Bandwidth (NASDAQ:BAND) Shares Down 5.3% - Time to Sell?

Key Points

• Bandwidth shares fell 5.3% to about $16.57 on Friday (intraday low $16.81) on sharply reduced volume of ~22,264 shares, a 94% drop from its ~368K average daily volume.
• Analysts are divided—four Buys, one Hold and two Sells—resulting in an average rating of "Hold" and an average price target of $20.60.
• CFO Daryl Raiford sold 16,100 shares at roughly $15.19, cutting his stake by about 30.5%, indicating meaningful insider selling while institutional investors own roughly 68.5% of the stock.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) was down 5.3% on Friday . The stock traded as low as $16.81 and last traded at $16.5740. Approximately 22,264 shares traded hands during trading, a decline of 94% from the average daily volume of 368,448 shares. The stock had previously closed at $17.51.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on BAND shares. B. Riley Financial started coverage on shares of Bandwidth in a report on Friday, January 23rd. They set a "buy" rating and a $20.00 price objective for the company. Wall Street Zen lowered shares of Bandwidth from a "buy" rating to a "hold" rating in a report on Sunday, December 14th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Bandwidth in a report on Wednesday, January 21st. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $20.60.

Bandwidth Price Performance

The company has a debt-to-equity ratio of 0.62, a current ratio of 1.42 and a quick ratio of 1.42. The company's 50 day moving average price is $15.33 and its 200 day moving average price is $15.17. The firm has a market capitalization of $514.86 million, a P/E ratio of -38.22 and a beta of 2.03.

Insider Activity at Bandwidth

In other news, CFO Daryl E. Raiford sold 16,100 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $15.19, for a total transaction of $244,559.00. Following the sale, the chief financial officer directly owned 36,645 shares of the company's stock, valued at $556,637.55. This represents a 30.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 6.50% of the stock is owned by company insiders.

Institutional Trading of Bandwidth

Several hedge funds have recently modified their holdings of BAND. Portolan Capital Management LLC grew its stake in shares of Bandwidth by 115.8% during the third quarter. Portolan Capital Management LLC now owns 745,802 shares of the company's stock valued at $12,433,000 after purchasing an additional 400,231 shares during the last quarter. CSM Advisors LLC bought a new stake in shares of Bandwidth during the fourth quarter valued at approximately $5,342,000. AQR Capital Management LLC grew its stake in shares of Bandwidth by 49.1% during the second quarter. AQR Capital Management LLC now owns 587,305 shares of the company's stock valued at $9,338,000 after purchasing an additional 193,398 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in Bandwidth by 71.4% in the third quarter. Assenagon Asset Management S.A. now owns 327,942 shares of the company's stock valued at $5,467,000 after buying an additional 136,624 shares during the period. Finally, Bridgeway Capital Management LLC acquired a new position in Bandwidth in the second quarter valued at approximately $2,166,000. 68.53% of the stock is owned by institutional investors.

About Bandwidth

Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth's solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.

Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.

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