Bandwidth (NASDAQ:BAND) Shares Gap Up – Should You Buy?

Bandwidth Inc. (NASDAQ:BAND)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $18.84, but opened at $22.88. Bandwidth shares last traded at $21.63, with a volume of 176,031 shares trading hands.

Analysts Set New Price Targets

Several equities analysts recently weighed in on BAND shares. Needham & Company LLC restated a “hold” rating on shares of Bandwidth in a research note on Friday. Barclays reduced their target price on Bandwidth from $28.00 to $25.00 and set an “overweight” rating for the company in a research note on Friday, August 2nd. Robert W. Baird increased their target price on Bandwidth from $19.00 to $22.00 and gave the company a “neutral” rating in a research report on Friday. Finally, JMP Securities reissued a “market outperform” rating and issued a $36.00 price target on shares of Bandwidth in a report on Tuesday, August 27th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $26.14.

Bandwidth Trading Down 4.1 %

The company has a 50 day moving average of $17.47 and a 200 day moving average of $18.27. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.16 and a current ratio of 1.16. The stock has a market capitalization of $510.47 million, a price-to-earnings ratio of -20.11 and a beta of 1.51.

Bandwidth (NASDAQ:BAND) last issued its earnings results on Thursday, August 1st. The company reported $0.29 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.01. Bandwidth had a negative net margin of 3.21% and a negative return on equity of 1.89%. The business had revenue of $174.00 million during the quarter, compared to analysts’ expectations of $173.18 million. During the same period in the prior year, the business earned ($0.09) earnings per share. The company’s quarterly revenue was up 19.2% compared to the same quarter last year. On average, research analysts predict that Bandwidth Inc. will post 0.11 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Daryl Raiford sold 4,350 shares of the company’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $16.97, for a total value of $73,819.50. Following the completion of the sale, the chief financial officer now directly owns 71,546 shares in the company, valued at $1,214,135.62. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders have sold 8,525 shares of company stock valued at $146,548 in the last ninety days. 6.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Bandwidth

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Bandwidth by 1.1% in the 1st quarter. Vanguard Group Inc. now owns 1,536,051 shares of the company’s stock valued at $28,048,000 after purchasing an additional 16,181 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Bandwidth by 6.3% in the second quarter. Dimensional Fund Advisors LP now owns 1,043,013 shares of the company’s stock valued at $17,606,000 after acquiring an additional 62,201 shares during the last quarter. Acadian Asset Management LLC grew its position in Bandwidth by 79.8% in the second quarter. Acadian Asset Management LLC now owns 613,612 shares of the company’s stock worth $10,353,000 after acquiring an additional 272,309 shares during the period. Renaissance Technologies LLC grew its position in Bandwidth by 9.3% in the second quarter. Renaissance Technologies LLC now owns 604,200 shares of the company’s stock worth $10,199,000 after acquiring an additional 51,542 shares during the period. Finally, Point72 Asset Management L.P. increased its stake in Bandwidth by 411.1% during the second quarter. Point72 Asset Management L.P. now owns 597,933 shares of the company’s stock worth $10,093,000 after acquiring an additional 480,933 shares during the last quarter. 68.53% of the stock is currently owned by institutional investors and hedge funds.

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.