Bandwidth Inc. (NASDAQ:BAND) Short Interest Up 127.4% in June

Key Points

• Bandwidth’s short interest surged 127.4% in June to 3.5 million shares, with about 11.6% of the float sold short and a days-to-cover ratio of 1.8.
• The stock was trading up 2.7% at $75.77, near its 52-week high of $79.08, while the company reported better-than-expected quarterly results and raised FY 2026 guidance.
• Analysts remain mixed but generally constructive, with a Moderate Buy consensus target of $57.75; meanwhile, insiders have been selling shares and institutions have increased their holdings in recent quarters.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) was the target of a large growth in short interest in the month of June. As of June 30th, there was short interest totaling 3,504,208 shares, a growth of 127.4% from the June 15th total of 1,540,791 shares. Approximately 11.6% of the shares of the company are sold short. Based on an average daily volume of 1,966,359 shares, the days-to-cover ratio is currently 1.8 days.

Bandwidth Trading Up 2.7%

BAND opened at $75.77 on Wednesday. Bandwidth has a twelve month low of $12.50 and a twelve month high of $79.08. The company has a 50-day simple moving average of $59.96 and a 200 day simple moving average of $31.86. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37. The stock has a market capitalization of $2.43 billion, a price-to-earnings ratio of -199.39 and a beta of 2.92.

Bandwidth (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.32 by $0.06. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. The firm had revenue of $208.78 million for the quarter, compared to the consensus estimate of $201.58 million. Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. Analysts predict that Bandwidth will post 0.55 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on BAND. Wall Street Zen cut shares of Bandwidth from a "strong-buy" rating to a "buy" rating in a research note on Sunday, June 28th. Weiss Ratings restated a "sell (d-)" rating on shares of Bandwidth in a research report on Monday, April 20th. B. Riley Financial raised their target price on shares of Bandwidth from $55.00 to $85.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. Zacks Research downgraded shares of Bandwidth from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 3rd. Finally, Citigroup reiterated an "outperform" rating on shares of Bandwidth in a research note on Thursday, April 30th. Five analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $57.75.

Insiders Place Their Bets

In other news, General Counsel Richard Brandon Asbill sold 29,214 shares of Bandwidth stock in a transaction on Friday, June 5th. The stock was sold at an average price of $72.03, for a total transaction of $2,104,284.42. Following the completion of the sale, the general counsel owned 3,000 shares of the company's stock, valued at approximately $216,090. This trade represents a 90.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Devesh Agarwal sold 4,066 shares of the business's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $58.85, for a total transaction of $239,284.10. Following the completion of the sale, the chief operating officer directly owned 68,579 shares of the company's stock, valued at approximately $4,035,874.15. The trade was a 5.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 127,269 shares of company stock worth $7,192,523 over the last three months. 5.26% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC boosted its holdings in shares of Bandwidth by 183.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company's stock valued at $60,000 after purchasing an additional 2,445 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of Bandwidth in the 2nd quarter valued at $85,000. Quantbot Technologies LP acquired a new position in shares of Bandwidth during the 2nd quarter worth $128,000. State of Wyoming raised its holdings in shares of Bandwidth by 104.6% during the 4th quarter. State of Wyoming now owns 8,756 shares of the company's stock worth $135,000 after buying an additional 4,476 shares in the last quarter. Finally, Harbor Capital Advisors Inc. lifted its position in shares of Bandwidth by 35.1% during the 4th quarter. Harbor Capital Advisors Inc. now owns 10,143 shares of the company's stock worth $157,000 after buying an additional 2,634 shares during the last quarter. 68.53% of the stock is currently owned by institutional investors and hedge funds.

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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