Bandwidth (NASDAQ:BAND) Shares Gap Up – Time to Buy?

Bandwidth Inc. (NASDAQ:BAND) gapped up before the market opened on Thursday . The stock had previously closed at $12.99, but opened at $15.24. Bandwidth shares last traded at $16.2040, with a volume of 590,182 shares.

More Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Company set FY‑2026 revenue growth target of ~16%, guided FY revenue to $864M–$884M (above Street consensus) and authorized an $80M share‑repurchase program — a clear cash-return signal that likely supports the rally. PR Newswire: Q4 & FY2025 Results
• Positive Sentiment: Q4 results showed resilience: revenue roughly in line with estimates while management cited cloud growth, accelerating enterprise AI adoption and improving margins — factors investors view as durable growth drivers. Zacks: Q4 Earnings Meet Estimates
• Neutral Sentiment: Company reported record fourth‑quarter adjusted EBITDA and free cash flow, supporting the buyback capacity — a positive operating datapoint but one that’s already reflected in guidance/pricing. PR Newswire: Q4 & FY2025 Results
• Neutral Sentiment: Earnings call transcripts and full disclosures are available for deeper review (useful for active investors parsing the AI commentary and customer trends). Seeking Alpha: Q4 Earnings Call Transcript
• Neutral Sentiment: Short‑interest entries in the feeds show anomalous “0 shares / NaN” data for February — appears to be a reporting error and provides no clear sell‑side pressure signal.
• Negative Sentiment: First‑quarter revenue guide ($200M–$203M) came in below prior Street estimates (~$207.9M), and Q4 revenue was slightly under consensus — reasons for caution despite the stronger FY outlook. Zacks: Q4 Matches Estimates

Analysts Set New Price Targets

A number of equities research analysts have commented on BAND shares. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research report on Wednesday, January 21st. Wall Street Zen lowered shares of Bandwidth from a “buy” rating to a “hold” rating in a report on Sunday, December 14th. Robert W. Baird set a $16.00 target price on shares of Bandwidth in a research note on Friday, October 31st. Finally, B. Riley Financial started coverage on shares of Bandwidth in a research note on Friday, January 23rd. They issued a “buy” rating and a $20.00 price target on the stock. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $20.60.

Bandwidth Price Performance

The company has a market cap of $461.49 million, a PE ratio of -35.16 and a beta of 2.15. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.39 and a current ratio of 1.39. The company’s 50-day simple moving average is $14.14 and its 200 day simple moving average is $14.90.

Insider Buying and Selling at Bandwidth

In related news, COO Devesh Agarwal sold 4,202 shares of the firm’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $14.06, for a total value of $59,080.12. Following the sale, the chief operating officer owned 77,482 shares of the company’s stock, valued at $1,089,396.92. This trade represents a 5.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Daryl E. Raiford sold 21,515 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $14.06, for a total transaction of $302,500.90. Following the transaction, the chief financial officer owned 98,535 shares of the company’s stock, valued at $1,385,402.10. This trade represents a 17.92% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 63,463 shares of company stock valued at $895,210. 6.50% of the stock is currently owned by company insiders.

Institutional Trading of Bandwidth

A number of institutional investors have recently bought and sold shares of the business. Portolan Capital Management LLC increased its holdings in shares of Bandwidth by 115.8% in the 3rd quarter. Portolan Capital Management LLC now owns 745,802 shares of the company’s stock valued at $12,433,000 after acquiring an additional 400,231 shares during the last quarter. CSM Advisors LLC acquired a new position in shares of Bandwidth in the 4th quarter valued at $5,342,000. AQR Capital Management LLC grew its position in shares of Bandwidth by 49.1% in the 2nd quarter. AQR Capital Management LLC now owns 587,305 shares of the company’s stock valued at $9,338,000 after buying an additional 193,398 shares during the last quarter. Assenagon Asset Management S.A. raised its stake in Bandwidth by 71.4% during the 3rd quarter. Assenagon Asset Management S.A. now owns 327,942 shares of the company’s stock worth $5,467,000 after acquiring an additional 136,624 shares in the last quarter. Finally, Bridgeway Capital Management LLC purchased a new stake in Bandwidth in the second quarter valued at $2,166,000. 68.53% of the stock is 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.