Bandwidth (NASDAQ:BAND) Stock Bumped Up to Buy by Wall Street Zen

Bandwidth (NASDAQ:BAND) was upgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday, Wall Street Zen reports.

A number of other research firms have also issued reports on BAND. Citizens Jmp upped their target price on shares of Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a report on Monday, July 20th. Needham & Company LLC restated a “buy” rating on shares of Bandwidth in a research report on Thursday, August 20th. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 3rd. Bank of America initiated coverage on shares of Bandwidth in a report on Wednesday, September 16th. They issued a “neutral” rating and a $60.00 price objective for the company. Finally, Piper Sandler raised their target price 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. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Bandwidth has an average rating of “Hold” and an average target price of $66.67.

Bandwidth Trading Down 10.9%

BAND stock opened at $47.34 on Friday. Bandwidth has a 12-month low of $12.50 and a 12-month high of $79.08. The business’s 50-day moving average is $51.54 and its 200 day moving average is $40.75. The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 0.87. The stock has a market cap of $1.52 billion, a price-to-earnings ratio of -394.47, a PEG ratio of 4.73 and a beta of 3.01.

Bandwidth (NASDAQ:BAND) last released its earnings results on Thursday, October 29th. The company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.03. The business had revenue of $234.02 million for the quarter, compared to the consensus estimate of $233.15 million. Bandwidth had a return on equity of 3.67% and a net margin of 1.01%. The company’s revenue for the quarter was up 21.9% on a year-over-year basis. On average, sell-side analysts anticipate that Bandwidth will post 0.64 EPS for the current fiscal year.

Insider Activity

In other Bandwidth news, COO Devesh Agarwal sold 4,869 shares of the business’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $49.15, for a total value of $239,311.35. Following the transaction, the chief operating officer directly owned 79,138 shares in the company, valued at $3,889,632.70. The trade was a 5.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Daryl E. Raiford sold 4,673 shares of the business’s stock in a transaction dated 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 in the company, valued at $1,761,142.80. The trade was a 11.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 25,050 shares of company stock worth $1,228,342. Insiders own 5.26% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Sterling Capital Management LLC increased its stake in Bandwidth by 850.0% during the third quarter. Sterling Capital Management LLC now owns 988 shares of the company’s stock worth $60,000 after acquiring an additional 884 shares during the last quarter. TD Waterhouse Canada Inc. acquired a new position in shares of Bandwidth in the 2nd quarter valued at $70,000. State of Alaska Department of Revenue lifted its stake in shares of Bandwidth by 43.1% in the 3rd quarter. State of Alaska Department of Revenue now owns 1,262 shares of the company’s stock valued at $76,000 after purchasing an additional 380 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Bandwidth during the 2nd quarter worth $94,000. Finally, Simplicity Wealth LLC purchased a new position in shares of Bandwidth during the 3rd quarter worth $202,000. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Bandwidth

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Quarterly results exceeded expectations. Bandwidth reported third-quarter revenue of $234.0 million, up 22% year over year, and adjusted EBITDA of approximately $34.8 million, up 43%. Adjusted EPS of $0.50 surpassed the $0.47 consensus estimate, while the company returned to GAAP profitability. Bandwidth Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Management maintained its full-year outlook and offered a constructive 2027 view. Bandwidth reaffirmed 2026 revenue guidance of $905 million to $910 million and adjusted EBITDA guidance of $124 million to $125 million. It also expects double-digit Cloud Communications revenue growth in 2027, supported by voice-usage demand. Bandwidth Revenue Reaches Record $234 Million in Third Quarter 2026
• Positive Sentiment: Some analysts remain bullish. A Seeking Alpha contributor reiterated a Buy rating, citing improving net revenue retention, accelerating fundamentals and what it considers an attractive valuation relative to growth. Bandwidth: Full Steam Ahead As Net Revenue Retention Soars
• Neutral Sentiment: Morgan Stanley raised its price target to $57 from $56 but kept an Equal Weight rating. The modest increase suggests limited near-term conviction despite additional implied upside. Morgan Stanley stock recommendations
• Neutral Sentiment: Bandwidth amended its credit agreement and expanded its board with technology executive Chip Schroeder. Neither announcement provided a clearly material change to the near-term earnings outlook. Bandwidth Appoints Chip Schroeder to Board of Directors
• Negative Sentiment: In-line guidance overshadowed the earnings beat. Investors appear to have expected a stronger forecast or additional upside after BAND’s sharp rally; the reaffirmed outlook was characterized as insufficient to support the stock’s elevated expectations. Bandwidth Sinks on In-Line Guidance Despite Q3 Beat
• Negative Sentiment: Reported insider-trading data showed 87 insider sales and no purchases over the past six months, which may reinforce profit-taking concerns following the stock’s significant advance.

About Bandwidth

Bandwidth Inc (NASDAQ:BAND) is a cloud communications company that provides application programming interfaces (APIs) and related network services for integrating voice, messaging and emergency communications into software applications. Its platform is designed for businesses, communications providers and technology companies that need to build communications capabilities into customer-facing products and internal workflows.

The company’s offerings include programmable voice, text messaging and toll-free messaging services, as well as emergency calling capabilities through its E911 solution.