What happened
Shares of Bandwidth (BAND 1.69%) sold off on Wednesday, down 11% for the session. CEO and company co-founder David Morken gave a fireside chat today, and its chief information officer sold some stock. However, it seems that today was just a down day on the market, leading to a big part of Bandwidth's fall.
So what
This morning at the Morgan Stanley Technology, Media, and Telecom Conference, Morken gave nearly a half-hour talk. He shared some of the reasons his company has a bright future, but there weren't any new revelations. The presentation was fairly general and probably didn't contribute to the stock's decline.
Image source: Getty Images.
Perhaps more bearish, CIO Kade Ross sold some Bandwidth stock. According to the filing with the Securities and Exchange Commission, Ross sold 500 shares on March 1, reducing his stake by about 9.6%. Following the sale, Ross still owns 4,720 shares. However, it's possible some investors don't like this news, contributing to the stock's sell-off today.
Now what
If you're a shareholder worried about Ross' move to sell stock, remember that no one knows the reason for selling. Executives are often compensated in stock, and life changes and needs can motivate a sale. If Ross was attempting to bail on the stock before bad news broke, then, logically, other executives would try to sell, too.
In reality, it seems the majority of Bandwidth stock's decline today came from a bad day for the stock market. These days are normal, to be expected, and don't materially effect the companies we're investing in. Morken was upbeat today about Bandwidth's long-term opportunity. And capitalizing on the opportunity can take this stock higher in the long run.
