Bandwidth (NASDAQ:BAND) Trading 7.9% Higher – Still a Buy?

Shares of Bandwidth Inc. (NASDAQ:BAND) shot up 7.9% during trading on Thursday . The company traded as high as $50.59 and last traded at $50.5790. 146,295 shares changed hands during trading, a decline of 83% from the average daily volume of 867,558 shares. The stock had previously closed at $46.89.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on BAND. Piper Sandler increased their price target on shares of Bandwidth from $38.00 to $52.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 19th. Citigroup reissued a “market outperform” rating on shares of Bandwidth in a research report on Monday, July 20th. Needham & Company LLC restated a “buy” rating on shares of Bandwidth in a research note on Thursday, August 20th. Wall Street Zen cut Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Finally, Zacks Research downgraded Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $59.80.

Bandwidth Trading Down 5.5%

The stock has a 50 day moving average of $56.51 and a 200-day moving average of $40.69. The company has a market capitalization of $1.58 billion, a P/E ratio of -168.97 and a beta of 2.96. The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 0.87.

Bandwidth (NASDAQ:BAND) last released its earnings results on Wednesday, July 29th. The company reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.36 by $0.01. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The company had revenue of $219.90 million for the quarter, compared to analysts’ expectations of $217.62 million. The business’s revenue was up 22.2% on a year-over-year basis. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. On average, research analysts predict that Bandwidth Inc. will post 0.65 EPS for the current year.

Insider Buying and Selling at Bandwidth

In related news, CFO Daryl E. Raiford sold 4,228 shares of the company’s stock in a transaction on 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 transaction, the chief financial officer owned 42,919 shares of the company’s stock, valued at approximately $2,753,253.85. This represents a 8.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the stock in a transaction 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 sale, the general counsel owned 3,000 shares of the company’s stock, valued at $216,090. The trade was a 90.69% decrease in their position. The disclosure for this sale is available in the SEC filing. 5.26% of the stock is owned by company insiders.

Hedge Funds Weigh In On Bandwidth

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of Bandwidth by 3.5% in the third quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company’s stock worth $33,149,000 after acquiring an additional 67,428 shares during the period. Dimensional Fund Advisors LP raised its stake in Bandwidth by 6.3% during the 1st 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. Wellington Management Group LLP lifted its holdings in Bandwidth by 138.9% in the 2nd quarter. Wellington Management Group LLP now owns 911,893 shares of the company’s stock worth $57,723,000 after purchasing an additional 530,182 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted 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 worth $12,268,000 after purchasing an additional 516,117 shares in the last quarter. Finally, State Street Corp boosted its stake in Bandwidth by 2.6% in the 4th quarter. State Street Corp now owns 649,426 shares of the company’s stock worth $10,034,000 after purchasing an additional 16,654 shares during the period. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

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.