Bandwidth (NASDAQ:BAND) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• Bandwidth has been upgraded from a "buy" to a "strong-buy" rating by analysts at Wall Street Zen, reflecting increased confidence in the company's performance.
• The company reported $0.38 earnings per share for the last quarter, surpassing consensus estimates, and its revenue increased by 3.4% year-over-year.
• Insider trades indicate a 27.19% decrease in ownership for one insider following the sale of over 7,000 shares, though institutional investors continue to hold a substantial 68.53% stake in the company.

Wall Street Zen upgraded shares of Bandwidth (NASDAQ:BAND - Free Report) from a buy rating to a strong-buy rating in a research note published on Saturday.

Several other research firms have also recently commented on BAND. Wedbush restated an "outperform" rating on shares of Bandwidth in a report on Wednesday, September 17th. Needham & Company LLC restated a "buy" rating and issued a $20.00 price target on shares of Bandwidth in a report on Friday, June 13th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Bandwidth presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.80.

Bandwidth Price Performance

Bandwidth stock traded down $0.09 during midday trading on Friday, reaching $17.88. 2,978 shares of the company were exchanged, compared to its average volume of 287,561. 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 market capitalization of $538.90 million, a price-to-earnings ratio of -52.59 and a beta of 1.81. The firm's 50-day simple moving average is $15.10 and its 200-day simple moving average is $14.37. Bandwidth has a 1 year low of $11.33 and a 1 year high of $23.00.

Bandwidth (NASDAQ:BAND - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.32 by $0.06. The company 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%.The firm's revenue was up 3.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.29 EPS. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts anticipate that Bandwidth will post 0.22 EPS for the current year.

Insider Activity

In other news, CFO Daryl Raiford sold 14,143 shares of the business's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $15.47, for a total value of $218,792.21. Following the completion of the sale, the chief financial officer directly owned 90,395 shares in the company, valued at approximately $1,398,410.65. The trade was a 13.53% 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, insider Devin M. Krupka sold 7,166 shares of the business's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $18.00, for a total value of $128,988.00. Following the completion of the sale, the insider owned 19,192 shares of the company's stock, valued at $345,456. This trade represents a 27.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 73,077 shares of company stock worth $1,139,601. 6.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bandwidth

A number of institutional investors have recently made changes to their positions in BAND. Deutsche Bank AG increased its holdings in shares of Bandwidth by 61.7% in the 4th quarter. Deutsche Bank AG now owns 20,203 shares of the company's stock valued at $344,000 after acquiring an additional 7,707 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Bandwidth by 4.5% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,185 shares of the company's stock valued at $241,000 after purchasing an additional 608 shares during the period. Millennium Management LLC boosted its position in Bandwidth by 213.5% during the 4th quarter. Millennium Management LLC now owns 136,442 shares of the company's stock valued at $2,322,000 after purchasing an additional 92,915 shares during the period. Two Sigma Investments LP boosted its position in Bandwidth by 8.9% during the 4th quarter. Two Sigma Investments LP now owns 108,338 shares of the company's stock valued at $1,844,000 after purchasing an additional 8,813 shares during the period. Finally, Squarepoint Ops LLC boosted its position in Bandwidth by 49.8% during the 4th quarter. Squarepoint Ops LLC now owns 44,355 shares of the company's stock valued at $755,000 after purchasing an additional 14,754 shares during the period. 68.53% of the stock is currently owned by institutional investors.

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.