Bandwidth (NASDAQ:BAND) Stock Price Down 14.3% – Here’s Why

Bandwidth Inc. (NASDAQ:BAND)’s share price dropped 14.3% during trading on Thursday. The company traded as low as $42.43 and last traded at $40.1410. Approximately 86,164 shares were traded during mid-day trading, a decline of 90% from the average daily volume of 868,857 shares. The stock had previously closed at $46.82.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on BAND shares. Bank of America began coverage on Bandwidth in a research note on Wednesday, September 16th. They set a “neutral” rating and a $60.00 price target on the stock. B. Riley Financial increased their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Citigroup reiterated a “market outperform” rating on shares of Bandwidth in a research note on Monday, July 20th. Zacks Research downgraded shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Finally, Needham & Company LLC restated a “buy” rating on shares of Bandwidth in a research note on Thursday, August 20th. Four investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Bandwidth currently has a consensus rating of “Hold” and a consensus target price of $59.29.

Bandwidth Trading Down 13.5%

The stock has a 50-day simple moving average of $52.11 and a 200 day simple moving average of $50.89. 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 company has a market cap of $1.30 billion, a price-to-earnings ratio of -139.66, a PEG ratio of 3.99 and a beta of 3.01.

Bandwidth (NASDAQ:BAND) last posted its quarterly earnings results 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. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%. The business had revenue of $219.90 million for the quarter, compared to the consensus estimate of $217.62 million. The business’s revenue was up 22.2% on a year-over-year basis. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. As a group, equities research analysts predict that Bandwidth Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity at Bandwidth

In other news, COO Devesh Agarwal sold 4,869 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $49.15, for a total value of $239,311.35. Following the sale, the chief operating officer owned 79,138 shares in the company, valued at $3,889,632.70. This represents a 5.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David A. Morken sold 5,128 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $252,041.20. Following the completion of the sale, the chief executive officer owned 6,702 shares in the company, valued at $329,403.30. The trade was a 43.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 25,050 shares of company stock worth $1,228,342 in the last ninety days. 5.26% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tidal Investments LLC acquired a new stake in Bandwidth during the second quarter worth about $1,451,000. Bastion Asset Management Inc. acquired a new position in Bandwidth in the first quarter valued at approximately $6,592,000. Walleye Capital LLC acquired a new position in Bandwidth in the first quarter valued at approximately $1,069,000. Arrowstreet Capital Limited Partnership lifted its holdings in Bandwidth by 299.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock valued at $12,268,000 after acquiring an additional 516,117 shares during the period. Finally, Engineers Gate Manager LP acquired a new position in Bandwidth in the second quarter valued at approximately $2,218,000. 68.53% of the stock is currently owned by institutional investors and hedge funds.

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.