Executive VP & CFO Of Bandwidth Sold 31% Of Their Shares

We wouldn't blame Bandwidth Inc. (NASDAQ:BAND) shareholders if they were a little worried about the fact that Daryl Raiford, the Executive VP & CFO recently netted about US$617k selling shares at an average price of US$15.53. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we've seen.

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Bandwidth Insider Transactions Over The Last Year

Notably, that recent sale by Daryl Raiford is the biggest insider sale of Bandwidth shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$15.18. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Bandwidth insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Bandwidth

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Insider Ownership Of Bandwidth

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Bandwidth insiders own 7.1% of the company, worth about US$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Bandwidth Insiders?

An insider sold Bandwidth shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Bandwidth you should be aware of.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.