Bandwidth (NASDAQ:BAND) Downgraded by Wall Street Zen to Buy

Key Points

• Wall Street Zen downgraded Bandwidth from “strong-buy” to “buy,” but the overall analyst picture remains positive, with the stock carrying a Moderate Buy consensus and a consensus target price of $43.25.
• Recent earnings beat expectations: Bandwidth reported EPS of $0.38 versus estimates of $0.32 and revenue of $208.78 million versus expectations of $201.58 million, while also issuing FY 2026 and Q2 2026 guidance.
• Analysts have been raising price targets, including Citizens JMP lifting its target to $70 and Needham increasing its target to $60, though insider selling this week may be a mild caution sign for investors.

Bandwidth (NASDAQ:BAND - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Other research analysts have also recently issued research reports about the company. Citizens Jmp boosted their price target on Bandwidth from $45.00 to $70.00 and gave the stock a "market outperform" rating in a research note on Friday. B. Riley Financial upped their price objective on Bandwidth from $20.00 to $27.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Citigroup reiterated an "outperform" rating on shares of Bandwidth in a research report on Thursday, April 30th. Weiss Ratings reissued a "sell (d-)" rating on shares of Bandwidth in a report on Monday, April 20th. Finally, Needham & Company LLC boosted their price target on Bandwidth from $45.00 to $60.00 and gave the company a "buy" rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $43.25.

Bandwidth Trading Up 3.6%

NASDAQ BAND opened at $53.97 on Friday. The stock's 50 day moving average is $24.45 and its 200 day moving average is $17.95. The firm has a market capitalization of $1.73 billion, a PE ratio of -142.03 and a beta of 2.72. Bandwidth has a twelve month low of $12.50 and a twelve month high of $56.37. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37.

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, beating analysts' consensus estimates of $0.32 by $0.06. The business had revenue of $208.78 million during the quarter, compared to analysts' expectations of $201.58 million. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. Research analysts forecast that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Kade Ross sold 20,000 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $51.56, for a total value of $1,031,200.00. Following the sale, the insider directly owned 43,894 shares in the company, valued at approximately $2,263,174.64. This represents a 31.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Devesh Agarwal sold 8,251 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $52.11, for a total value of $429,959.61. Following the completion of the sale, the chief operating officer owned 76,414 shares in the company, valued at approximately $3,981,933.54. The trade was a 9.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 92,551 shares of company stock valued at $3,324,556. 5.26% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Renaissance Technologies LLC grew its stake in Bandwidth by 4.2% in the first quarter. Renaissance Technologies LLC now owns 644,981 shares of the company's stock worth $11,494,000 after purchasing an additional 26,081 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in 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 acquiring an additional 516,117 shares in the last quarter. Walleye Capital LLC bought a new stake in Bandwidth during the 1st quarter valued at $1,069,000. Dimensional Fund Advisors LP boosted its position in 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 acquiring an additional 91,812 shares in the last quarter. Finally, Bastion Asset Management Inc. bought a new stake in Bandwidth during the 1st quarter valued at $6,592,000. Institutional investors own 68.53% of the company's stock.

Key Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Citizens JMP raised its price target on Bandwidth from $45 to $70 and reiterated a market outperform rating, signaling improved confidence in the company’s growth outlook.
• Positive Sentiment: Needham & Company also boosted its price target from $45 to $60 and kept a buy rating, adding to the positive analyst momentum around BAND.
• Positive Sentiment: A separate report highlighted an even larger target increase for Bandwidth, reinforcing the view that analysts see more upside after the stock’s strong post-earnings run. Article: Bandwidth (BAND) price target increased by 86.73% to 46.66
• Neutral Sentiment: Bandwidth’s recent quarterly results were solid, with earnings and revenue both beating estimates, which has helped support the stock’s recent move higher.
• Negative Sentiment: COO Devesh Agarwal sold shares in two separate transactions this week, including 8,251 shares on May 14 and 11,749 shares on May 13. While insider sales do not always signal trouble, the timing may temper some investor enthusiasm.

Bandwidth Company Profile

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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