Bandwidth (NASDAQ:BAND) Trading Down 4.9% – What’s Next?

Bandwidth Inc. (NASDAQ:BAND)’s stock price fell 4.9% during mid-day trading on Wednesday . The company traded as low as $48.43 and last traded at $49.25. Approximately 138,041 shares were traded during mid-day trading, a decline of 81% from the average session volume of 730,735 shares. The stock had previously closed at $51.78.

Analysts Set New Price Targets

BAND has been the subject of several recent research reports. Citizens Jmp increased their price target on Bandwidth from $45.00 to $70.00 and gave the stock a “market outperform” rating in a report on Friday, May 15th. Zacks Research raised shares of Bandwidth from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 7th. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research report on Monday, April 20th. Needham & Company LLC raised their target price on shares of Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Finally, Wall Street Zen lowered shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 16th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $43.25.

Bandwidth Trading Up 1.1%

The stock has a market cap of $1.65 billion, a PE ratio of -135.24 and a beta of 2.93. The business has a 50-day moving average of $45.84 and a 200 day moving average of $25.80. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.94 and a current ratio of 0.94.

Bandwidth (NASDAQ:BAND) last released its earnings results on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 company had revenue of $208.78 million for 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. Equities research analysts predict that Bandwidth Inc. will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling at Bandwidth

In other news, insider Rebecca Bottorff sold 9,425 shares of the firm’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $45.30, for a total transaction of $426,952.50. Following the sale, the insider owned 50,535 shares in the company, valued at $2,289,235.50. This trade represents a 15.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Kade Ross sold 20,000 shares of Bandwidth stock in a transaction on Monday, May 11th. The shares were sold at an average price of $51.56, for a total value of $1,031,200.00. Following the completion of the sale, the insider directly owned 43,894 shares of the company’s stock, valued at approximately $2,263,174.64. This represents a 31.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 127,269 shares of company stock valued at $7,192,523. 5.26% of the stock is owned by corporate insiders.

Institutional Trading of Bandwidth

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rhumbline Advisers increased its position in Bandwidth by 15.0% during the second quarter. Rhumbline Advisers now owns 40,927 shares of the company’s stock worth $651,000 after purchasing an additional 5,324 shares during the last quarter. Quantbot Technologies LP acquired a new position in Bandwidth in the second quarter valued at $128,000. Arrowstreet Capital Limited Partnership increased its stake in Bandwidth by 26.6% during the second quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company’s stock worth $5,933,000 after acquiring an additional 78,360 shares during the last quarter. Invesco Ltd. increased its stake in Bandwidth by 4.7% during the second quarter. Invesco Ltd. now owns 56,367 shares of the company’s stock worth $896,000 after acquiring an additional 2,532 shares during the last quarter. Finally, Jump Financial LLC purchased a new position in shares of Bandwidth in the 2nd quarter worth about $221,000. 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.