Bandwidth (NASDAQ:BAND) Given New $57.00 Price Target at Morgan Stanley

Bandwidth (NASDAQ:BAND) had its price objective raised by research analysts at Morgan Stanley from $56.00 to $57.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley‘s price target points to a potential upside of 20.94% from the stock’s current price.

BAND has been the subject of a number of other research reports. Citizens Jmp increased their price objective on Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a report on Monday, July 20th. Piper Sandler upped their target price on shares of Bandwidth from $38.00 to $52.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 19th. 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 report on Thursday, July 9th. Wall Street Zen upgraded Bandwidth from a “hold” rating to a “buy” rating in a research note on Saturday, October 17th. Finally, Weiss Ratings cut shares of Bandwidth from a “hold (c)” rating to a “sell (d+)” rating in a research note on Friday, October 23rd. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $59.43.

Bandwidth Price Performance

Bandwidth stock traded down $5.98 during midday trading on Friday, hitting $47.13. 872,215 shares of the company’s stock were exchanged, compared to its average volume of 883,665. The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.04 and a current ratio of 2.04. Bandwidth has a 52-week low of $12.50 and a 52-week high of $79.08. The company has a market cap of $1.52 billion, a P/E ratio of -164.73, a PEG ratio of 4.32 and a beta of 3.01. The stock has a 50-day moving average price of $51.56 and a two-hundred day moving average price of $40.58.

Bandwidth (NASDAQ:BAND) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.03. The firm had revenue of $234.02 million for the quarter, compared to analysts’ expectations of $233.15 million. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%. Bandwidth’s revenue for the quarter was up 21.9% compared to the same quarter last year. On average, equities research analysts forecast that Bandwidth will post 0.64 earnings per share for the current year.

Insider Activity at Bandwidth

In other news, CFO Daryl Raiford sold 4,673 shares of Bandwidth stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $49.15, for a total value of $229,677.95. Following the transaction, the chief financial officer owned 35,832 shares of the company’s stock, valued at $1,761,142.80. The trade was a 11.54% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Devesh Agarwal sold 4,869 shares of the business’s stock in a transaction that occurred on 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 directly owned 79,138 shares in the company, valued at approximately $3,889,632.70. This represents a 5.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 25,050 shares of company stock valued at $1,228,342 over the last 90 days. Insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP boosted its position in shares of Bandwidth by 138.9% during the second quarter. Wellington Management Group LLP now owns 911,893 shares of the company’s stock worth $57,723,000 after buying an additional 530,182 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in Bandwidth by 299.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock valued at $12,268,000 after purchasing an additional 516,117 shares in the last quarter. Bastion Asset Management Inc. acquired a new stake in shares of Bandwidth in the 1st quarter worth approximately $6,592,000. Bank of New York Mellon Corp purchased a new stake in Bandwidth in the 2nd quarter valued at approximately $6,711,000. Finally, Dimensional Fund Advisors LP grew its position in shares of Bandwidth by 6.3% in the first quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company’s stock valued at $27,647,000 after purchasing an additional 91,812 shares during the period. Institutional investors and hedge funds own 68.53% of the company’s stock.

Bandwidth News Roundup

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Bandwidth reported third-quarter revenue of $234.0 million, up 22% year over year and slightly above estimates. Adjusted EBITDA rose 43% to $34.8 million, while the company generated $33.0 million in free cash flow and returned to GAAP profitability. Bandwidth Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Adjusted earnings of $0.50 per share exceeded the $0.47 consensus estimate, and revenue also topped expectations modestly. Results compared favorably with $0.36 per share in the prior-year quarter. Bandwidth Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management reaffirmed 2026 revenue guidance of $905 million to $910 million and adjusted EBITDA guidance of $124 million to $125 million. It also expects double-digit Cloud Communications growth in 2027, supported by voice-usage demand. An analyst cited accelerating net revenue retention and maintained a Buy rating. Bandwidth: Full Steam Ahead As Net Revenue Retention Soars
• Neutral Sentiment: Bandwidth amended its credit agreement and expanded its board with Chip Schroeder, a former Silver Lake managing director. The changes may improve financial flexibility and governance, but no immediate earnings impact was indicated. Bandwidth Appoints Chip Schroeder to Board of Directors
• Negative Sentiment: The key disappointment was guidance that was reaffirmed rather than raised. After BAND’s sharp rally, investors may have been expecting a stronger forecast, making the otherwise modest quarterly beats insufficient to support the valuation. Bandwidth Sinks on In-Line Guidance Despite Q3 Beat
• Negative Sentiment: Reported insider-trading data showed selling by multiple executives and directors, with no open-market purchases during the past six months. Although such sales may be compensation-related, the pattern can weigh on sentiment at a high-growth company.

About Bandwidth

Bandwidth Inc (NASDAQ:BAND) is a cloud communications company that provides application programming interfaces (APIs) and related network services for integrating voice, messaging and emergency communications into software applications. Its platform is designed for businesses, communications providers and technology companies that need to build communications capabilities into customer-facing products and internal workflows.

The company’s offerings include programmable voice, text messaging and toll-free messaging services, as well as emergency calling capabilities through its E911 solution.