Bandwidth (NASDAQ:BAND) Stock Falls 8.8% – What’s Next?

Bandwidth Inc. (NASDAQ:BAND) dropped 8.8% on Thursday. The company traded as low as $52.49 and last traded at $52.4090. 460,151 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 876,598 shares. The stock had previously closed at $57.47.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Citizens Jmp boosted their price target on Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research note on Monday, July 20th. Zacks Research downgraded Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. B. Riley Financial increased 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. Piper Sandler lifted their price target on shares of Bandwidth from $38.00 to $52.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 19th. Finally, Bank of America started coverage on shares of Bandwidth in a report on Wednesday, September 16th. They issued a “neutral” rating and a $60.00 price target on the stock. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Bandwidth currently has an average rating of “Hold” and a consensus price target of $59.83.

Bandwidth Stock Down 8.4%

The stock has a market cap of $1.69 billion, a P/E ratio of -181.24, a price-to-earnings-growth ratio of 5.25 and a beta of 3.01. The stock’s 50-day moving average is $51.67 and its 200-day moving average is $48.67. The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 0.87.

Bandwidth (NASDAQ:BAND) last issued its earnings results on Wednesday, July 29th. The company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.36 by $0.01. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The firm had revenue of $219.90 million for the quarter, compared to the consensus estimate of $217.62 million. The business’s revenue for the quarter was up 22.2% compared to the same quarter last year. 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, research analysts anticipate that Bandwidth Inc. will post 0.65 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Rebecca Bottorff sold 2,713 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 $133,343.95. Following the transaction, the insider directly owned 10,704 shares of the company’s stock, valued at $526,101.60. The trade was a 20.22% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Kade Ross sold 1,616 shares of the business’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $79,426.40. Following the completion of the transaction, the insider directly owned 48,071 shares in the company, valued at approximately $2,362,689.65. This represents a 3.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 23,550 shares of company stock valued at $1,154,782 over the last 90 days. Company insiders own 5.26% of the company’s stock.

Institutional Investors Weigh In On Bandwidth

Hedge funds have recently added to or reduced their stakes in the stock. Tidal Investments LLC bought a new position in Bandwidth in the 2nd quarter valued at $1,451,000. Bastion Asset Management Inc. acquired a new position in shares of Bandwidth during the first quarter valued at $6,592,000. Walleye Capital LLC bought a new position in Bandwidth in the first quarter valued at about $1,069,000. Arrowstreet Capital Limited Partnership boosted its holdings in Bandwidth by 299.5% in the first 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 last quarter. Finally, Hsbc Holdings PLC increased its position in Bandwidth by 51.5% in the first quarter. Hsbc Holdings PLC now owns 92,804 shares of the company’s stock worth $1,707,000 after purchasing an additional 31,565 shares during the period. Institutional investors own 68.53% of the company’s stock.

About Bandwidth

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and related services for businesses to build voice, messaging and emergency communications into their software and applications. Its platform is designed for enterprises, communications service providers and technology companies that need programmable communications capabilities.

The company’s offerings include voice calling, text messaging, toll-free and local phone numbers, authentication messaging, and 911 emergency services.