Bandwidth (NASDAQ:BAND) Stock Price Down 10.7% - Time to Sell?

Key Points

• Bandwidth shares fell 10.7% in mid-day trading to about $51.06, with trading volume below the average session level.
• Analyst sentiment remains broadly positive: five analysts rate the stock a Buy, one rates it Hold and one Sell, producing a “Moderate Buy” consensus and an average price target of $61.75.
• The company recently exceeded quarterly earnings and revenue estimates, but insiders sold 127,269 shares worth approximately $7.2 million over the last quarter, while Bandwidth continues to report a slightly negative net margin.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) shares fell 10.7% during mid-day trading on Tuesday . The stock traded as low as $52.08 and last traded at $51.0620. 607,223 shares were traded during trading, a decline of 27% from the average session volume of 837,110 shares. The stock had previously closed at $57.18.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Citigroup reiterated a "market outperform" rating on shares of Bandwidth in a research report on Monday, July 20th. Wall Street Zen downgraded shares of Bandwidth from a "strong-buy" rating to a "buy" rating in a research report on Sunday, June 28th. Citizens Jmp raised their target price on shares of Bandwidth from $70.00 to $86.00 and gave the company a "market outperform" rating in a research note on Monday, July 20th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Bandwidth in a research report on Friday, July 17th. Finally, Needham & Company LLC boosted their price target on shares of Bandwidth from $45.00 to $60.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Five investment 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 company currently has an average rating of "Moderate Buy" and a consensus price target of $61.75.

Bandwidth Trading Down 8.8%

The company has a market capitalization of $1.67 billion, a P/E ratio of -137.43 and a beta of 2.92. The business has a 50 day moving average price of $62.63 and a 200 day moving average price of $35.07. 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 released its quarterly earnings data 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. The business had revenue of $208.78 million for the quarter, compared to analyst estimates of $201.58 million. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. 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 anticipate that Bandwidth Inc. will post 0.55 EPS for the current year.

Insider Activity at Bandwidth

In related news, CEO David A. Morken sold 4,632 shares of the firm's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $58.85, for a total transaction of $272,593.20. Following the sale, the chief executive officer owned 7,198 shares of the company's stock, valued at approximately $423,602.30. This trade represents a 39.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, COO Devesh Agarwal sold 15,000 shares of Bandwidth stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total value of $858,600.00. Following the transaction, the chief operating officer 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 127,269 shares of company stock valued at $7,192,523. 5.26% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Bandwidth

Hedge funds have recently modified their holdings of the business. Rhumbline Advisers grew its position in shares of Bandwidth by 15.0% in the 2nd quarter. Rhumbline Advisers now owns 40,927 shares of the company's stock valued at $651,000 after purchasing an additional 5,324 shares during the period. Quantbot Technologies LP acquired a new stake in Bandwidth during the 2nd quarter worth approximately $128,000. Arrowstreet Capital Limited Partnership raised its holdings in Bandwidth by 26.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company's stock worth $5,933,000 after buying an additional 78,360 shares during the period. Invesco Ltd. raised its holdings in Bandwidth by 4.7% during the 2nd quarter. Invesco Ltd. now owns 56,367 shares of the company's stock worth $896,000 after buying an additional 2,532 shares during the period. Finally, Jump Financial LLC bought a new position in Bandwidth in the second quarter valued at approximately $221,000. Institutional investors and hedge funds own 68.53% of the company's stock.

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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