Bandwidth (NASDAQ:BAND) Trading Down 4.9% – What’s Next?

Bandwidth Inc. (NASDAQ:BAND)’s stock price traded down 4.9% during mid-day trading on Wednesday . The stock traded as low as $48.43 and last traded at $49.25. 138,041 shares traded hands during trading, a decline of 81% from the average session volume of 730,735 shares. The stock had previously closed at $51.78.

Analysts Set New Price Targets

A number of analysts recently commented on BAND shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Bandwidth in a research note on Monday, April 20th. Zacks Research upgraded shares of Bandwidth from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 7th. B. Riley Financial raised their price target on shares of Bandwidth from $20.00 to $27.00 and gave the stock a “buy” rating in a research note on Friday, April 17th. Wall Street Zen cut shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 16th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Bandwidth in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Bandwidth currently has a consensus rating of “Moderate Buy” and an average price target of $43.25.

Bandwidth Price Performance

The company has a market capitalization of $1.61 billion, a price-to-earnings ratio of -133.22 and a beta of 2.93. The company’s 50 day simple moving average is $44.52 and its 200-day simple moving average is $25.28. 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 (NASDAQ:BAND) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for 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 research analysts predict that Bandwidth Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Bandwidth news, insider Devin M. Krupka sold 1,198 shares of Bandwidth stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $58.85, for a total value of $70,502.30. Following the completion of the sale, the insider owned 26,371 shares in the company, valued at $1,551,933.35. The trade was a 4.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Daryl E. Raiford sold 4,228 shares of Bandwidth stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $64.15, for a total value of $271,226.20. Following the completion of the sale, the chief financial officer owned 42,919 shares of the company’s stock, valued at $2,753,253.85. This trade represents a 8.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 127,269 shares of company stock worth $7,192,523 over the last ninety days. Insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BAND. Rhumbline Advisers grew its holdings in Bandwidth by 15.0% in the 2nd quarter. Rhumbline Advisers now owns 40,927 shares of the company’s stock valued at $651,000 after buying an additional 5,324 shares during the period. Quantbot Technologies LP purchased a new stake in Bandwidth in the 2nd quarter valued at about $128,000. Arrowstreet Capital Limited Partnership increased its stake in Bandwidth by 26.6% during the second quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company’s stock worth $5,933,000 after acquiring an additional 78,360 shares during the last quarter. Invesco Ltd. increased its stake in Bandwidth by 4.7% during the second quarter. Invesco Ltd. now owns 56,367 shares of the company’s stock worth $896,000 after acquiring an additional 2,532 shares during the last quarter. Finally, Jump Financial LLC acquired a new stake in Bandwidth during the second quarter worth about $221,000. Hedge funds and other institutional investors own 68.53% of the company’s stock.

Bandwidth Company Profile

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.