Zacks Investment Research Downgrades Bandwidth (BAND) to Hold

Bandwidth (NASDAQ:BAND) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “Bandwidth.com, Inc. provides cloud-based communications platform for enterprises primarily in the United States. The Company offers data Internet, voice/voice over Internet protocol, managed network and conferencing services. Bandwidth.com, Inc. is based in RALEIGH, United States. “

A number of other equities analysts have also recently weighed in on BAND. KeyCorp reissued an “overweight” rating and issued a $64.00 price target on shares of Bandwidth in a research note on Monday, September 3rd. Canaccord Genuity lifted their price target on Bandwidth from $44.00 to $60.00 and gave the stock a “buy” rating in a research note on Wednesday, October 31st. Morgan Stanley lifted their price target on Bandwidth from $40.00 to $44.00 and gave the stock a “hold” rating in a research note on Wednesday, October 31st. Finally, ValuEngine raised Bandwidth from a “hold” rating to a “buy” rating in a research note on Thursday, November 1st. Two investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus target price of $45.67.

NASDAQ:BAND opened at $49.12 on Monday. The stock has a market cap of $1.01 billion and a P/E ratio of 255.33. Bandwidth has a 52-week low of $18.05 and a 52-week high of $57.50.

Bandwidth (NASDAQ:BAND) last released its earnings results on Tuesday, October 30th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.20) by $0.15. The firm had revenue of $50.50 million for the quarter, compared to analyst estimates of $47.94 million. Bandwidth had a return on equity of 4.99% and a net margin of 9.58%. Bandwidth’s revenue was up 22.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.15 earnings per share. Analysts anticipate that Bandwidth will post 0.09 EPS for the current year.

In related news, Director Henry R. Kaestner sold 8,750 shares of Bandwidth stock in a transaction dated Monday, August 13th. The stock was sold at an average price of $43.96, for a total value of $384,650.00. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Henry R. Kaestner sold 19,199 shares of Bandwidth stock in a transaction dated Thursday, August 23rd. The stock was sold at an average price of $45.04, for a total value of $864,722.96. The disclosure for this sale can be found here. Insiders sold a total of 64,471 shares of company stock worth $2,924,210 in the last three months. 48.62% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of BAND. Bank of New York Mellon Corp boosted its position in Bandwidth by 48.1% during the 2nd quarter. Bank of New York Mellon Corp now owns 889,436 shares of the company’s stock worth $33,780,000 after acquiring an additional 288,730 shares during the period. Gilder Gagnon Howe & Co. LLC boosted its position in Bandwidth by 539.6% during the 2nd quarter. Gilder Gagnon Howe & Co. LLC now owns 479,811 shares of the company’s stock worth $18,223,000 after acquiring an additional 404,793 shares during the period. BlackRock Inc. boosted its position in Bandwidth by 17.2% during the 2nd quarter. BlackRock Inc. now owns 373,682 shares of the company’s stock worth $14,192,000 after acquiring an additional 54,781 shares during the period. KAMES CAPITAL plc boosted its position in Bandwidth by 42.5% during the 3rd quarter. KAMES CAPITAL plc now owns 254,792 shares of the company’s stock worth $13,631,000 after acquiring an additional 76,004 shares during the period. Finally, Portolan Capital Management LLC acquired a new stake in Bandwidth during the 2nd quarter worth about $8,680,000. 30.30% of the stock is currently owned by hedge funds and other institutional investors.

Bandwidth Company Profile

Bandwidth Inc operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provides in the United States. The company operates through two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and operate voice or text communications services across mobile application or connected device.

See Also: Preferred Stock

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