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

Key Points

• Bandwidth Inc. saw a significant decrease in short interest by 22.6% in August, with a total of 1,060,000 shares shorted as of August 15th.
• The company reported earnings per share of $0.38 for the last quarter, surpassing analysts' expectations, and recorded a revenue of $180.01 million.
• Analysts maintain a consensus rating of "Moderate Buy" for Bandwidth, with a target price of $20.80, influenced by recent upgrades from firms like Needham & Company LLC.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) saw a significant drop in short interest in August. As of August 15th, there was short interest totaling 1,060,000 shares, a drop of 22.6% from the July 31st total of 1,370,000 shares. Based on an average daily trading volume, of 269,300 shares, the short-interest ratio is presently 3.9 days. Based on an average daily trading volume, of 269,300 shares, the short-interest ratio is presently 3.9 days.

Analyst Ratings Changes

Separately, Needham & Company LLC reissued a "buy" rating and issued a $20.00 target price on shares of Bandwidth in a research note on Friday, June 13th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $20.80.

Insider Buying and Selling

In related news, CFO Daryl Raiford sold 14,143 shares of the stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $15.47, for a total value of $218,792.21. Following the transaction, the chief financial officer owned 90,395 shares of the company's stock, valued at $1,398,410.65. This represents a 13.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Devesh Agarwal sold 1,745 shares of the stock in a transaction on Friday, August 29th. The shares were sold at an average price of $15.09, for a total value of $26,332.05. Following the completion of the transaction, the chief operating officer directly owned 67,263 shares in the company, valued at approximately $1,014,998.67. This represents a 2.53% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 65,911 shares of company stock worth $1,010,613. Corporate insiders own 6.50% of the company's stock.

Institutional Trading of Bandwidth

Institutional investors and hedge funds have recently bought and sold shares of the stock. Allspring Global Investments Holdings LLC lifted its holdings in Bandwidth by 53.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 21,876 shares of the company's stock worth $287,000 after buying an additional 7,661 shares during the period. CWM LLC lifted its holdings in Bandwidth by 326.8% in the first quarter. CWM LLC now owns 7,460 shares of the company's stock worth $98,000 after buying an additional 5,712 shares during the period. Two Sigma Investments LP lifted its holdings in Bandwidth by 8.9% in the fourth quarter. Two Sigma Investments LP now owns 108,338 shares of the company's stock worth $1,844,000 after buying an additional 8,813 shares during the period. Nuveen LLC purchased a new stake in Bandwidth in the first quarter worth about $7,916,000. Finally, Price T Rowe Associates Inc. MD lifted its holdings in Bandwidth by 10.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,182 shares of the company's stock worth $293,000 after buying an additional 1,658 shares during the period. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

Bandwidth Trading Up 0.1%

Shares of NASDAQ BAND traded up $0.01 during trading hours on Friday, hitting $16.41. The company's stock had a trading volume of 314,602 shares, compared to its average volume of 222,066. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current ratio of 1.31. The stock has a market cap of $494.61 million, a price-to-earnings ratio of -48.26 and a beta of 1.81. Bandwidth has a 12 month low of $11.33 and a 12 month high of $23.00. The business has a 50-day simple moving average of $14.89 and a 200-day simple moving average of $14.29.

Bandwidth (NASDAQ:BAND - Get Free Report) last posted its earnings results on Tuesday, July 29th. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.06. Bandwidth had a positive return on equity of 1.43% and a negative net margin of 1.32%.The company had revenue of $180.01 million for the quarter, compared to analysts' expectations of $178.87 million. During the same period last year, the firm earned $0.29 earnings per share. Bandwidth's quarterly revenue was up 3.4% on a year-over-year basis. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts anticipate that Bandwidth will post 0.22 earnings per share for the current fiscal 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.