Bandwidth (NASDAQ:BAND) Trading 5% Higher – Still a Buy?

Bandwidth Inc. (NASDAQ:BAND)’s share price was up 5% during mid-day trading on Friday . The stock traded as high as $72.78 and last traded at $72.3580. Approximately 287,569 shares changed hands during trading, a decline of 65% from the average session volume of 820,309 shares. The stock had previously closed at $68.88.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. Citigroup reissued an “outperform” rating on shares of Bandwidth in a report on Thursday, April 30th. Needham & Company LLC boosted their price target on Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, May 14th. Wall Street Zen cut Bandwidth from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 28th. Finally, B. Riley Financial lifted their target price on Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $57.75.

Bandwidth Price Performance

The company has a market cap of $2.28 billion, a price-to-earnings ratio of -188.10 and a beta of 2.92. The company’s 50 day moving average price is $60.85 and its 200 day moving average price is $32.64. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.37.

Bandwidth (NASDAQ:BAND) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm 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. Equities research analysts forecast that Bandwidth Inc. will post 0.55 earnings per share for the current year.

Insider Activity

In other Bandwidth news, insider Devin M. Krupka sold 1,198 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $58.85, for a total transaction of $70,502.30. Following the transaction, the insider directly owned 26,371 shares in the company, valued at approximately $1,551,933.35. This represents a 4.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of Bandwidth stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $72.03, for a total transaction of $2,104,284.42. Following the sale, the general counsel owned 3,000 shares of the company’s stock, valued at approximately $216,090. The trade was a 90.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 127,269 shares of company stock valued at $7,192,523 in the last quarter. Insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Several large investors have recently bought and sold shares of BAND. Arrowstreet Capital Limited Partnership boosted its position in shares of 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 buying an additional 516,117 shares in the last quarter. Bastion Asset Management Inc. purchased a new position in Bandwidth during the 1st quarter valued at about $6,592,000. CSM Advisors LLC acquired a new position in Bandwidth during the fourth quarter worth about $5,342,000. AQR Capital Management LLC raised its position in Bandwidth by 49.1% during the second quarter. AQR Capital Management LLC now owns 587,305 shares of the company’s stock worth $9,338,000 after acquiring an additional 193,398 shares during the last quarter. Finally, Assenagon Asset Management S.A. lifted its holdings in shares of Bandwidth by 51.1% in the first quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company’s stock valued at $8,765,000 after purchasing an additional 166,423 shares in the last quarter. Institutional investors and hedge funds 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.