Bandwidth Stock Alpha and Beta Analysis

BAND Stock  USD 20.77  0.48  2.37%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Bandwidth. It also helps investors analyze the systematic and unsystematic risks associated with investing in Bandwidth over a specified time horizon. Remember, high Bandwidth's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Bandwidth's market risk premium analysis include:
Beta
1.7
Alpha
0.11
Risk
2.9
Sharpe Ratio
0.11
Expected Return
0.31
Please note that although Bandwidth alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Bandwidth did 0.11  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Bandwidth stock's relative risk over its benchmark. Bandwidth has a beta of 1.70  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Bandwidth will likely underperform. At present, Bandwidth's Price Book Value Ratio is projected to decrease significantly based on the last few years of reporting. The current year's Enterprise Value Multiple is expected to grow to 32.34, whereas Book Value Per Share is forecasted to decline to 7.11.

Enterprise Value

1.16 Billion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Bandwidth Backtesting, Bandwidth Valuation, Bandwidth Correlation, Bandwidth Hype Analysis, Bandwidth Volatility, Bandwidth History and analyze Bandwidth Performance.
For information on how to trade Bandwidth Stock refer to our How to Trade Bandwidth Stock guide.

Bandwidth Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Bandwidth market risk premium is the additional return an investor will receive from holding Bandwidth long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Bandwidth. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Bandwidth's performance over market.
α0.11   β1.70

Bandwidth expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Bandwidth's Buy-and-hold return. Our buy-and-hold chart shows how Bandwidth performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Bandwidth Market Price Analysis

Market price analysis indicators help investors to evaluate how Bandwidth stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Bandwidth shares will generate the highest return on investment. By understating and applying Bandwidth stock market price indicators, traders can identify Bandwidth position entry and exit signals to maximize returns.

Bandwidth Return and Market Media

The median price of Bandwidth for the period between Thu, Sep 5, 2024 and Wed, Dec 4, 2024 is 17.8 with a coefficient of variation of 7.69. The daily time series for the period is distributed with a sample standard deviation of 1.4, arithmetic mean of 18.22, and mean deviation of 1.16. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
1
Acquisition by Anthony Bartolo of 3014 shares of Bandwidth subject to Rule 16b-3
09/26/2024
2
Bandwidth to Report Third Quarter 2024 Financial Results on October 31, 2024
10/17/2024
3
Bandwidth to Release Quarterly Earnings on Thursday
10/29/2024
4
Earnings To Watch Bandwidth Inc Reports Q3 2024 Result
10/30/2024
5
Bandwidth Revenue Up, EBITDA Shines
10/31/2024
6
Band Protocol Reaches Market Cap of 162.84 Million
11/01/2024
7
Disposition of tradable shares by David Morken of Bandwidth at 18.7254 subject to Rule 16b-3
11/04/2024
8
Bandwidth CEO David Morken sells 1,778 in stock
11/05/2024
9
Bandwidth Inc Trading 4.07 percent Higher on Nov 22
11/22/2024
10
Disposition of 27 shares by Bailey Brian D. of Bandwidth subject to Rule 16b-3
11/27/2024
11
Disposition of 15350 shares by David Morken of Bandwidth at 21.2571 subject to Rule 16b-3
11/29/2024
12
Disposition of 4371 shares by Daryl Raiford of Bandwidth at 20.7009 subject to Rule 16b-3
12/02/2024
13
Insider Selling Bandwidth Inc. CFO Sells 4,371 Shares of Stock
12/03/2024

About Bandwidth Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Bandwidth or other stocks. Alpha measures the amount that position in Bandwidth has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2023 2024 (projected)
Dividend Yield0.09940.088
Price To Sales Ratio0.620.59

Bandwidth Upcoming Company Events

As portrayed in its financial statements, the presentation of Bandwidth's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Bandwidth's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Bandwidth's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Bandwidth. Please utilize our Beneish M Score to check the likelihood of Bandwidth's management manipulating its earnings.
22nd of February 2024
Upcoming Quarterly Report
View
7th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
22nd of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

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When determining whether Bandwidth is a strong investment it is important to analyze Bandwidth's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bandwidth's future performance. For an informed investment choice regarding Bandwidth Stock, refer to the following important reports:
Check out Bandwidth Backtesting, Bandwidth Valuation, Bandwidth Correlation, Bandwidth Hype Analysis, Bandwidth Volatility, Bandwidth History and analyze Bandwidth Performance.
For information on how to trade Bandwidth Stock refer to our How to Trade Bandwidth Stock guide.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Bandwidth technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Bandwidth technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Bandwidth trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...