Bandwidth (NASDAQ:BAND) Sees Large Volume Increase – Should You Buy?

Shares of Bandwidth Inc. (NASDAQ:BAND) saw unusually-high trading volume on Tuesday . Approximately 569,846 shares changed hands during trading, a decline of 17% from the previous session’s volume of 690,314 shares.The stock last traded at $50.2250 and had previously closed at $52.83.

Wall Street Analyst Weigh In

BAND has been the subject of a number of research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Bandwidth in a research note on Monday, April 20th. Citizens Jmp raised their target price on Bandwidth from $45.00 to $70.00 and gave the company a “market outperform” rating in a research note on Friday, May 15th. Zacks Research raised Bandwidth from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 7th. Needham & Company LLC raised their target price on Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Finally, B. Riley Financial raised their target price on Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a research note on Friday, April 17th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Bandwidth has a consensus rating of “Moderate Buy” and an average target price of $43.25.

Bandwidth Price Performance

The company has a 50 day moving average of $43.85 and a two-hundred day moving average of $25.01. The firm has a market cap of $1.64 billion, a P/E ratio of -134.99 and a beta of 2.93. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37.

Bandwidth (NASDAQ:BAND) last announced its earnings results on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.06. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.The business 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. Sell-side analysts expect that Bandwidth Inc. will post 0.55 EPS for the current year.

Insiders Place Their Bets

In related news, insider Kade Ross sold 20,000 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $51.56, for a total value of $1,031,200.00. Following the completion of the transaction, the insider owned 43,894 shares in the company, valued at $2,263,174.64. This trade represents a 31.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Rebecca Bottorff sold 9,425 shares of the stock in a transaction on Monday, May 4th. The shares were sold at an average price of $45.30, for a total value of $426,952.50. Following the completion of the transaction, the insider owned 50,535 shares of the company’s stock, valued at $2,289,235.50. This trade represents a 15.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 127,269 shares of company stock worth $7,192,523 over the last three months. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Hedge funds have recently modified their holdings of the business. Tower Research Capital LLC TRC boosted its position 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 acquiring an additional 2,445 shares during the period. Raymond James Financial Inc. acquired a new stake in Bandwidth during the 2nd quarter worth about $85,000. Quantbot Technologies LP acquired a new stake in Bandwidth during the 2nd quarter worth about $128,000. State of Wyoming lifted its holdings in shares of Bandwidth by 104.6% during the 4th quarter. State of Wyoming now owns 8,756 shares of the company’s stock valued at $135,000 after buying an additional 4,476 shares during the last quarter. Finally, Harbor Capital Advisors Inc. lifted its holdings in shares of Bandwidth by 35.1% during the 4th quarter. Harbor Capital Advisors Inc. now owns 10,143 shares of the company’s stock valued at $157,000 after buying an additional 2,634 shares during the last quarter. Hedge funds and other institutional investors own 68.53% of the company’s stock.

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.