Bandwidth (NASDAQ:BAND) Shares Down 9.7% – Should You Sell?

Bandwidth Inc. (NASDAQ:BAND)’s share price traded down 9.7% during mid-day trading on Wednesday. The company traded as low as $47.57 and last traded at $47.6340. 254,525 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 870,783 shares. The stock had previously closed at $52.73.

Analysts Set New Price Targets

A number of analysts have commented on the company. Citizens Jmp boosted their target price on Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Citigroup restated a “market outperform” rating on shares of Bandwidth in a research report on Monday, July 20th. Weiss Ratings raised Bandwidth from a “sell (d+)” rating to a “hold (c)” rating in a research note on Friday, October 9th. Needham & Company LLC reiterated a “buy” rating on shares of Bandwidth in a research report on Thursday, August 20th. Finally, B. Riley Financial increased their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Four research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $59.29.

Bandwidth Stock Performance

The company has a market capitalization of $1.60 billion, a price-to-earnings ratio of -171.03, a PEG ratio of 4.14 and a beta of 3.01. The stock has a fifty day moving average price of $52.67 and a two-hundred day moving average price of $50.13. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 0.87.

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

Insider Buying and Selling

In other Bandwidth news, insider Rebecca Bottorff sold 2,713 shares of the firm’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $133,343.95. Following the sale, the insider directly owned 10,704 shares of the company’s stock, valued at $526,101.60. This trade represents a 20.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Devesh Agarwal sold 4,869 shares of Bandwidth stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $239,311.35. Following the sale, the chief operating officer owned 79,138 shares of the company’s stock, valued at approximately $3,889,632.70. This trade represents a 5.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,550 shares of company stock worth $1,154,782 in the last 90 days. 5.26% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Bandwidth

Institutional investors have recently modified their holdings of the company. State of Alaska Department of Revenue boosted its position in Bandwidth by 43.1% during the third quarter. State of Alaska Department of Revenue now owns 1,262 shares of the company’s stock worth $76,000 after acquiring an additional 380 shares during the last quarter. TD Waterhouse Canada Inc. acquired a new position in Bandwidth in the 2nd quarter valued at $70,000. Integrated Wealth Concepts LLC acquired a new position in Bandwidth in the 2nd quarter valued at $94,000. Corient Private Wealth LP acquired a new position in Bandwidth in the 2nd quarter valued at $238,000. Finally, Hsbc Holdings PLC lifted its stake in shares of Bandwidth by 8.3% during the 4th quarter. Hsbc Holdings PLC now owns 61,239 shares of the company’s stock worth $950,000 after purchasing an additional 4,686 shares during the period. 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 related services for businesses to build voice, messaging and emergency communications into their software and applications. Its platform is designed for enterprises, communications service providers and technology companies that need programmable communications capabilities.

The company’s offerings include voice calling, text messaging, toll-free and local phone numbers, authentication messaging, and 911 emergency services.