Bandwidth Target of Unusually High Options Trading (NASDAQ:BAND)

Key Points

• Bandwidth saw unusual options activity on Monday, with traders buying 7,588 call options — about 1,707% above the average daily volume.
• The stock rose 4.3% to $52.03, near its 52-week high of $53.21, after a strong run that has pushed it far above its 50-day and 200-day moving averages.
• Recent fundamentals and analyst sentiment improved: Bandwidth beat quarterly EPS and revenue estimates, and several analysts raised ratings or price targets, with a consensus target price of $31.00.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) was the recipient of some unusual options trading on Monday. Traders purchased 7,588 call options on the company. This is an increase of approximately 1,707% compared to the average daily volume of 420 call options.

Bandwidth Stock Up 4.3%

BAND traded up $2.14 on Monday, reaching $52.03. The company's stock had a trading volume of 404,917 shares, compared to its average volume of 551,458. The stock has a market cap of $1.63 billion, a price-to-earnings ratio of -137.02 and a beta of 2.72. Bandwidth has a 1 year low of $12.50 and a 1 year high of $53.21. 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 business's 50 day moving average is $20.13 and its 200 day moving average is $16.49.

Bandwidth (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings data 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 positive return on equity of 1.47% and a negative net margin of 0.64%.The firm had revenue of $208.78 million for the quarter, compared to analysts' expectations 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. As a group, research analysts forecast that Bandwidth will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling at Bandwidth

In other Bandwidth news, CFO Daryl E. Raiford sold 16,100 shares of the business's stock in a transaction dated Friday, March 13th. The stock was 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 approximately $556,637.55. The trade was a 30.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Rebecca Bottorff sold 9,425 shares of the business's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $45.30, for a total value of $426,952.50. Following the sale, the insider directly owned 50,535 shares of the company's stock, valued at approximately $2,289,235.50. This trade represents a 15.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 52,551 shares of company stock valued at $1,250,804. Company insiders own 5.26% of the company's stock.

Institutional Trading of Bandwidth

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP raised its position in shares of Bandwidth by 6.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company's stock worth $27,647,000 after purchasing an additional 91,812 shares during the period. Bastion Asset Management Inc. acquired a new stake in shares of Bandwidth during the 1st quarter worth approximately $6,592,000. IMC Chicago LLC acquired a new stake in shares of Bandwidth during the 1st quarter worth approximately $218,000. Principal Financial Group Inc. raised its position in shares of Bandwidth by 50.5% during the 1st quarter. Principal Financial Group Inc. now owns 41,626 shares of the company's stock worth $742,000 after purchasing an additional 13,959 shares during the period. Finally, Hsbc Holdings PLC raised its position in shares of Bandwidth by 51.5% during the 1st quarter. Hsbc Holdings PLC now owns 92,804 shares of the company's stock worth $1,707,000 after purchasing an additional 31,565 shares during the period. 68.53% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have issued reports on BAND shares. Wall Street Zen raised Bandwidth from a "hold" rating to a "strong-buy" rating in a research report on Saturday, May 2nd. Needham & Company LLC upped their target price on Bandwidth from $20.00 to $45.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Citigroup reaffirmed an "outperform" rating on shares of Bandwidth in a research report on Thursday, April 30th. Zacks Research raised Bandwidth from a "hold" rating to a "strong-buy" rating in a research report on Thursday. Finally, B. Riley Financial upped their target price on Bandwidth from $20.00 to $27.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $31.00.

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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