Bandwidth (NASDAQ:BAND) Issues Earnings Results

Key Points

• Bandwidth reported earnings of $0.38 EPS, exceeding analysts' estimates of $0.32 EPS by $0.06, with revenue increasing by 3.4% year-over-year.
• Despite the earnings beat, Bandwidth's stock saw a mixed analyst outlook, with price targets ranging from $11 to $36 and an average consensus target price of $20.80.
• Insider trading activity included CFO Daryl Raiford selling 3,188 shares, reducing his ownership, while another insider, Rebecca Bottorff, sold 16,935 shares, indicating potential caution among company executives.

Bandwidth (NASDAQ:BAND - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $0.38 earnings per share for the quarter, beating analysts' consensus estimates of $0.32 by $0.06, Briefing.com reports. Bandwidth had a positive return on equity of 1.43% and a negative net margin of 1.32%. The business had revenue of $180.01 million during the quarter, compared to analysts' expectations of $178.87 million. During the same period in the previous year, the firm posted $0.29 earnings per share. The company's revenue was up 3.4% on a year-over-year basis. Bandwidth updated its Q3 2025 guidance to EPS and its FY 2025 guidance to EPS.

Bandwidth Stock Down 3.3%

NASDAQ BAND traded down $0.46 during trading on Friday, reaching $13.45. 398,651 shares of the company's stock were exchanged, compared to its average volume of 298,040. The stock has a market cap of $400.27 million, a P/E ratio of -39.56 and a beta of 1.84. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current ratio of 1.31. The company has a 50 day moving average price of $14.94 and a two-hundred day moving average price of $14.93. Bandwidth has a 1 year low of $11.33 and a 1 year high of $23.00.

Insider Activity at Bandwidth

In other Bandwidth news, insider Rebecca Bottorff sold 16,935 shares of Bandwidth stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $15.14, for a total transaction of $256,395.90. Following the completion of the sale, the insider directly owned 43,285 shares of the company's stock, valued at $655,334.90. The trade was a 28.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO David A. Morken sold 4,999 shares of Bandwidth stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $14.47, for a total value of $72,335.53. Following the sale, the chief executive officer owned 6,964 shares in the company, valued at $100,769.08. This trade represents a 41.79% decrease in their position. The disclosure for this sale can be found here. Insiders sold 44,596 shares of company stock worth $658,682 over the last three months. Company insiders own 6.50% of the company's stock.

Analysts Set New Price Targets

BAND has been the subject of a number of research reports. Needham & Company LLC reaffirmed a "buy" rating and issued a $20.00 price objective on shares of Bandwidth in a research note on Friday, June 13th. Robert W. Baird decreased their target price on Bandwidth from $20.00 to $15.00 and set a "neutral" rating for the company in a report on Thursday, May 8th. JMP Securities reiterated a "market outperform" rating and issued a $36.00 target price on shares of Bandwidth in a report on Thursday, May 15th. Finally, Morgan Stanley decreased their target price on Bandwidth from $18.00 to $11.00 and set an "underweight" rating for the company in a report on Wednesday, April 16th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company. According to MarketBeat, Bandwidth presently has a consensus rating of "Moderate Buy" and an average price target of $20.80.

About Bandwidth

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.