Wedbush Reaffirms Outperform Rating for Bandwidth (NASDAQ:BAND)

Key Points

• Wedbush has reaffirmed an "outperform" rating for Bandwidth (NASDAQ:BAND), while Needham & Company issued a "buy" rating with a target price of $20.00.
• Bandwidth's recent quarterly earnings outperformed expectations, reporting $0.38 earnings per share and $180.01 million in revenue, reflecting a 3.4% year-over-year increase.
• Insider trading activity includes CFO Daryl Raiford selling 19,000 shares, which represents a 14.78% decrease in his ownership of Bandwidth stock.

Bandwidth (NASDAQ:BAND - Get Free Report)'s stock had its "outperform" rating reaffirmed by equities research analysts at Wedbush in a research report issued to clients and investors on Wednesday,RTT News reports.

Separately, Needham & Company LLC reissued a "buy" rating and issued a $20.00 price target on shares of Bandwidth in a report on Friday, June 13th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Bandwidth presently has an average rating of "Moderate Buy" and an average target price of $20.80.

Bandwidth Stock Performance

Shares of NASDAQ BAND traded down $0.54 during mid-day trading on Wednesday, hitting $17.54. The stock had a trading volume of 329,808 shares, compared to its average volume of 278,198. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current ratio of 1.31. The company has a 50 day moving average of $15.04 and a two-hundred day moving average of $14.36. Bandwidth has a twelve month low of $11.33 and a twelve month high of $23.00. The firm has a market cap of $528.66 million, a PE ratio of -51.59 and a beta of 1.81.

Bandwidth (NASDAQ:BAND - Get Free Report) last released its earnings results on Tuesday, July 29th. The company reported $0.38 EPS 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 firm had revenue of $180.01 million during the quarter, compared to the consensus estimate of $178.87 million. During the same quarter in the previous year, the company posted $0.29 earnings per share. The company's revenue was up 3.4% compared to the same quarter last year. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts predict that Bandwidth will post 0.22 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Devin M. Krupka sold 7,166 shares of the stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $18.00, for a total transaction of $128,988.00. Following the completion of the transaction, the insider directly owned 19,192 shares in the company, valued at approximately $345,456. This represents a 27.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Daryl Raiford sold 19,000 shares of the stock in a transaction on Friday, September 5th. The stock was sold at an average price of $15.50, for a total value of $294,500.00. Following the transaction, the chief financial officer owned 109,538 shares of the company's stock, valued at approximately $1,697,839. This represents a 14.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 73,077 shares of company stock valued at $1,139,601. 6.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Bandwidth

Several hedge funds have recently bought and sold shares of the company. Tower Research Capital LLC TRC raised its position in Bandwidth by 183.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company's stock valued at $60,000 after purchasing an additional 2,445 shares in the last quarter. Harbor Capital Advisors Inc. acquired a new stake in shares of Bandwidth during the 1st quarter worth about $72,000. US Bancorp DE raised its position in shares of Bandwidth by 11,281.3% during the 1st quarter. US Bancorp DE now owns 5,463 shares of the company's stock worth $72,000 after acquiring an additional 5,415 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Bandwidth during the 2nd quarter worth about $85,000. Finally, GAMMA Investing LLC raised its position in shares of Bandwidth by 16,036.6% during the 1st quarter. GAMMA Investing LLC now owns 6,616 shares of the company's stock worth $87,000 after acquiring an additional 6,575 shares in the last quarter. Institutional investors and hedge funds 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.