Bandwidth (NASDAQ:BAND) Now Covered by Analysts at Bank of America

Key Points

• Bank of America initiated coverage of Bandwidth with a “neutral” rating and a $60 price target, implying approximately 19.8% upside from the prior close.
• Analyst sentiment is broadly positive, with five Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $59.83.
• Bandwidth’s latest quarter exceeded expectations, with $0.37 EPS and $219.9 million in revenue, up 22.2% year over year; however, insiders sold 23,550 shares worth about $1.15 million over the past 90 days.

Equities researchers at Bank of America began coverage on shares of Bandwidth (NASDAQ:BAND - Get Free Report) in a research note issued on Wednesday, Briefing.com reports. The firm set a "neutral" rating and a $60.00 price target on the stock. Bank of America's target price indicates a potential upside of 19.81% from the company's previous close.

A number of other research firms also recently commented on BAND. Piper Sandler increased their price objective on shares of Bandwidth from $38.00 to $52.00 and gave the company a "neutral" rating in a research note on Wednesday, August 19th. Citigroup restated a "market outperform" rating on shares of Bandwidth in a research note on Monday, July 20th. Zacks Research lowered Bandwidth from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 3rd. B. Riley Financial increased their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Finally, Weiss Ratings cut Bandwidth from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, August 27th. Five research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $59.83.

Bandwidth Stock Up 2.3%

Shares of NASDAQ:BAND opened at $50.08 on Wednesday. The company has a market capitalization of $1.61 billion, a P/E ratio of -172.69 and a beta of 3.03. Bandwidth has a 52-week low of $12.50 and a 52-week high of $79.08. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 0.87. The stock's fifty day simple moving average is $54.05 and its 200-day simple moving average is $43.83.

Bandwidth (NASDAQ:BAND - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The firm had revenue of $219.90 million for the quarter, compared to analyst estimates of $217.62 million. The firm'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 forecast that Bandwidth will post 0.65 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO David Morken sold 5,128 shares of the firm's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $252,041.20. Following the completion of the sale, the chief executive officer owned 6,702 shares of the company's stock, valued at $329,403.30. This trade represents a 43.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, General Counsel Richard Asbill sold 1,832 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $90,042.80. Following the sale, the general counsel owned 7,550 shares of the company's stock, valued at approximately $371,082.50. This represents a 19.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 23,550 shares of company stock worth $1,154,782. 5.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. TD Waterhouse Canada Inc. acquired a new stake in shares of Bandwidth in the second quarter worth $70,000. Integrated Wealth Concepts LLC bought a new position in shares of Bandwidth during the second quarter valued at $94,000. Diversified Trust Co bought a new stake in shares of Bandwidth in the 1st quarter worth about $184,000. IMC Chicago LLC acquired a new stake in shares of Bandwidth during the 1st quarter worth about $218,000. Finally, Corient Private Wealth LP bought a new position in Bandwidth during the 2nd quarter valued at about $238,000. Institutional investors own 68.53% of the company's stock.

About Bandwidth

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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