Bandwidth (NASDAQ:BAND) Trading Down 10.7% – What’s Next?

Bandwidth Inc. (NASDAQ:BAND)’s stock price fell 10.7% during trading on Tuesday . The company traded as low as $52.08 and last traded at $51.0620. 607,223 shares were traded during trading, a decline of 27% from the average session volume of 837,110 shares. The stock had previously closed at $57.18.

Wall Street Analyst Weigh In

Several research firms recently commented on BAND. Needham & Company LLC boosted their price objective on shares of Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, May 14th. Zacks Research cut Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. B. Riley Financial lifted their price target on Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Wall Street Zen lowered Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Finally, Citizens Jmp upped their price objective on Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Bandwidth presently has a consensus rating of “Moderate Buy” and an average price target of $61.75.

Bandwidth Trading Down 8.8%

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 fifty day moving average price of $62.63 and a 200 day moving average price of $35.07. The company has a market cap of $1.67 billion, a price-to-earnings ratio of -137.43 and a beta of 2.92.

Bandwidth (NASDAQ:BAND) last issued its 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 business had revenue of $208.78 million for the quarter, compared to the consensus estimate 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. As a group, equities analysts predict that Bandwidth Inc. will post 0.55 EPS for the current fiscal year.

Insider Activity at Bandwidth

In related news, CEO David A. Morken sold 4,632 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 transaction of $272,593.20. Following the completion of the transaction, the chief executive officer owned 7,198 shares in the company, valued at approximately $423,602.30. This trade represents a 39.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Devesh Agarwal sold 15,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total value of $858,600.00. Following the transaction, the chief operating officer directly owned 61,414 shares in the company, valued at approximately $3,515,337.36. This trade represents a 19.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 127,269 shares of company stock worth $7,192,523 over the last ninety days. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

A number of hedge funds have recently made changes to their positions in BAND. Tower Research Capital LLC TRC lifted its position in Bandwidth by 183.7% during the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock worth $60,000 after acquiring an additional 2,445 shares during the last quarter. Raymond James Financial Inc. acquired a new position in shares of Bandwidth in the second quarter valued at approximately $85,000. Quantbot Technologies LP acquired a new position in shares of Bandwidth in the second quarter valued at approximately $128,000. State of Wyoming increased its stake in shares of Bandwidth by 104.6% during the fourth quarter. State of Wyoming now owns 8,756 shares of the company’s stock worth $135,000 after purchasing 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 worth $157,000 after purchasing an additional 2,634 shares during the period. 68.53% of the stock is owned by institutional investors and hedge funds.

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.