Bandwidth (NASDAQ:BAND) Reaches New 12-Month High Following Analyst Upgrade

Key Points

• Bandwidth reached a new 52-week high after B. Riley Financial raised its price target from $55 to $85 and kept a buy rating on the stock. Shares traded as high as $76.19, up sharply from the previous close of $70.49.
• Analyst sentiment is mostly positive, with five Buy ratings and an overall MarketBeat consensus of “Moderate Buy.” The average price target across analysts is $57.75, though recent target hikes suggest expectations have moved higher.
• Insiders have been selling shares in recent months, including the COO and general counsel, while institutional ownership remains high at 68.53%. The company also recently beat earnings and revenue estimates in its latest quarterly report.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) hit a new 52-week high on Thursday after B. Riley Financial raised their price target on the stock from $55.00 to $85.00. B. Riley Financial currently has a buy rating on the stock. Bandwidth traded as high as $76.19 and last traded at $76.5260, with a volume of 381061 shares traded. The stock had previously closed at $70.49.

A number of other equities analysts have also recently commented on BAND. Wall Street Zen cut Bandwidth from a "strong-buy" rating to a "buy" rating in a report on Sunday, June 28th. Zacks Research lowered Bandwidth from a "strong-buy" rating to a "hold" rating in a report on Friday, July 3rd. Needham & Company LLC raised their price target on Bandwidth from $45.00 to $60.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Citizens Jmp lifted their price objective on shares of Bandwidth from $45.00 to $70.00 and gave the stock a "market outperform" rating in a research note on Friday, May 15th. Finally, Citigroup reiterated an "outperform" rating on shares of Bandwidth in a research report on Thursday, April 30th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $57.75.

Insider Buying and Selling at Bandwidth

In other news, COO Devesh Agarwal sold 15,000 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $57.24, for a total value of $858,600.00. Following the transaction, the chief operating officer directly owned 61,414 shares in the company, valued at approximately $3,515,337.36. This represents a 19.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the firm's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $72.03, for a total transaction of $2,104,284.42. Following the completion of the transaction, the general counsel directly owned 3,000 shares in the company, valued at $216,090. This represents a 90.69% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 127,269 shares of company stock valued at $7,192,523. 5.26% of the stock is owned by company insiders.

Hedge Funds Weigh In On Bandwidth

A number of hedge funds and other institutional investors have recently modified their holdings of BAND. Rhumbline Advisers boosted its stake in Bandwidth by 15.0% in the second quarter. Rhumbline Advisers now owns 40,927 shares of the company's stock valued at $651,000 after acquiring an additional 5,324 shares in the last quarter. Quantbot Technologies LP purchased a new stake in shares of Bandwidth during the 2nd quarter valued at $128,000. Arrowstreet Capital Limited Partnership boosted its position in shares of Bandwidth by 26.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company's stock worth $5,933,000 after purchasing an additional 78,360 shares in the last quarter. Invesco Ltd. boosted its position in shares of Bandwidth by 4.7% in the 2nd quarter. Invesco Ltd. now owns 56,367 shares of the company's stock worth $896,000 after purchasing an additional 2,532 shares in the last quarter. Finally, Jump Financial LLC purchased a new position in Bandwidth during the 2nd quarter worth $221,000. 68.53% of the stock is currently owned by institutional investors.

Bandwidth Stock Up 8.1%

The company has a 50-day moving average of $56.53 and a 200-day moving average of $30.15. The company has a market capitalization of $2.44 billion, a price-to-earnings ratio of -202.25 and a beta of 2.92. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.37.

Bandwidth (NASDAQ:BAND - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.06. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.The business had revenue of $208.78 million during the quarter, compared to the consensus estimate of $201.58 million. 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, equities analysts predict that Bandwidth Inc. will post 0.55 earnings per share for the current fiscal year.

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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