Short Interest in Bandwidth Inc. (NASDAQ:BAND) Grows By 127.4%

Bandwidth Inc. (NASDAQ:BAND) saw a large growth in short interest in the month of June. As of June 30th, there was short interest totaling 3,504,208 shares, a growth of 127.4% from the June 15th total of 1,540,791 shares. Based on an average trading volume of 1,966,359 shares, the days-to-cover ratio is currently 1.8 days. Approximately 11.6% of the shares of the company are sold short.

Bandwidth Price Performance

Shares of Bandwidth stock opened at $68.88 on Friday. The stock has a market capitalization of $2.21 billion, a price-to-earnings ratio of -181.26 and a beta of 2.92. The firm’s 50-day moving average price is $60.85 and its two-hundred day moving average price is $32.64. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.37. Bandwidth has a 1-year low of $12.50 and a 1-year high of $79.08.

Bandwidth (NASDAQ:BAND) last posted its earnings results on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.06. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. The company had revenue of $208.78 million during the quarter, compared to analysts’ expectations of $201.58 million. Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. On average, equities analysts predict that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. B. Riley Financial boosted their price target on shares of Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Citizens Jmp raised their price objective on shares of Bandwidth from $45.00 to $70.00 and gave the stock a “market outperform” rating in a report on Friday, May 15th. Citigroup reiterated an “outperform” rating on shares of Bandwidth in a research report on Thursday, April 30th. Weiss Ratings reissued a “sell (d-)” rating on shares of Bandwidth in a research note on Monday, April 20th. Finally, Wall Street Zen lowered shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 28th. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $57.75.

Insider Activity at Bandwidth

In related news, insider Kade Ross sold 1,588 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $58.85, for a total value of $93,453.80. Following the completion of the transaction, the insider directly owned 47,996 shares in the company, valued at approximately $2,824,564.60. This represents a 3.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the firm’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $72.03, for a total value of $2,104,284.42. Following the completion of the transaction, the general counsel directly owned 3,000 shares of the company’s stock, valued at approximately $216,090. This trade represents a 90.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 127,269 shares of company stock worth $7,192,523 in the last three months. Company insiders own 5.26% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. UBS Group AG increased its position in Bandwidth by 189.2% in the 4th quarter. UBS Group AG now owns 205,300 shares of the company’s stock valued at $3,172,000 after acquiring an additional 134,309 shares in the last quarter. Nano Cap New Millennium Growth Fund L P acquired a new position in shares of Bandwidth during the fourth quarter worth approximately $1,622,000. Assenagon Asset Management S.A. grew its stake in shares of Bandwidth by 51.1% during the first quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company’s stock valued at $8,765,000 after purchasing an additional 166,423 shares during the last quarter. Blue Trust Inc. acquired a new stake in shares of Bandwidth in the first quarter valued at approximately $1,742,000. Finally, Diversified Trust Co acquired a new stake in shares of Bandwidth in the first quarter valued at approximately $184,000. 68.53% of the stock is owned by institutional investors.

About Bandwidth

Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth’s solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.

Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.