Bandwidth (NASDAQ:BAND) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Bandwidth (NASDAQ:BAND) was upgraded to “strong-buy” by Wall Street Zen, adding to a series of bullish analyst actions from firms including Zacks, Citizens JMP, Citigroup, B. Riley, and Needham.
• The company reported better-than-expected quarterly results, with EPS of $0.38 versus $0.32 expected and revenue of $208.78 million versus $201.58 million forecast. Bandwidth also issued FY 2026 EPS guidance of 1.770 to 1.830.
• Despite the positive analyst sentiment, insider selling has been notable, including a recent sale by General Counsel Richard Brandon Asbill and earlier sales by Kade Ross. Institutional ownership remains high at 68.53%.

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

BAND has been the topic of a number of other research reports. Zacks Research upgraded Bandwidth from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. Citizens Jmp increased their price target on shares of Bandwidth from $45.00 to $70.00 and gave the company a "market outperform" rating in a research report on Friday, May 15th. Citigroup reissued an "outperform" rating on shares of Bandwidth in a research note on Thursday, April 30th. B. Riley Financial boosted their price objective on shares of Bandwidth from $20.00 to $27.00 and gave the company a "buy" rating in a report on Friday, April 17th. Finally, Needham & Company LLC upped their target price on shares of Bandwidth from $45.00 to $60.00 and gave the company a "buy" rating in a research note on Thursday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $43.25.

Bandwidth Price Performance

Bandwidth stock opened at $51.39 on Friday. The business has a 50 day simple moving average of $46.51 and a 200 day simple moving average of $25.98. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94. The company has a market capitalization of $1.65 billion, a PE ratio of -135.24 and a beta of 2.93. Bandwidth has a one year low of $12.50 and a one year high of $75.98.

Bandwidth (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, beating analysts' consensus estimates of $0.32 by $0.06. The firm had revenue of $208.78 million for 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. On average, sell-side analysts forecast that Bandwidth will post 0.55 EPS for the current fiscal year.

Insider Transactions at Bandwidth

In other Bandwidth news, General Counsel Richard Brandon Asbill sold 29,214 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $72.03, for a total value of $2,104,284.42. Following the completion of the sale, the general counsel directly owned 3,000 shares in the company, valued at $216,090. This represents a 90.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Kade Ross sold 20,000 shares of the firm's stock in a transaction dated 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 position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 127,269 shares of company stock valued at $7,192,523. Insiders own 5.26% of the company's stock.

Institutional Trading of Bandwidth

Several hedge funds have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership lifted its stake in Bandwidth by 299.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company's stock valued at $12,268,000 after buying an additional 516,117 shares in the last quarter. Portolan Capital Management LLC increased its position in shares of Bandwidth by 115.8% during the third quarter. Portolan Capital Management LLC now owns 745,802 shares of the company's stock worth $12,433,000 after acquiring an additional 400,231 shares in the last quarter. Bastion Asset Management Inc. acquired a new stake in shares of Bandwidth during the first quarter worth $6,592,000. CSM Advisors LLC acquired a new stake in shares of Bandwidth during the fourth quarter worth $5,342,000. Finally, AQR Capital Management LLC lifted its position in Bandwidth by 49.1% in the 2nd quarter. AQR Capital Management LLC now owns 587,305 shares of the company's stock valued at $9,338,000 after acquiring an additional 193,398 shares in the last quarter. 68.53% of the stock is currently owned by institutional investors and hedge funds.

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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