Bandwidth (NASDAQ:BAND) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Bandwidth to “Hold” from “Buy,” though analyst sentiment remains a “Moderate Buy” overall, with a consensus price target of $59.83.
• Bandwidth shares opened at $50.23 and have traded between $12.50 and $79.08 over the past year. The company’s latest quarterly results slightly exceeded expectations, with $0.37 EPS and $219.9 million in revenue, up 22.2% year over year.
• Company insiders sold 23,550 shares worth approximately $1.15 million over the past 90 days, while institutional investors own 68.53% of the stock.

Bandwidth (NASDAQ:BAND - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

A number of other research analysts also recently issued reports on the company. B. Riley Financial boosted their price objective on Bandwidth from $55.00 to $85.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Piper Sandler raised their price target on shares of Bandwidth from $38.00 to $52.00 and gave the company a "neutral" rating in a research report on Wednesday, August 19th. Bank of America initiated coverage on shares of Bandwidth in a report on Wednesday. They issued a "neutral" rating and a $60.00 price target on the stock. Zacks Research downgraded Bandwidth from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 3rd. Finally, Weiss Ratings downgraded Bandwidth from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, August 27th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $59.83.

Bandwidth Trading Down 0.6%

Shares of NASDAQ:BAND opened at $50.23 on Friday. Bandwidth has a 52-week low of $12.50 and a 52-week high of $79.08. The company has a 50-day simple moving average of $52.55 and a 200 day simple moving average of $44.36. The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.04 and a current ratio of 2.04. The company has a market capitalization of $1.62 billion, a P/E ratio of -173.21, a price-to-earnings-growth ratio of 4.41 and a beta of 3.03.

Bandwidth (NASDAQ:BAND - Get Free Report) last posted its earnings results 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 company had revenue of $219.90 million during the quarter, compared to the consensus estimate 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. Sell-side analysts forecast that Bandwidth will post 0.65 earnings per share for the current year.

Insider Buying and Selling

In other Bandwidth news, COO Devesh Agarwal sold 4,869 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 value of $239,311.35. Following the completion of the transaction, the chief operating officer owned 79,138 shares in the company, valued at approximately $3,889,632.70. This represents a 5.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kade Ross sold 1,616 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $49.15, for a total value of $79,426.40. Following the transaction, the insider directly owned 48,071 shares of the company's stock, valued at $2,362,689.65. This represents a 3.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,550 shares of company stock valued at $1,154,782 over the last 90 days. 5.26% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Bandwidth

Large investors have recently made changes to their positions in the business. Tidal Investments LLC purchased a new stake in shares of Bandwidth in the 2nd quarter worth approximately $1,451,000. Engineers Gate Manager LP purchased a new position in Bandwidth during the second quarter valued at $2,218,000. Integrated Wealth Concepts LLC purchased a new position in Bandwidth during the second quarter valued at $94,000. Corient Private Wealth LP bought a new stake in Bandwidth in the second quarter worth $238,000. Finally, TD Waterhouse Canada Inc. bought a new stake in Bandwidth in the second quarter worth $70,000. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

Bandwidth Company Profile

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and communications services for businesses, software developers and service providers. Its platform enables organizations to integrate voice calling, text messaging and other communications capabilities into applications, websites and business workflows.

The company's offerings include voice and messaging APIs, toll-free and local telephone numbers, emergency communications and 911 access, authentication and related communications tools.

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