Bandwidth Stock Affordable After Company Reveals New Partnerships

The equity has shed over 60% since hitting its latest record high

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Bandwidth Inc. (NASDAQ:BAND) is a global communications software company that helps enterprises connect people around the world with cloud-ready voice, messaging, and emergency services. BAND’s network reaches more than 60 countries covering 90% of global GDP. Companies use Bandwidth's application programming interfaces (APIs) to embed communications into software and applications. At last check, BAND is trading down nearly 4% at $67.01.

On Dec. 8, Bandwidth announced three new partnerships in an effort to extend the communications software company's capabilities in 911 emergency services ahead of the upcoming RAY BAUM'S Act compliance deadline of Jan. 6. The agreements are with the three top 911 caller location management application service providers including 911 Secure, 911inform, and 9Line Software. These partnerships will provide Bandwidth a full-stack emergency services solution to address the needs of large enterprises and enable integrations with popular non-fixed IP-based communications systems.

Bandwidth stock has decreased about 61% year-over-year and has shed 66% since peaking at its all-time high of $198.61 in October 2020. Additionally, shares of BAND have fallen 56% year-to-date and have tacked on 8% since bottoming at a 52-week low of $62.07 at the end of November.

From a fundamental perspective, Bandwidth stock’s bearish form this past year has brought down BAND's valuation to an intriguing level. Bandwidth stock currently trades at a very attractive price-sales ratio of 3.72, given how fast the communications software company is growing its revenues.

Short interest has been chopping lower, down 5.1% during he past two reporting periods. This accounts for 16.7% of the stock's total available float, or more than eight days' worth of pent-up buying power.

What's more, Bandwith stock sports attractively priced premiums. The stock's Schaeffer's Volatility Index (SVI) of 60% sits higher than 31% of readings from the last 12 months, suggesting options players are pricing in low volatility expectations for the security at the moment.

Additionally, Bandwidth stock has a forward-price earnings ratio of 116.28, which is extremely high but marks an expected shift into profitability for the company. Overall, BAND is currently offering a strong opportunity for growth investors to pick up Bandwidth stock at a hefty discount.
 




 
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