Bandwidth (NASDAQ:BAND) Trading Up 4.9% - Here's What Happened

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) was up 4.9% during trading on Wednesday . The company traded as high as $17.38 and last traded at $17.33. Approximately 38,044 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 286,277 shares. The stock had previously closed at $16.52.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on BAND shares. Needham & Company LLC reaffirmed a "buy" rating and set a $20.00 target price on shares of Bandwidth in a research report on Friday, June 13th. Wedbush reaffirmed an "outperform" rating on shares of Bandwidth in a research report on Wednesday. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $20.80.

Bandwidth Trading Down 1.9%

The firm has a fifty day moving average of $15.01 and a two-hundred day moving average of $14.35. The company has a market cap of $534.70 million, a PE ratio of -52.17 and a beta of 1.81. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 0.64.

Bandwidth (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. 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 1.43% 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 last year, the firm posted $0.29 EPS. The firm's revenue for the quarter was up 3.4% on a year-over-year basis. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts predict that Bandwidth Inc. will post 0.22 EPS for the current year.

Insider Buying and Selling

In other Bandwidth news, insider Devin M. Krupka sold 7,166 shares of the firm's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $18.00, for a total value of $128,988.00. Following the completion of the transaction, the insider owned 19,192 shares in the company, valued at $345,456. This trade represents a 27.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Devesh Agarwal sold 1,745 shares of the firm's stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $15.09, for a total value of $26,332.05. Following the completion of the transaction, the chief operating officer owned 67,263 shares of the company's stock, valued at approximately $1,014,998.67. This represents a 2.53% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 73,077 shares of company stock valued at $1,139,601. 6.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC boosted its stake in Bandwidth by 53.9% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 21,876 shares of the company's stock worth $287,000 after purchasing an additional 7,661 shares during the period. CWM LLC boosted its stake in Bandwidth by 326.8% in the 1st quarter. CWM LLC now owns 7,460 shares of the company's stock worth $98,000 after purchasing an additional 5,712 shares during the period. Two Sigma Investments LP boosted its stake in Bandwidth by 8.9% in the 4th quarter. Two Sigma Investments LP now owns 108,338 shares of the company's stock worth $1,844,000 after purchasing an additional 8,813 shares during the period. Nuveen LLC bought a new position in Bandwidth in the 1st quarter worth about $7,916,000. Finally, AQR Capital Management LLC boosted its stake in Bandwidth by 303.1% in 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 during the period. Institutional investors own 68.53% of the company's stock.

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.