Bandwidth (NASDAQ:BAND) Shares Down 4.4% on Insider Selling

Bandwidth Inc. (NASDAQ:BAND)’s stock price dropped 4.4% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $48.69 and last traded at $48.5350. 154,902 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 869,299 shares. The stock had previously closed at $50.79.

Specifically, CEO David A. Morken sold 5,128 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $49.15, for a total value of $252,041.20. Following the transaction, the chief executive officer owned 6,702 shares in the company, valued at approximately $329,403.30. This represents a 43.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Daryl E. Raiford sold 4,673 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $229,677.95. Following the sale, the chief financial officer owned 35,832 shares in the company, valued at approximately $1,761,142.80. The trade was a 11.54% decrease in their position. The SEC filing for this sale provides additional information. In related news, COO Devesh Agarwal sold 4,869 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $239,311.35. Following the completion of the sale, the chief operating officer owned 79,138 shares of the company’s stock, valued at $3,889,632.70. This trade represents a 5.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Wall Street Analyst Weigh In

BAND has been the topic of several analyst reports. Citizens Jmp upped their price objective on Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research report on Monday, July 20th. Zacks Research lowered Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. Wall Street Zen downgraded Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Weiss Ratings cut Bandwidth from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, August 27th. Finally, Piper Sandler increased their price objective on Bandwidth from $38.00 to $52.00 and gave the company a “neutral” rating in a research report on Wednesday, August 19th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $59.80.

Trending Headlines about Bandwidth

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Bandwidth’s latest reported quarter modestly exceeded expectations, with EPS of $0.37 versus the $0.36 consensus and revenue of $219.9 million versus $217.6 million expected. Revenue rose 22.2% year over year, while full-year 2026 EPS guidance remains $1.71-$1.79. Bandwidth earnings information
• Positive Sentiment: Institutional activity was generally constructive in the second quarter: several firms opened new positions, and Tower Research Capital increased its holdings by 183.7%. Institutional investors and hedge funds own approximately 68.5% of the shares. Bandwidth institutional activity
• Neutral Sentiment: Analysts maintain a “Moderate Buy” consensus, with five Buy ratings and three Holds and an average price target of $59.80. However, the ratings cited are from prior weeks, so they may have limited impact on today’s trading. Bandwidth analyst ratings
• Neutral Sentiment: Director Lukas Roush sold 1,500 shares for $71,025 on August 27 under a pre-arranged Rule 10b5-1 plan. The sale reduced his position by only 2.5%, limiting its signaling value. Bandwidth director stock sale
• Negative Sentiment: Six Bandwidth insiders sold a combined 20,550 shares worth approximately $1.01 million on August 31. The sellers included CEO David Morken, CFO Daryl Raiford and COO Devesh Agarwal; several reduced their individual holdings by double-digit percentages. Including Roush’s earlier transaction, reported insider sales totaled roughly $1.08 million. The concentrated selling—particularly by top executives—is the clearest near-term negative catalyst, although insider sales can reflect personal financial planning rather than concerns about the business. Bandwidth SEC insider filing

Bandwidth Stock Down 4.4%

The stock has a market cap of $1.56 billion, a PE ratio of -167.67 and a beta of 2.96. The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.04 and a current ratio of 2.04. The company’s 50-day moving average price is $56.42 and its 200 day moving average price is $41.39.

Bandwidth (NASDAQ:BAND) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.01. The company had revenue of $219.90 million for the quarter, compared to the consensus estimate of $217.62 million. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The company’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. As a group, analysts forecast that Bandwidth Inc. will post 0.65 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC grew its holdings in Bandwidth by 183.7% during the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock valued at $60,000 after purchasing an additional 2,445 shares during the period. TD Waterhouse Canada Inc. bought a new stake in Bandwidth during the second quarter valued at about $70,000. Raymond James Financial Inc. purchased a new position in shares of Bandwidth in the second quarter valued at about $85,000. Quantbot Technologies LP purchased a new position in shares of Bandwidth in the second quarter valued at about $128,000. Finally, State of Wyoming boosted its stake in shares of Bandwidth by 104.6% in the fourth quarter. State of Wyoming now owns 8,756 shares of the company’s stock worth $135,000 after acquiring an additional 4,476 shares during the period. 68.53% of the stock is currently owned by 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.