Bandwidth (NASDAQ:BAND) Stock Price Up 4.9% - Should You Buy?

Key Points

• Bandwidth Inc. (NASDAQ:BAND) shares increased by 4.9% to $17.33 after previously closing at $16.52, with trading volume significantly down at 38,044 shares.
• Analysts have set a consensus rating of "Moderate Buy" for Bandwidth, with an average target price of $20.80, as several firms reaffirmed their buy ratings.
• Insider trading was reported with the CFO selling 19,000 shares and other insiders also decreasing their positions, indicating potential concerns despite strong quarterly earnings.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) shot up 4.9% on Wednesday . The company traded as high as $17.38 and last traded at $17.33. 38,044 shares were traded during mid-day trading, a decline of 87% from the average session volume of 286,277 shares. The stock had previously closed at $16.52.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on BAND. Needham & Company LLC restated a "buy" rating and issued a $20.00 target price on shares of Bandwidth in a research note on Friday, June 13th. Wedbush restated an "outperform" rating on shares of Bandwidth in a research note on Wednesday. Finally, Wall Street Zen upgraded Bandwidth from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $20.80.

Bandwidth Stock Down 3.0%

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.31 and a quick ratio of 1.31. The stock has a market cap of $528.66 million, a PE ratio of 134.92 and a beta of 1.81. The business has a fifty day moving average of $15.04 and a 200-day moving average of $14.35.

Bandwidth (NASDAQ:BAND - Get Free Report) last posted its earnings results on Tuesday, July 29th. The company reported $0.38 earnings per share for the quarter, topping analysts' consensus estimates of $0.32 by $0.06. Bandwidth had a positive return on equity of 1.43% and a negative net margin of 1.32%.The company had revenue of $180.01 million during the quarter, compared to analyst estimates of $178.87 million. During the same quarter in the prior year, the business earned $0.29 earnings per share. Bandwidth's revenue was up 3.4% on a year-over-year basis. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts anticipate that Bandwidth Inc. will post 0.22 earnings per share for the current year.

Insider Transactions at Bandwidth

In related news, CFO Daryl Raiford sold 14,143 shares of the business's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $15.47, for a total transaction of $218,792.21. Following the completion of the transaction, the chief financial officer owned 90,395 shares in the company, valued at approximately $1,398,410.65. The trade was a 13.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Devesh Agarwal sold 1,745 shares of the business's stock in a transaction on Friday, August 29th. The shares were sold at an average price of $15.09, for a total transaction of $26,332.05. Following the completion of the sale, the chief operating officer directly owned 67,263 shares of the company's stock, valued at approximately $1,014,998.67. This trade represents a 2.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 73,077 shares of company stock valued at $1,139,601 in the last ninety days. 6.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC increased its holdings in Bandwidth by 53.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 21,876 shares of the company's stock valued at $287,000 after buying an additional 7,661 shares in the last quarter. CWM LLC boosted its position in Bandwidth by 326.8% during the first quarter. CWM LLC now owns 7,460 shares of the company's stock worth $98,000 after acquiring an additional 5,712 shares during the last quarter. Two Sigma Investments LP boosted its position in Bandwidth by 8.9% during the fourth quarter. Two Sigma Investments LP now owns 108,338 shares of the company's stock worth $1,844,000 after acquiring an additional 8,813 shares during the last quarter. Nuveen LLC acquired a new position in shares of Bandwidth in the 1st quarter valued at $7,916,000. Finally, AQR Capital Management LLC increased its position in Bandwidth by 303.1% during the 1st quarter. AQR Capital Management LLC now owns 393,907 shares of the company's stock worth $5,160,000 after purchasing an additional 296,199 shares in the last quarter. 68.53% of the stock is owned by hedge funds and other institutional investors.

Bandwidth Company Profile

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth's APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.