Bandwidth (NASDAQ:BAND) Trading Up 6.2% – Still a Buy?

Shares of Bandwidth Inc. (NASDAQ:BAND) traded up 6.2% on Wednesday . The stock traded as high as $46.45 and last traded at $46.3350. Approximately 122,677 shares changed hands during trading, a decline of 86% from the average daily volume of 862,263 shares. The stock had previously closed at $43.62.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Sunday, June 28th. Citigroup reiterated a “market outperform” rating on shares of Bandwidth in a report on Monday, July 20th. Piper Sandler boosted their target price on Bandwidth from $38.00 to $52.00 and gave the company a “neutral” rating in a research report on Wednesday, August 19th. B. Riley Financial upped their price target on Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Finally, Citizens Jmp raised their price target on Bandwidth from $70.00 to $86.00 and gave the stock 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 given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $59.80.

Bandwidth Price Performance

The company’s 50-day simple moving average is $54.72 and its 200 day simple moving average is $43.03. The company has a market cap of $1.66 billion, a PE ratio of -178.00 and a beta of 3.03. 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 posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.01. The business had revenue of $219.90 million for the quarter, compared to analyst estimates of $217.62 million. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The business’s quarterly 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 other news, General Counsel Richard Asbill sold 1,832 shares of Bandwidth stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $49.15, for a total value 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. This trade represents a 19.53% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO David A. Morken sold 5,128 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $252,041.20. Following the transaction, the chief executive officer directly owned 6,702 shares of the company’s stock, valued at approximately $329,403.30. This represents a 43.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 23,550 shares of company stock worth $1,154,782 over the last three months. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Large investors have recently made changes to their positions in the company. UBS Group AG increased its stake in Bandwidth by 189.2% in the fourth quarter. UBS Group AG now owns 205,300 shares of the company’s stock valued at $3,172,000 after purchasing an additional 134,309 shares during the last quarter. Bastion Asset Management Inc. acquired a new stake in Bandwidth during the first quarter worth approximately $6,592,000. Nano Cap New Millennium Growth Fund L P purchased a new stake in shares of Bandwidth during the 4th quarter worth approximately $1,622,000. Walleye Capital LLC purchased a new stake in shares of Bandwidth during the 1st quarter worth approximately $1,069,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of 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 in the last quarter. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

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.