Bandwidth Inc. (NASDAQ:BAND) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Bandwidth, with five buy ratings, one hold and one sell; the average 12-month price target is $61.75.
• Bandwidth exceeded quarterly expectations, reporting $0.37 in EPS versus $0.36 expected and $219.9 million in revenue, up 22.2% year over year.
• The stock opened at $39.14, well below the analyst consensus target, while insiders sold 117,269 shares worth approximately $6.9 million over the past 90 days.

Shares of Bandwidth Inc. (NASDAQ:BAND - Get Free Report) have been given an average rating of "Moderate Buy" by the seven research firms that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and five have assigned a buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $61.75.

A number of equities research analysts have recently issued reports on BAND shares. Citigroup reiterated a "market outperform" rating on shares of Bandwidth in a research note on Monday, July 20th. Needham & Company LLC boosted their target price on shares of Bandwidth from $45.00 to $60.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. B. Riley Financial upped their price target on shares of Bandwidth from $55.00 to $85.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Zacks Research lowered shares of Bandwidth from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 3rd. Finally, Citizens Jmp increased their price target on shares of Bandwidth from $70.00 to $86.00 and gave the company a "market outperform" rating in a research note on Monday, July 20th.

Bandwidth Trading Up 0.8%

Shares of NASDAQ:BAND opened at $39.14 on Friday. Bandwidth has a one year low of $12.50 and a one year high of $79.08. The stock has a market capitalization of $1.25 billion, a PE ratio of -134.97 and a beta of 2.92. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 0.94. The company's 50-day moving average price is $61.34 and its two-hundred day moving average price is $35.70.

Bandwidth (NASDAQ:BAND - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.36 by $0.01. The firm had revenue of $219.90 million during the quarter, compared to analysts' expectations of $217.62 million. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The firm's revenue for the quarter 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. On average, equities analysts forecast that Bandwidth will post 0.53 EPS for the current fiscal year.

Insider Buying and Selling

In other Bandwidth news, CFO Daryl E. Raiford sold 4,228 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $64.15, for a total transaction of $271,226.20. Following the transaction, the chief financial officer owned 42,919 shares of the company's stock, valued at $2,753,253.85. The trade was a 8.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Devin M. Krupka sold 1,198 shares of the company's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $70,502.30. Following the completion of the sale, the insider owned 26,371 shares in the company, valued at $1,551,933.35. This represents a 4.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 117,269 shares of company stock worth $6,876,623 in the last 90 days. 5.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. UBS Group AG lifted its holdings in Bandwidth by 189.2% during the 4th quarter. UBS Group AG now owns 205,300 shares of the company's stock valued at $3,172,000 after purchasing an additional 134,309 shares during the last quarter. Bastion Asset Management Inc. bought a new position in Bandwidth during the first quarter worth $6,592,000. Nano Cap New Millennium Growth Fund L P bought a new position in Bandwidth during the fourth quarter worth $1,622,000. Walleye Capital LLC acquired a new position in shares of Bandwidth in the first quarter valued at $1,069,000. Finally, Assenagon Asset Management S.A. increased its holdings in shares of Bandwidth by 51.1% in the first quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company's stock valued at $8,765,000 after purchasing an additional 166,423 shares during the last quarter. 68.53% of the stock is currently owned by institutional investors.

About Bandwidth

Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth's solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.

Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.

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