Bandwidth (NASDAQ:BAND) Sets New 1-Year High on Better-Than-Expected Earnings

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) shares hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $30.59 and last traded at $34.5820, with a volume of 69047 shares trading hands. The stock had previously closed at $24.20.

The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.07. Bandwidth had a negative net margin of 1.71% and a positive return on equity of 0.95%. The firm had revenue of $208.78 million during the quarter, compared to analyst estimates of $201.57 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.

Analysts Set New Price Targets

BAND has been the topic of several analyst reports. B. Riley Financial boosted their target price on Bandwidth from $20.00 to $27.00 and gave the stock a "buy" rating in a report on Friday, April 17th. Weiss Ratings restated a "sell (d-)" rating on shares of Bandwidth in a report on Monday, April 20th. Finally, Wall Street Zen lowered Bandwidth from a "buy" rating to a "hold" rating in a research report on Sunday, April 19th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $24.75.

Insider Activity at Bandwidth

In related news, CFO Daryl E. Raiford sold 16,100 shares of the firm's stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $15.19, for a total transaction of $244,559.00. Following the completion of the sale, the chief financial officer owned 36,645 shares of the company's stock, valued at $556,637.55. This trade represents a 30.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 6.20% of the stock is currently owned by insiders.

Institutional Trading of Bandwidth

Several institutional investors have recently added to or reduced their stakes in BAND. Vanguard Group Inc. raised its stake in shares of Bandwidth by 3.5% in the third quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company's stock worth $33,149,000 after purchasing an additional 67,428 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Bandwidth by 2.1% during the third quarter. Dimensional Fund Advisors LP now owns 1,464,976 shares of the company's stock valued at $24,423,000 after buying an additional 30,248 shares during the last quarter. Portolan Capital Management LLC increased its holdings in Bandwidth by 115.8% in the 3rd quarter. Portolan Capital Management LLC now owns 745,802 shares of the company's stock worth $12,433,000 after buying an additional 400,231 shares in the last quarter. State Street Corp raised its position in Bandwidth by 2.6% in the 4th quarter. State Street Corp now owns 649,426 shares of the company's stock worth $10,034,000 after buying an additional 16,654 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its position in Bandwidth by 10.5% in the 3rd quarter. Ameriprise Financial Inc. now owns 642,264 shares of the company's stock worth $10,707,000 after buying an additional 61,004 shares during the last quarter. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

Bandwidth Stock Up 44.4%

The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 0.62. The firm has a market cap of $1.10 billion, a P/E ratio of -80.43 and a beta of 2.03. The company's 50 day simple moving average is $17.70 and its 200-day simple moving average is $15.66.

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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