Bandwidth (NASDAQ:BAND) Shares Up 9.9% - What's Next?

Key Points

• Shares jumped ~9.9% intraday to about $22.44, leaving Bandwidth with a market cap near $722 million and a negative trailing P/E (~-53.5); the stock is trading well above its 50- and 200-day moving averages (~$15.8 and $15.2).
• Analyst sentiment is mixed but leaning positive: B. Riley raised its target to $27 and Wall Street Zen upgraded to a "buy," while Weiss Ratings remains a "sell," leaving an average MarketBeat rating of "Moderate Buy" with a $24.75 target.
• Company insiders trimmed exposure (CFO sold 16,100 shares), while institutional ownership is high (about 68.5%), indicating strong hedge fund and institutional interest despite insider selling.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) traded up 9.9% on Friday . The company traded as high as $22.50 and last traded at $22.4350. 366,664 shares traded hands during mid-day trading, a decline of 3% from the average session volume of 378,588 shares. The stock had previously closed at $20.42.

Wall Street Analyst Weigh In

BAND has been the subject of several research reports. B. Riley Financial lifted their target price on Bandwidth from $20.00 to $27.00 and gave the company a "buy" rating in a research report on Friday. Wall Street Zen raised shares of Bandwidth from a "hold" rating to a "buy" rating in a research note on Saturday, April 11th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Bandwidth in a research note on Wednesday, January 21st. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Bandwidth currently has an average rating of "Moderate Buy" and an average target price of $24.75.

Bandwidth Stock Up 12.7%

The firm has a market cap of $722.21 million, a PE ratio of -53.51 and a beta of 2.03. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 0.62. The firm has a 50 day moving average price of $15.78 and a 200-day moving average price of $15.18.

Insider Buying and Selling at Bandwidth

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

Institutional Trading of Bandwidth

A number of hedge funds and other institutional investors have recently bought and sold shares of BAND. Vanguard Group Inc. boosted its position in shares of Bandwidth by 3.5% during the 3rd quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company's stock worth $33,149,000 after acquiring an additional 67,428 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Bandwidth by 2.1% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,464,976 shares of the company's stock worth $24,423,000 after acquiring an additional 30,248 shares in the last quarter. Portolan Capital Management LLC lifted its stake in Bandwidth by 115.8% during the third quarter. Portolan Capital Management LLC now owns 745,802 shares of the company's stock worth $12,433,000 after purchasing an additional 400,231 shares during the last quarter. State Street Corp boosted its holdings in Bandwidth by 2.6% in the fourth quarter. State Street Corp now owns 649,426 shares of the company's stock valued at $10,034,000 after purchasing an additional 16,654 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its stake in Bandwidth by 10.5% in the third quarter. Ameriprise Financial Inc. now owns 642,264 shares of the company's stock valued at $10,707,000 after purchasing an additional 61,004 shares during the last quarter. 68.53% of the stock is currently owned by institutional investors and hedge funds.

Bandwidth Company Profile

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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