Bandwidth (NASDAQ:BAND) Stock Rating Upgraded 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 research note issued to investors on Saturday, Wall Street Zen reports.

BAND has been the subject of a number of other reports. Needham & Company LLC reiterated a “buy” rating on shares of Bandwidth in a report on Thursday, August 20th. Citigroup reaffirmed a “market outperform” rating on shares of Bandwidth in a research report on Friday. Piper Sandler boosted their price objective 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. B. Riley Financial increased their target price 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. Finally, Weiss Ratings downgraded shares of Bandwidth from a “hold (c)” rating to a “sell (d+)” rating in a research note on Friday, October 23rd. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Bandwidth presently has a consensus rating of “Hold” and a consensus price target of $66.67.

Bandwidth Trading Down 10.9%

Shares of BAND stock opened at $47.34 on Friday. The company has a market cap of $1.52 billion, a PE ratio of -394.47, a price-to-earnings-growth ratio of 4.73 and a beta of 3.01. The stock’s 50 day simple moving average is $51.54 and its two-hundred day simple moving average is $40.75. Bandwidth has a 1 year low of $12.50 and a 1 year high of $79.08. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04.

Bandwidth (NASDAQ:BAND) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.03. The firm 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%. Bandwidth’s revenue was up 21.9% on a year-over-year basis. Research analysts predict that Bandwidth will post 0.64 earnings per share for the current year.

Insider Activity at Bandwidth

In other Bandwidth news, COO Devesh Agarwal sold 4,869 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $239,311.35. Following the sale, the chief operating officer directly owned 79,138 shares of the company’s stock, valued at approximately $3,889,632.70. This trade represents a 5.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO David A. Morken sold 5,128 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 $252,041.20. Following the completion of the transaction, the chief executive officer directly owned 6,702 shares of the company’s stock, valued at approximately $329,403.30. This trade represents a 43.35% decrease in their position. The SEC filing for this sale provides additional information. 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.

Hedge Funds Weigh In On Bandwidth

Several institutional investors have recently made changes to their positions in the company. Chicago Partners Investment Group LLC acquired a new stake in Bandwidth in the third quarter valued at approximately $230,000. Ascent Group LLC acquired a new position in shares of Bandwidth during the 3rd quarter worth approximately $287,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Bandwidth during the 3rd quarter worth approximately $425,000. Simplicity Wealth LLC purchased a new position in shares of Bandwidth during the 3rd quarter valued at approximately $202,000. Finally, Sterling Capital Management LLC lifted its position in shares of Bandwidth by 850.0% during the 3rd quarter. Sterling Capital Management LLC now owns 988 shares of the company’s stock valued at $60,000 after buying an additional 884 shares in the last quarter. 68.53% of the stock is owned by hedge funds and other institutional investors.

Bandwidth News Summary

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.

Bandwidth Company Profile

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.