Bandwidth (NASDAQ:BAND) Trading 5.2% Higher – Should You Buy?

Bandwidth Inc. (NASDAQ:BAND)’s stock price rose 5.2% during trading on Tuesday . The company traded as high as $62.82 and last traded at $63.8450. 129,169 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 794,301 shares. The stock had previously closed at $60.67.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on BAND shares. Citigroup reaffirmed an “outperform” rating on shares of Bandwidth in a research note on Thursday, April 30th. Citizens Jmp upped their price target on shares of Bandwidth from $45.00 to $70.00 and gave the stock a “market outperform” rating in a research report on Friday, May 15th. B. Riley Financial lifted their price target on shares of Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a report on Friday, April 17th. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research note on Friday. Finally, Needham & Company LLC increased their target price on Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Bandwidth currently has an average rating of “Moderate Buy” and an average price target of $43.25.

Bandwidth Price Performance

The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.94 and a current ratio of 0.94. The firm has a market cap of $2.16 billion, a price-to-earnings ratio of -178.35 and a beta of 2.92. The company’s fifty day moving average is $54.74 and its two-hundred day moving average is $29.38.

Bandwidth (NASDAQ:BAND) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, topping 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 firm 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. Equities research analysts forecast that Bandwidth Inc. will post 0.55 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Daryl E. Raiford sold 4,228 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $64.15, for a total transaction of $271,226.20. Following the sale, the chief financial officer directly owned 42,919 shares in the company, valued at approximately $2,753,253.85. This trade represents a 8.97% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the company’s stock in a transaction that occurred 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 owned 3,000 shares of the company’s stock, valued at approximately $216,090. This represents a 90.69% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 127,269 shares of company stock valued at $7,192,523. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Large investors have recently modified their holdings of the business. Tower Research Capital LLC TRC increased its holdings in Bandwidth by 183.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock worth $60,000 after purchasing an additional 2,445 shares during the last quarter. Raymond James Financial Inc. bought a new position in Bandwidth in the 2nd quarter worth approximately $85,000. Quantbot Technologies LP bought a new stake in shares of Bandwidth during the second quarter valued at about $128,000. State of Wyoming lifted its stake in shares of Bandwidth by 104.6% in the 4th quarter. State of Wyoming now owns 8,756 shares of the company’s stock worth $135,000 after acquiring an additional 4,476 shares during the period. Finally, Harbor Capital Advisors Inc. increased its stake in shares of Bandwidth by 35.1% during the fourth quarter. Harbor Capital Advisors Inc. now owns 10,143 shares of the company’s stock valued at $157,000 after acquiring an additional 2,634 shares during the period. 68.53% of the stock is currently owned by institutional investors and hedge funds.

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.