David Morken Sells 5,128 Shares of Bandwidth (NASDAQ:BAND) Stock

Bandwidth Inc. (NASDAQ:BAND) CEO David Morken sold 5,128 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $252,041.20. Following the sale, the chief executive officer directly owned 6,702 shares in the company, valued at $329,403.30. The trade was a 43.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Bandwidth Trading Down 6.4%

Shares of BAND stock opened at $47.55 on Thursday. The company has a market cap of $1.53 billion, a PE ratio of -163.97 and a beta of 3.03. Bandwidth Inc. has a 1 year low of $12.50 and a 1 year high of $79.08. The stock’s 50 day simple moving average is $56.33 and its two-hundred day simple moving average is $41.64. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04.

Bandwidth (NASDAQ:BAND) last announced 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. The firm had revenue of $219.90 million during the quarter, compared to analysts’ expectations of $217.62 million. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The business’s revenue for the quarter 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. Research analysts predict that Bandwidth Inc. will post 0.65 earnings per share for the current year.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Sunday, June 28th. Piper Sandler upped their price target on shares of Bandwidth from $38.00 to $52.00 and gave the company a “neutral” rating in a report on Wednesday, August 19th. Needham & Company LLC reiterated a “buy” rating on shares of Bandwidth in a research note on Thursday, August 20th. Citigroup reiterated a “market outperform” rating on shares of Bandwidth in a report on Monday, July 20th. Finally, B. Riley Financial increased their price target on shares of Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $59.80.

Bandwidth News Summary

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Bandwidth’s latest reported quarter modestly exceeded expectations, with earnings of $0.37 per share versus the $0.36 consensus and revenue of $219.9 million versus $217.6 million expected. Revenue increased 22.2% year over year, while management maintained 2026 EPS guidance of $1.71–$1.79. Analysts’ consensus remains “Moderate Buy,” with an average price target of $59.80. Bandwidth earnings and analyst information
• Positive Sentiment: Institutional activity in the second quarter included several new positions, and Tower Research Capital increased its Bandwidth holding by 183.7%. Hedge funds and other institutions collectively own approximately 68.53% of the shares. Bandwidth institutional activity
• 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 ownership by only 2.5%, making it a relatively limited signal about management’s outlook. Bandwidth director sale
• Negative Sentiment: Seven insiders sold a combined approximately 22,050 shares worth $1.08 million on August 31. Sellers included CEO David Morken, CFO Daryl Raiford, COO Devesh Agarwal, General Counsel Richard Brandon Asbill, and other insiders. Several executives reduced their holdings by significant percentages, including the CEO’s 43.35% reduction and the CFO’s 11.54% reduction. The concentrated selling is likely pressuring BAND, even though insider sales can reflect personal financial planning rather than concerns about the business. Bandwidth SEC insider filing

Hedge Funds Weigh In On Bandwidth

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BAND. UBS Group AG increased its holdings in shares of Bandwidth by 189.2% in the fourth quarter. UBS Group AG now owns 205,300 shares of the company’s stock valued at $3,172,000 after purchasing an additional 134,309 shares during the period. Bastion Asset Management Inc. purchased a new stake in Bandwidth in the first quarter valued at approximately $6,592,000. Nano Cap New Millennium Growth Fund L P acquired a new position in Bandwidth in the 4th quarter worth approximately $1,622,000. Walleye Capital LLC purchased a new position in Bandwidth during the 1st quarter worth approximately $1,069,000. Finally, Arrowstreet Capital Limited Partnership lifted its stake in Bandwidth by 299.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock valued at $12,268,000 after acquiring an additional 516,117 shares during the period. 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.