Trade Alert: The Independent Director Of Bandwidth Inc. (NASDAQ:BAND), Brian Bailey, Has Just Spent US$201k Buying 16% More Shares

Potential Bandwidth Inc. (NASDAQ:BAND) shareholders may wish to note that the Independent Director, Brian Bailey, recently bought US$201k worth of stock, paying US$134 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 16%.

See our latest analysis for Bandwidth

Bandwidth Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director, John Murdock, sold US$3.8m worth of shares at a price of US$154 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$123. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Bandwidth than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Bandwidth

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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's great to see that Bandwidth insiders own 13% of the company, worth about US$397m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Bandwidth Tell Us?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Bandwidth (of which 1 is potentially serious!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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