Bandwidth Inc. (NASDAQ:BAND) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Brokerages have given Bandwidth Inc. (NASDAQ:BAND) an average rating of “Moderate Buy”, with six firms covering the stock, including one sell rating, one hold, and four buy ratings.
• In recent insider activities, General Counsel Richard Brandon Asbill and CFO Daryl Raiford sold a combined total of over 16,000 shares, representing significant decreases in their ownership of the company's stock.
• Bandwidth reported earnings of $0.38 per share for the last quarter, exceeding analysts' expectations, and its quarterly revenue rose 3.4% year-over-year.

Shares of Bandwidth Inc. (NASDAQ:BAND - Get Free Report) have been assigned an average rating of "Moderate Buy" from the six ratings firms that are currently covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $20.80.

BAND has been the subject of several research analyst reports. JMP Securities reissued a "market outperform" rating and issued a $36.00 price objective on shares of Bandwidth in a research report on Thursday, May 15th. Needham & Company LLC reaffirmed a "buy" rating and issued a $20.00 target price on shares of Bandwidth in a research report on Friday, June 13th.

Insider Activity at Bandwidth

In related news, General Counsel Richard Brandon Asbill sold 1,852 shares of the business's stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $15.09, for a total value of $27,946.68. Following the completion of the sale, the general counsel directly owned 51,617 shares of the company's stock, valued at $778,900.53. The trade was a 3.46% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Daryl Raiford sold 14,143 shares of the business's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $15.47, for a total value of $218,792.21. Following the completion of the sale, the chief financial officer directly owned 90,395 shares of the company's stock, valued at $1,398,410.65. The trade was a 13.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 65,911 shares of company stock valued at $1,010,613 in the last three months. Corporate insiders own 6.50% of the company's stock.

Hedge Funds Weigh In On Bandwidth

A number of hedge funds have recently added to or reduced their stakes in BAND. Nuveen LLC purchased a new position in shares of Bandwidth in the 1st quarter worth approximately $7,916,000. AQR Capital Management LLC boosted its stake in shares of Bandwidth by 303.1% in the 1st quarter. AQR Capital Management LLC now owns 393,907 shares of the company's stock worth $5,160,000 after buying an additional 296,199 shares during the last quarter. Bridgeway Capital Management LLC purchased a new position in shares of Bandwidth in the 2nd quarter worth approximately $2,166,000. Archon Capital Management LLC boosted its stake in shares of Bandwidth by 48.3% in the 2nd quarter. Archon Capital Management LLC now owns 291,700 shares of the company's stock worth $4,638,000 after buying an additional 95,000 shares during the last quarter. Finally, Millennium Management LLC boosted its stake in shares of Bandwidth by 213.5% in the 4th quarter. Millennium Management LLC now owns 136,442 shares of the company's stock worth $2,322,000 after buying an additional 92,915 shares during the last quarter. Institutional investors and hedge funds own 68.53% of the company's stock.

Bandwidth Stock Down 2.6%

Shares of BAND opened at $15.18 on Thursday. The company has a market capitalization of $457.53 million, a PE ratio of -44.65 and a beta of 1.81. Bandwidth has a 12 month low of $11.33 and a 12 month high of $23.00. The stock's 50-day moving average price is $14.88 and its two-hundred day moving average price is $14.32. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 0.64.

Bandwidth (NASDAQ:BAND - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.06. Bandwidth had a positive return on equity of 1.43% and a negative net margin of 1.32%.The firm had revenue of $180.01 million during the quarter, compared to analyst estimates of $178.87 million. During the same period last year, the company posted $0.29 EPS. The business's quarterly revenue was up 3.4% on a year-over-year basis. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts anticipate that Bandwidth will post 0.22 EPS for the current year.

Bandwidth Company Profile

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth's APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.

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