Bandwidth (NASDAQ:BAND) Stock Rating Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Bandwidth to “Buy” from “Hold,” though the broader analyst consensus remains “Hold,” with four Buy ratings, five Hold ratings, and an average price target of $59.29.
• Bandwidth exceeded quarterly expectations, reporting $0.37 in EPS versus the $0.36 estimate and $219.9 million in revenue, up 22.2% year over year.
• Institutional investors own 68.53% of the company, while insiders have sold 23,550 shares worth approximately $1.15 million over the past 90 days.

Bandwidth (NASDAQ:BAND - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

BAND has been the topic of several other reports. Citigroup reaffirmed a "market outperform" rating on shares of Bandwidth in a report on Monday, July 20th. Weiss Ratings raised Bandwidth from a "sell (d+)" rating to a "hold (c)" rating in a report on Friday, October 9th. Needham & Company LLC restated a "buy" rating on shares of Bandwidth in a research report on Thursday, August 20th. Citizens Jmp raised their price objective on shares of Bandwidth from $70.00 to $86.00 and gave the stock a "market outperform" rating in a research note on Monday, July 20th. Finally, Piper Sandler raised 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. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Bandwidth presently has an average rating of "Hold" and a consensus price target of $59.29.

Bandwidth Price Performance

Shares of BAND stock opened at $43.34 on Friday. The company has a market capitalization of $1.39 billion, a P/E ratio of 310.00, a P/E/G ratio of 4.33 and a beta of 3.01. The company's 50-day simple moving average is $52.53 and its two-hundred day simple moving average is $50.08. Bandwidth has a one year low of $12.50 and a one 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 - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.36 by $0.01. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The firm had revenue of $219.90 million during the quarter, compared to analyst estimates of $217.62 million. The business's revenue for the quarter 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 analysts anticipate that Bandwidth will post 0.65 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Daryl Raiford sold 4,673 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $229,677.95. Following the sale, the chief financial officer directly owned 35,832 shares of the company's stock, valued at $1,761,142.80. This represents a 11.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, General Counsel Richard Asbill sold 1,832 shares of the firm'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 $90,042.80. Following the sale, the general counsel owned 7,550 shares in the company, valued at $371,082.50. This trade represents a 19.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 23,550 shares of company stock valued at $1,154,782. Insiders own 5.26% of the company's stock.

Hedge Funds Weigh In On Bandwidth

A number of hedge funds have recently bought and sold shares of BAND. Wellington Management Group LLP grew its holdings in Bandwidth by 138.9% in the second quarter. Wellington Management Group LLP now owns 911,893 shares of the company's stock valued at $57,723,000 after purchasing an additional 530,182 shares during the period. Dimensional Fund Advisors LP lifted its position in shares of Bandwidth by 6.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company's stock valued at $27,647,000 after buying an additional 91,812 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Bandwidth by 299.5% during 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. Renaissance Technologies LLC lifted its position in shares of Bandwidth by 4.2% during the 1st quarter. Renaissance Technologies LLC now owns 644,981 shares of the company's stock valued at $11,494,000 after buying an additional 26,081 shares in the last quarter. Finally, Assenagon Asset Management S.A. lifted its position in shares of Bandwidth by 51.1% during the 1st quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company's stock valued at $8,765,000 after buying an additional 166,423 shares in the last quarter. Hedge funds and other institutional investors own 68.53% of the company's stock.

Bandwidth Company Profile

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and related services for businesses to build voice, messaging and emergency communications into their software and applications. Its platform is designed for enterprises, communications service providers and technology companies that need programmable communications capabilities.

The company's offerings include voice calling, text messaging, toll-free and local phone numbers, authentication messaging, and 911 emergency services.

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