Bandwidth (NASDAQ:BAND) CEO David Morken Sells 4,632 Shares of Stock

Bandwidth Inc. (NASDAQ:BAND) CEO David Morken sold 4,632 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $272,593.20. Following the completion of the sale, the chief executive officer owned 7,198 shares of the company’s stock, valued at $423,602.30. This represents a 39.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Bandwidth Stock Up 9.1%

BAND stock opened at $70.89 on Tuesday. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94. The stock has a market capitalization of $2.27 billion, a P/E ratio of -186.55 and a beta of 2.72. The business has a 50-day moving average of $34.21 and a 200-day moving average of $21.41. Bandwidth Inc. has a fifty-two week low of $12.50 and a fifty-two week high of $71.76.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.06. The firm had revenue of $208.78 million for the quarter, compared to analyst estimates of $201.58 million. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. On average, sell-side analysts anticipate that Bandwidth Inc. will post 0.55 earnings per share for the current fiscal year.

Key Headlines Impacting Bandwidth

Here are the key news stories impacting Bandwidth this week:

• Neutral Sentiment: A market note highlighted that Bandwidth shares had already surged sharply and were being watched as a potential momentum trade. Bandwidth (NASDAQ:BAND) Stock Price Up 10.2% – Time to Buy?
• Negative Sentiment: CEO David A. Morken sold 4,632 shares, CFO Daryl E. Raiford sold shares in two separate transactions, and other insiders including the COO, general counsel, and additional executives also sold stock. Insider selling can weigh on sentiment because it may signal management thinks the shares are fully valued after the recent run-up.
• Negative Sentiment: The sales were executed at prices around $58.85 to $64.15, suggesting insiders were willing to reduce holdings while the stock was trading near multiyear highs, which may add caution for traders despite the company’s recent strong earnings and upbeat guidance.

Analysts Set New Price Targets

BAND has been the topic of several recent research reports. Citigroup reissued an “outperform” rating on shares of Bandwidth in a report on Thursday, April 30th. Wall Street Zen downgraded Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 16th. Needham & Company LLC lifted their target price on Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a report on Thursday, May 14th. B. Riley Financial raised their price objective on Bandwidth from $20.00 to $27.00 and gave the stock a “buy” rating in a research report on Friday, April 17th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Bandwidth presently has a consensus rating of “Moderate Buy” and a consensus target price of $43.25.

Institutional Trading of Bandwidth

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC increased its holdings in Bandwidth by 183.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock worth $60,000 after purchasing an additional 2,445 shares in the last quarter. State of Wyoming bought a new stake in Bandwidth during the 3rd quarter worth approximately $71,000. Raymond James Financial Inc. bought a new stake in Bandwidth during the 2nd quarter worth approximately $85,000. Quantbot Technologies LP bought a new stake in Bandwidth during the 2nd quarter worth approximately $128,000. Finally, AlphaQuest LLC increased its holdings in Bandwidth by 29.1% during the 3rd quarter. AlphaQuest LLC now owns 10,139 shares of the company’s stock worth $169,000 after purchasing an additional 2,288 shares in the last quarter. 68.53% of the stock is owned by institutional investors.

About Bandwidth

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.