Bandwidth (NASDAQ:BAND) Shares Down 6.1% – Here’s Why

Shares of Bandwidth Inc. (NASDAQ:BAND) dropped 6.1% during trading on Wednesday . The company traded as low as $57.06 and last traded at $57.4210. Approximately 274,111 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 604,376 shares. The stock had previously closed at $61.18.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Zacks Research upgraded shares of Bandwidth from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 7th. Wall Street Zen lowered shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 16th. Citigroup restated an “outperform” rating on shares of Bandwidth in a report on Thursday, April 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a report on Monday, April 20th. Finally, B. Riley Financial raised their price target on shares of Bandwidth from $20.00 to $27.00 and gave the stock a “buy” rating in a report on Friday, April 17th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $43.25.

Bandwidth Stock Up 8.3%

The company has a market capitalization of $2.00 billion, a PE ratio of -163.99 and a beta of 2.72. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.37. The stock’s fifty day moving average is $32.10 and its two-hundred day moving average is $20.66.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $208.78 million during the quarter, compared to analyst estimates 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. As a group, analysts predict that Bandwidth Inc. will post 0.55 EPS for the current year.

Insider Transactions at Bandwidth

In other Bandwidth news, COO Devesh Agarwal sold 15,000 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total transaction of $858,600.00. Following the completion of the transaction, the chief operating officer owned 61,414 shares of the company’s stock, valued at approximately $3,515,337.36. This trade represents a 19.63% 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, CFO Daryl E. Raiford sold 17,026 shares of the firm’s stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $15.47, for a total value of $263,392.22. Following the transaction, the chief financial officer directly owned 52,745 shares of the company’s stock, valued at $815,965.15. This represents a 24.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 107,551 shares of company stock worth $4,183,156. Corporate insiders own 5.26% of the company’s stock.

Hedge Funds Weigh In On Bandwidth

Institutional investors and hedge funds have recently modified their holdings of the stock. Tower Research Capital LLC TRC increased its holdings in shares of 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 acquiring an additional 2,445 shares in the last quarter. State of Wyoming bought a new position in shares of Bandwidth during the third quarter valued at $71,000. Raymond James Financial Inc. bought a new position in shares of Bandwidth during the second quarter valued at $85,000. Quantbot Technologies LP bought a new position in shares of Bandwidth during the second quarter valued at $128,000. Finally, Harbor Capital Advisors Inc. increased its holdings in shares of Bandwidth by 35.1% during the fourth quarter. Harbor Capital Advisors Inc. now owns 10,143 shares of the company’s stock valued at $157,000 after acquiring an additional 2,634 shares in the last quarter. 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.