Bandwidth (NASDAQ:BAND) Stock Price Down 9.7% – Here’s What Happened

Bandwidth Inc. (NASDAQ:BAND)’s share price was down 9.7% on Wednesday. The company traded as low as $47.57 and last traded at $47.6340. Approximately 254,525 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 870,783 shares. The stock had previously closed at $52.73.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on BAND. Bank of America began coverage on Bandwidth in a research report on Wednesday, September 16th. They set a “neutral” rating and a $60.00 price target on the stock. Weiss Ratings raised shares of Bandwidth from a “sell (d+)” rating to a “hold (c)” rating in a report on Friday. Zacks Research downgraded Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Wall Street Zen lowered Bandwidth from a “buy” rating to a “hold” rating in a report on Saturday, September 19th. Finally, Citigroup reissued a “market outperform” rating on shares of Bandwidth in a research note on Monday, July 20th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $59.83.

Bandwidth Stock Performance

The firm’s 50 day moving average price is $52.53 and its 200-day moving average price is $49.69. The firm has a market capitalization of $1.50 billion, a PE ratio of -159.75, a price-to-earnings-growth ratio of 4.61 and a beta of 3.01. The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.04 and a current 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, beating analysts’ consensus estimates of $0.36 by $0.01. The business 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 company’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, research analysts expect that Bandwidth Inc. will post 0.65 EPS for the current year.

Insider Activity at Bandwidth

In related news, General Counsel Richard Asbill sold 1,832 shares of the business’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $90,042.80. Following the completion of the transaction, the general counsel owned 7,550 shares in the company, valued at approximately $371,082.50. The trade was a 19.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Daryl E. Raiford sold 4,673 shares of the company’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $229,677.95. Following the completion of the transaction, the chief financial officer owned 35,832 shares of the company’s stock, valued at $1,761,142.80. This represents a 11.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,550 shares of company stock worth $1,154,782 over the last ninety days. Company insiders own 5.26% of the company’s stock.

Hedge Funds Weigh In On Bandwidth

A number of large investors have recently bought and sold shares of the company. TD Waterhouse Canada Inc. purchased a new position in Bandwidth in the 2nd quarter worth approximately $70,000. Integrated Wealth Concepts LLC acquired a new position in Bandwidth in the second quarter valued at approximately $94,000. Diversified Trust Co bought a new stake in Bandwidth in the first quarter valued at $184,000. IMC Chicago LLC bought a new position in Bandwidth in the 1st quarter worth approximately $218,000. Finally, Corient Private Wealth LP bought a new position in shares of Bandwidth in the second quarter valued at approximately $238,000. Hedge funds and other institutional investors own 68.53% of the company’s stock.

Bandwidth Company Profile

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.