Bandwidth (NASDAQ:BAND) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Bandwidth (NASDAQ:BAND) from a buy rating to a hold rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

Several other analysts have also recently commented on BAND. Weiss Ratings cut shares of Bandwidth from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, August 27th. Needham & Company LLC reissued a “buy” rating on shares of Bandwidth in a research note on Thursday, August 20th. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. Bank of America began coverage on Bandwidth in a report on Wednesday, September 16th. They set a “neutral” rating and a $60.00 price objective for the company. Finally, Citizens Jmp boosted their target price on Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research note on Monday, July 20th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Bandwidth currently has an average rating of “Moderate Buy” and an average price target of $59.83.

Bandwidth Price Performance

BAND opened at $54.31 on Friday. The firm has a market capitalization of $1.75 billion, a P/E ratio of -187.28, a PEG ratio of 4.39 and a beta of 3.03. Bandwidth has a 12-month low of $12.50 and a 12-month high of $79.08. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 0.87. The stock has a fifty day moving average of $52.16 and a 200-day moving average of $44.84.

Bandwidth (NASDAQ:BAND) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.01. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The firm had revenue of $219.90 million during the quarter, compared to the consensus estimate of $217.62 million. The firm’s quarterly revenue was up 22.2% on a year-over-year basis. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. Equities analysts forecast that Bandwidth will post 0.65 EPS for the current fiscal year.

Insider Transactions at Bandwidth

In other Bandwidth news, insider Kade Ross sold 1,616 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $79,426.40. Following the transaction, the insider directly owned 48,071 shares in the company, valued at $2,362,689.65. This trade represents a 3.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO David Morken sold 5,128 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $252,041.20. Following the completion of the sale, the chief executive officer directly owned 6,702 shares of the company’s stock, valued at $329,403.30. This represents a 43.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,550 shares of company stock valued at $1,154,782 in the last three months. 5.26% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. UBS Group AG raised its stake in shares of Bandwidth by 189.2% in the fourth quarter. UBS Group AG now owns 205,300 shares of the company’s stock valued at $3,172,000 after purchasing an additional 134,309 shares in the last quarter. Bastion Asset Management Inc. bought a new stake in Bandwidth in the first quarter valued at about $6,592,000. Walleye Capital LLC bought a new stake in Bandwidth in the first quarter valued at about $1,069,000. Tidal Investments LLC acquired a new position in Bandwidth in the second quarter worth about $1,451,000. Finally, Arrowstreet Capital Limited Partnership raised its position in Bandwidth by 299.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock worth $12,268,000 after purchasing an additional 516,117 shares in the last quarter. Institutional investors and hedge funds own 68.53% of the company’s stock.

About Bandwidth

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and communications services for businesses, software developers and service providers. Its platform enables organizations to integrate voice calling, text messaging and other communications capabilities into applications, websites and business workflows.

The company’s offerings include voice and messaging APIs, toll-free and local telephone numbers, emergency communications and 911 access, authentication and related communications tools.