Bandwidth (NASDAQ:BAND) Shares Up 7.9% – Should You Buy?

Bandwidth Inc. (NASDAQ:BAND) shares rose 7.9% during mid-day trading on Thursday . The company traded as high as $50.59 and last traded at $50.5790. Approximately 146,295 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 867,558 shares. The stock had previously closed at $46.89.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Needham & Company LLC reissued a “buy” rating on shares of Bandwidth in a report on Thursday, August 20th. Weiss Ratings upgraded shares of Bandwidth from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, August 13th. Zacks Research downgraded shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Citigroup reiterated a “market outperform” rating on shares of Bandwidth in a research note on Monday, July 20th. Finally, Citizens Jmp boosted their price target on shares of Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research report on Monday, July 20th. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $59.80.

Bandwidth Stock Performance

The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 0.87. The firm has a 50-day simple moving average of $56.55 and a 200 day simple moving average of $40.36. The company has a market cap of $1.65 billion, a price-to-earnings ratio of -176.42 and a beta of 2.96.

Bandwidth (NASDAQ:BAND) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.01. The business had revenue of $219.90 million during the quarter, compared to the consensus estimate of $217.62 million. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The firm’s revenue 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. On average, sell-side analysts predict that Bandwidth Inc. will post 0.65 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Devesh Agarwal sold 4,066 shares of the business’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $58.85, for a total value of $239,284.10. Following the transaction, the chief operating officer owned 68,579 shares in the company, valued at $4,035,874.15. The trade was a 5.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO David A. Morken sold 4,632 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $272,593.20. Following the sale, the chief executive officer directly owned 7,198 shares of the company’s stock, valued at approximately $423,602.30. This represents a 39.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 52,844 shares of company stock worth $3,517,318 over the last 90 days. 5.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of Bandwidth by 3.5% during the third quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company’s stock worth $33,149,000 after purchasing an additional 67,428 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Bandwidth by 6.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company’s stock valued at $27,647,000 after buying an additional 91,812 shares during the last quarter. Wellington Management Group LLP grew its position in Bandwidth by 138.9% in the 2nd quarter. Wellington Management Group LLP now owns 911,893 shares of the company’s stock valued at $57,723,000 after buying an additional 530,182 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Bandwidth by 299.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock valued at $12,268,000 after buying an additional 516,117 shares during the period. Finally, State Street Corp increased its stake in Bandwidth by 2.6% in the 4th quarter. State Street Corp now owns 649,426 shares of the company’s stock valued at $10,034,000 after buying an additional 16,654 shares during the period. Institutional investors and hedge funds own 68.53% of the company’s stock.

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.