RALEIGH — A Boston-based money manager has purchased a 5.4 percent stake in Raleigh-based Bandwidth Inc., according to a filing Wednesday with the Securities and Exchange Commission.
Portolan Capital Management LLC purchased 228,554 shares in the communication technology services company on June 19. That stake is worth more than $8.6 million based on Bandwidth’s midday Wednesday stock price.
Bandwidth
Portolon invests in publicly traded companies. The firm’s research effort is concentrated on small- and mid-sized U.S. companies and covers a range of opportunities including growth, value and special situations.
Portolan was founded in 2004 by George McCabe who serves as the firm’s chief investment officer.
McCabe was formerly a research analyst at the Lynch Foundation where he performed research and analysis on numerous public and private companies across broad industry groups and made portfolio allocation decisions and recommendations. He served in that role since from July 2001 to December 2004.
Prior to joining the Lynch Foundation, McCabe spent four years as a research analyst at Pilot Capital Corp., a New York based investment manager.
Bandwidth reported first quarter earnings and revenue last month that easily beat Wall Street expectations due to strong demand.
The company reported net income of $6.2 million, or 30 cents per share, compared with net income of $2.6 million, or 20 cents per share, in the first quarter of 2017. Analysts were expecting earnings of 8 cents.
Companies such as Google, Microsoft, and Ring Central use Bandwidth’s APIs to embed voice, messaging and 9-1-1 access into software and applications.
Its shares were trading at $37.77, down 3 cents, in midday Wednesday trading.
This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism
