a 24.79 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, General Counsel Richard Brandon Asbill sold 5,561 shares of Bandwidth stock in a transaction on Friday, November 29th. The shares were sold at an average price of $21.26, for a total value of $118,226.86. Following the completion of the transaction, the general counsel now directly owns 41,825 shares of the company’s stock, valued at $889,199.50. This represents a 11.74 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 44,733 shares of company stock valued at $948,310. 6.20% of the stock is owned by company insiders.

Institutional Trading of Bandwidth

A number of institutional investors have recently added to or reduced their stakes in BAND. Franklin Resources Inc. lifted its holdings in shares of Bandwidth by 40.9% in the third quarter. Franklin Resources Inc. now owns 77,481 shares of the company’s stock worth $1,325,000 after buying an additional 22,505 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Bandwidth by 3.6% in the 3rd quarter. Geode Capital Management LLC now owns 568,667 shares of the company’s stock valued at $9,960,000 after purchasing an additional 19,832 shares during the period. Barclays PLC grew its position in shares of Bandwidth by 9.1% during the 3rd quarter. Barclays PLC now owns 224,497 shares of the company’s stock valued at $3,931,000 after purchasing an additional 18,778 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of Bandwidth in the third quarter worth $453,000. Finally, State Street Corp increased its holdings in shares of Bandwidth by 3.7% in the third quarter. State Street Corp now owns 655,768 shares of the company’s stock worth $11,482,000 after purchasing an additional 23,352 shares during the period. Hedge funds and other institutional investors own 68.53% of the company’s stock.

Analysts Set New Price Targets

BAND has been the subject of several recent research reports. Robert W. Baird boosted their target price on shares of Bandwidth from $19.00 to $22.00 and gave the stock a “neutral” rating in a research report on Friday, November 1st. Needham & Company LLC reissued a “hold” rating on shares of Bandwidth in a research report on Friday, November 1st. Finally, JMP Securities reaffirmed a “market outperform” rating and issued a $36.00 price objective on shares of Bandwidth in a research report on Tuesday, August 27th. 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 data from MarketBeat, Bandwidth presently has a consensus rating of “Hold” and an average target price of $28.33.

Bandwidth Stock Performance

Shares of BAND traded down $0.88 during mid-day trading on Friday, hitting $18.71. The stock had a trading volume of 170,892 shares, compared to its average volume of 305,697. 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 firm has a market cap of $514.71 million, a P/E ratio of -20.12 and a beta of 1.51. Bandwidth has a 52 week low of $11.90 and a 52 week high of $25.02. The business has a fifty day moving average price of $19.13 and a 200-day moving average price of $18.25.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings data on Thursday, October 31st. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.32 by $0.11. Bandwidth had a negative net margin of 2.23% and a negative return on equity of 0.89%. The business had revenue of $193.90 million for the quarter, compared to the consensus estimate of $182.05 million. During the same period in the prior year, the firm earned $0.03 earnings per share. The company’s revenue was up 27.6% compared to the same quarter last year. On average, equities research analysts expect that Bandwidth will post 0.08 EPS for the current year.

Bandwidth Company Profile

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.