Bandwidth (NASDAQ:BAND) Stock Price Down 8.4% - What's Next?

Key Points

• Bandwidth shares fell 8.4% to around $64.47 in Wednesday trading, with volume below average as the stock pulled back from a prior close of $70.36.
• Analyst sentiment remains mixed but generally positive: several firms raised price targets or reiterated bullish ratings, while Zacks downgraded the stock and Weiss kept a sell rating. The consensus rating is Moderate Buy with a price target of $61.75.
• The company recently beat quarterly EPS and revenue estimates, but insider selling has been notable, including sales by the CFO and general counsel. Institutional investors still hold the majority of shares, at 68.53%.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report)'s share price traded down 8.4% during mid-day trading on Wednesday . The company traded as low as $64.83 and last traded at $64.4710. Approximately 469,678 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 830,708 shares. The stock had previously closed at $70.36.

Wall Street Analyst Weigh In

Several brokerages have recently commented on BAND. Citizens Jmp boosted their price target on Bandwidth from $70.00 to $86.00 and gave the stock a "market outperform" rating in a research note on Monday. Needham & Company LLC raised their price objective on Bandwidth from $45.00 to $60.00 and gave the company a "buy" rating in a research note on Thursday, May 14th. Citigroup reaffirmed a "market outperform" rating on shares of Bandwidth in a report on Monday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Bandwidth in a research report on Friday. Finally, Zacks Research lowered Bandwidth from a "strong-buy" rating to a "hold" rating in a report on Friday, July 3rd. 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. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $61.75.

Bandwidth Trading Down 8.3%

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 cap of $2.07 billion, a price-to-earnings ratio of -169.65 and a beta of 2.92. The business's 50-day simple moving average is $62.09 and its 200-day simple moving average is $33.80.

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

Insider Transactions at Bandwidth

In other news, CFO Daryl E. Raiford sold 4,228 shares of the business's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $64.15, for a total value of $271,226.20. Following the completion of the transaction, the chief financial officer directly owned 42,919 shares of the company's stock, valued at $2,753,253.85. The trade was a 8.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the business's stock in a transaction on 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 transaction, the general counsel directly owned 3,000 shares of the company's stock, valued at approximately $216,090. This trade represents a 90.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 127,269 shares of company stock worth $7,192,523 in the last quarter. Insiders own 5.26% of the company's stock.

Institutional Trading of Bandwidth

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Empowered Funds LLC raised its stake in Bandwidth by 9.9% in the 1st quarter. Empowered Funds LLC now owns 154,432 shares of the company's stock valued at $2,752,000 after purchasing an additional 13,961 shares during the last quarter. Quantinno Capital Management LP boosted its stake in shares of Bandwidth by 248.2% during the 1st quarter. Quantinno Capital Management LP now owns 76,836 shares of the company's stock worth $1,369,000 after purchasing an additional 54,771 shares during the last quarter. Renaissance Technologies LLC grew its holdings in shares of Bandwidth by 4.2% during the first quarter. Renaissance Technologies LLC now owns 644,981 shares of the company's stock worth $11,494,000 after buying an additional 26,081 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Bandwidth by 299.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company's stock worth $12,268,000 after buying an additional 516,117 shares in the last quarter. Finally, Walleye Capital LLC acquired a new position in shares of Bandwidth in the first quarter valued at approximately $1,069,000. Hedge funds and other institutional investors own 68.53% of the company's stock.

About Bandwidth

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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