Bandwidth Inc. (NASDAQ:BAND) Given Average Recommendation of “Moderate Buy” by Analysts

Bandwidth Inc. (NASDAQ:BAND) has received a consensus recommendation of “Moderate Buy” from the eight brokerages that are currently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $59.80.

Several equities analysts recently weighed in on BAND shares. Citigroup reissued a “market outperform” rating on shares of Bandwidth in a research note on Monday, July 20th. Weiss Ratings downgraded shares of Bandwidth from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, August 27th. Piper Sandler increased their price objective on shares of Bandwidth from $38.00 to $52.00 and gave the stock a “neutral” rating in a report on Wednesday, August 19th. B. Riley Financial increased their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Finally, Wall Street Zen cut shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 28th.

Bandwidth News Summary

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Bandwidth’s latest reported quarter modestly exceeded expectations, with earnings of $0.37 per share versus the $0.36 consensus and revenue of $219.9 million versus $217.6 million expected. Revenue increased 22.2% year over year, while management maintained 2026 EPS guidance of $1.71–$1.79. Analysts’ consensus remains “Moderate Buy,” with an average price target of $59.80. Bandwidth earnings and analyst information
• Positive Sentiment: Institutional activity in the second quarter included several new positions, and Tower Research Capital increased its Bandwidth holding by 183.7%. Hedge funds and other institutions collectively own approximately 68.53% of the shares. Bandwidth institutional activity
• Neutral Sentiment: Director Lukas Roush sold 1,500 shares for $71,025 on August 27 under a pre-arranged Rule 10b5-1 plan. The sale reduced his ownership by only 2.5%, making it a relatively limited signal about management’s outlook. Bandwidth director sale
• Negative Sentiment: Seven insiders sold a combined approximately 22,050 shares worth $1.08 million on August 31. Sellers included CEO David Morken, CFO Daryl Raiford, COO Devesh Agarwal, General Counsel Richard Brandon Asbill, and other insiders. Several executives reduced their holdings by significant percentages, including the CEO’s 43.35% reduction and the CFO’s 11.54% reduction. The concentrated selling is likely pressuring BAND, even though insider sales can reflect personal financial planning rather than concerns about the business. Bandwidth SEC insider filing

Insider Activity at Bandwidth

In other news, insider Rebecca Bottorff sold 2,713 shares of the company’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $133,343.95. Following the completion of the sale, the insider directly owned 10,704 shares in the company, valued at $526,101.60. This represents a 20.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO David A. Morken sold 5,128 shares of the company’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $252,041.20. Following the sale, the chief executive officer owned 6,702 shares of the company’s stock, valued at approximately $329,403.30. The trade was a 43.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 52,764 shares of company stock valued at $3,259,067 over the last 90 days. 5.26% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bandwidth

A number of institutional investors have recently added to or reduced their stakes in BAND. Corient Private Wealth LP purchased a new position in shares of Bandwidth in the 2nd quarter worth about $238,000. California State Teachers Retirement System increased its position in Bandwidth by 1,541.7% during the 2nd quarter. California State Teachers Retirement System now owns 24,560 shares of the company’s stock worth $1,555,000 after purchasing an additional 23,064 shares in the last quarter. TD Waterhouse Canada Inc. acquired a new stake in Bandwidth during the 2nd quarter worth approximately $70,000. Wellington Management Group LLP raised its holdings in Bandwidth by 138.9% in the second quarter. Wellington Management Group LLP now owns 911,893 shares of the company’s stock valued at $57,723,000 after buying an additional 530,182 shares during the period. Finally, Globeflex Capital L P purchased a new position in Bandwidth in the second quarter valued at approximately $2,865,000. Hedge funds and other institutional investors own 68.53% of the company’s stock.

Bandwidth Stock Down 6.4%

BAND opened at $47.55 on Thursday. 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 firm has a market cap of $1.53 billion, a P/E ratio of -163.97 and a beta of 3.03. Bandwidth has a 52 week low of $12.50 and a 52 week high of $79.08. The business’s fifty day simple moving average is $56.33 and its 200 day simple moving average is $41.64.

Bandwidth (NASDAQ:BAND) last announced its earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.01. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The firm had revenue of $219.90 million during the quarter, compared to the consensus estimate of $217.62 million. The company’s 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, equities research analysts anticipate that Bandwidth will post 0.65 EPS for the current fiscal year.

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.