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

Key Points

• Bandwidth has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, though several analysts maintain positive outlooks with target prices around $20.
• The company's stock has shown a significant range over the past year, with a low of $11.33 and a high of $23.00, while it currently trades at approximately $17.52.
• Recent insider trading activity includes the CFO selling 19,000 shares, marking a 14.78% decrease in their position, indicating potential concerns or profit-taking by top executives.

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

Several other equities analysts have also commented on BAND. Needham & Company LLC reiterated a "buy" rating and issued a $20.00 target price on shares of Bandwidth in a research note on Friday, June 13th. Wedbush reaffirmed an "outperform" rating on shares of Bandwidth in a research report on Wednesday, September 17th. Five research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.80.

Bandwidth Stock Performance

Shares of BAND stock opened at $17.52 on Friday. The stock has a fifty day moving average price of $15.24 and a 200 day moving average price of $14.45. The stock has a market cap of $528.07 million, a PE ratio of -51.53 and a beta of 1.81. Bandwidth has a 1 year low of $11.33 and a 1 year high of $23.00. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current ratio of 1.31.

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

Insiders Place Their Bets

In other news, CFO Daryl Raiford sold 19,000 shares of the business's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $15.50, for a total value of $294,500.00. Following the completion of the sale, the chief financial officer directly owned 109,538 shares in the company, valued at approximately $1,697,839. The trade was a 14.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Devesh Agarwal sold 2,132 shares of the company's stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $13.30, for a total value of $28,355.60. Following the sale, the chief operating officer directly owned 62,927 shares in the company, valued at approximately $836,929.10. This represents a 3.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 73,077 shares of company stock worth $1,139,601. Company insiders own 6.50% of the company's stock.

Institutional Investors Weigh In On Bandwidth

Institutional investors and hedge funds have recently made changes to their positions in the company. Tower Research Capital LLC TRC raised its position in shares of Bandwidth by 183.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company's stock valued at $60,000 after acquiring an additional 2,445 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Bandwidth during the 2nd quarter valued at approximately $85,000. US Bancorp DE raised its position in shares of Bandwidth by 11,281.3% during the 1st quarter. US Bancorp DE now owns 5,463 shares of the company's stock valued at $72,000 after acquiring an additional 5,415 shares in the last quarter. Harbor Capital Advisors Inc. acquired a new stake in shares of Bandwidth during the 1st quarter valued at approximately $72,000. Finally, GAMMA Investing LLC raised its position in shares of Bandwidth by 16,036.6% during the 1st quarter. GAMMA Investing LLC now owns 6,616 shares of the company's stock worth $87,000 after purchasing an additional 6,575 shares during the period. 68.53% of the stock is owned by institutional investors and hedge funds.

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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