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

Bandwidth Inc. (NASDAQ:BAND) saw a large drop in short interest in the month of December. As of December 15th, there was short interest totalling 749,900 shares, a drop of 6.0% from the November 30th total of 797,500 shares. Based on an average daily trading volume, of 246,600 shares, the short-interest ratio is presently 3.0 days.

Wall Street Analyst Weigh In

A number of research analysts have commented on BAND shares. Needham & Company LLC reissued a “hold” rating on shares of Bandwidth in a research report on Friday, November 1st. Morgan Stanley boosted their target price on shares of Bandwidth from $17.00 to $18.00 and gave the stock an “underweight” rating in a report on Wednesday, December 18th. Finally, Robert W. Baird raised their price objective on Bandwidth from $19.00 to $22.00 and gave the stock a “neutral” rating in a research report on Friday, November 1st. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $28.83.

Bandwidth Stock Performance

BAND traded up $0.13 during trading on Wednesday, reaching $17.02. 280,742 shares of the company’s stock were exchanged, compared to its average volume of 302,649. 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 company’s fifty day simple moving average is $19.15 and its 200-day simple moving average is $18.07. Bandwidth has a 1 year low of $11.90 and a 1 year high of $25.02. The stock has a market capitalization of $468.22 million, a P/E ratio of -18.30 and a beta of 1.51.

Bandwidth (NASDAQ:BAND) last announced its quarterly 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. The company had revenue of $193.90 million for the quarter, compared to the consensus estimate of $182.05 million. Bandwidth had a negative return on equity of 0.89% and a negative net margin of 2.23%. The firm’s revenue for the quarter was up 27.6% compared to the same quarter last year. During the same period last year, the firm earned $0.03 EPS. As a group, research analysts predict that Bandwidth will post 0.08 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, General Counsel Richard Brandon Asbill sold 5,561 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 $118,226.86. Following the transaction, the general counsel now owns 41,825 shares of the company’s stock, valued at approximately $889,199.50. This represents a 11.74 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Daryl Raiford sold 4,371 shares of the firm’s stock in a transaction 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 owns 93,451 shares in the company, valued at approximately $1,934,435.70. This represents a 4.47 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 44,733 shares of company stock valued at $948,310 in the last 90 days. Company insiders own 6.20% of the company’s stock.

Institutional Trading of Bandwidth

Hedge funds and other institutional investors have recently bought and sold shares of the stock. nVerses Capital LLC boosted its position in Bandwidth by 80.0% in the 3rd quarter. nVerses Capital LLC now owns 1,800 shares of the company’s stock worth $32,000 after purchasing an additional 800 shares in the last quarter. Quarry LP lifted its stake in shares of Bandwidth by 157.6% in the 3rd quarter. Quarry LP now owns 2,035 shares of the company’s stock valued at $36,000 after purchasing an additional 1,245 shares during the period. Redwood Wealth Management Group LLC purchased a new stake in Bandwidth during the second quarter worth $35,000. Daiwa Securities Group Inc. acquired a new stake in Bandwidth during the second quarter valued at $57,000. Finally, Meeder Asset Management Inc. purchased a new position in Bandwidth in the third quarter valued at $74,000. 68.53% of the stock is 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.