Bandwidth $BAND Turnaround Play Off Strong Bottom Move

  • Post category:Stock Trading
  • Reading time:7 mins read
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Bandwidth $BAND stock is in a powerful move off a bottom on the chart that makes it a major turnaround play candidate as of November 8, 2022.

Bandwidth Announces Third Quarter 2022 Financial Results

On November 1, 2022, Bandwidth (NASDAQ: BAND) announced financial results for the third quarter ended September 30, 2022. Bandwidth reported Q3 non-GAAP EPS of 27c versus the consensus estimate of 3c. The companny reported Q3 revenue of $148M versus the consensus estimate of $140.9M.

Bandwidth income statement barchart showing rising revenue as on November 8, 2022.
Annual Sales Revenue

Bandwidth raised its FY22 non-GAAP EPS forecast to 35c-37c from 10c-14c. The company raised its FY22 revenue forecast to $562M-$564M from $551M-$557M.

“Customer demand across our full range of software solutions over-achieved our expectations while our operating leverage delivered record non-GAAP gross margin,” said Daryl Raiford, Bandwidth’s CFO. “Accordingly, we are raising our FY22 outlook for both revenue and non-GAAP EPS. We are well positioned to execute on our strategy of delivering business-critical services to Global 2000 enterprises with profitable growth.”

“We exceeded our guidance ranges for the Q3 and raised our full-year outlook on both the top and bottom lines,” said David Morken, Bandwidth’s CEO. “Looking ahead, our operating discipline, mission-critical services, and stability of our customer base give us deep conviction we will thrive during this uncertain macro environment. I am incredibly proud of the team for serving our customers so well during this period.”

Bandwidth price target raised at Citi

On November 2, 2022, Tyler Radke, an analyst at Citi, raised the price target on Bandwidth to $17 and kept a Neutral rating on the shares. The analyst said that Q3 results were encouraging and showed incremental signs of stability. Radke tells investors that customer additions and expansions were improved with strong messaging growth.

Bandwidth price target lowered to $34 from $50 at Canaccord

On November 2, 2022, Canaccord analyst Walkley lowered his price target for Bandwidth to $34 from $50 and maintained a Buy rating on the stock. Despite the continued execution and the combination of steady growth with expanding margins, the analyst lowered his price target due to the ongoing compression of Communications Software companies.

Bandwidth price target lowered to $18 from $28 at Piper Sandler

On November 2, 2022, Piper Sandler analyst James Fish lowered his price target for Bandwidth to $18 from $28 and maintained an Overweight rating on the stock. Fish tells investors in a research note that the company reported positive free cash flow and higher margins, as well as announcing a $160M debt reduction. The analyst says that the progress the company has made is good, but there is more to do, and the results suggest that the core voice business is slowing down.

Sharpen CX improves the contact center agent experience with Bandwidth

Sharpen CX improves the contact center agent experience with Bandwidth

Bandwidth $BAND Stock Technical Analysis

Bandwidth $BAND stock is in a technical weak downtrend, but we could see the trend rating upgraded soon. The stock has made an incredible move off the bottom as valuation became too attractive to ignore. Resistance at $19.47 was taken out and the next resistance level is in the $21.41 area. The surge in the MACD and money flow suggests an institutional investor is adding to its long position.

Bandwidth stock chart on November 8, 2022, with a positive MACD and positive money flow.

If we zoom out to the 2-year weekly chart, we can see the basing and then powerful move off a potential bottom.

Bandwidth stock chart 2 year Weekly chart on November 8, 2022.
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