RALEIGH – The chief financial officer of Bandwidth Inc. profited more than $1.6 million by exercising a stock option and selling the stock at the market price, according to a filing Friday with the Securities and Exchange Commission.

Jeffrey Hoffman exercised his option to purchase 45,000 shares at a price of $5.80 per share on Aug. 8, spending $261,000.

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He then sold 20,000 shares at an average price of $42.49 per share and then sold 25,000 shares at an average price of $43.79.

The profit was $1.68 million. Hoffman still has the option to purchase another 36,522 shares at the $5.80 price.

Bandwidth shares closed Friday at $44.49, up $1.34, or 3.1 percent.

Hoffman has been with the company since October 2011. Before joining Bandwidth, he served as vice president of financial planning and analysis for Hawaiian Telcom where he led the company’s budgeting, financial modeling and management reporting functions.

Prior to Hawaiian Telcom, Hoffman served as the director of finance and planning for Madison River Communications where he was instrumental in mergers and acquisitions throughout its history, including its eventual acquisition by CenturyLink in 2007.

Bandwidth is a communications technology services company that went public in 2017. In the three quarters since it has been a public company, it has beaten Wall Street expectations.

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.

This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism