Bandwidth Inc. (NASDAQ:BAND) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately bullish: Five of eight analysts rate Bandwidth a “buy” and three recommend holding, with an average 12-month price target of $59.80.
• Bandwidth beat quarterly expectations, reporting $0.37 EPS versus $0.36 expected and $219.9 million in revenue, up 22.2% year over year. Management guided to $0.45–$0.49 EPS for the next quarter and $1.71–$1.79 for fiscal 2026.
• Insiders sold 52,844 shares worth approximately $3.5 million over the past 90 days, while institutional investors own 68.53% of the company’s stock.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the eight research firms that are covering the company, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $59.80.

Several equities analysts have recently weighed in on BAND shares. Citizens Jmp increased their price objective on shares of Bandwidth from $70.00 to $86.00 and gave the stock a "market outperform" rating in a research note on Monday, July 20th. B. Riley Financial upped their target price on shares of Bandwidth from $55.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Citigroup reiterated a "market outperform" rating on shares of Bandwidth in a research report on Monday, July 20th. Zacks Research cut shares of Bandwidth from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 3rd. Finally, Weiss Ratings raised shares of Bandwidth from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, August 13th.

Bandwidth Stock Up 0.5%

Shares of Bandwidth stock opened at $46.89 on Thursday. The company has a 50-day moving average of $56.55 and a 200 day moving average of $40.36. Bandwidth has a 1 year low of $12.50 and a 1 year high of $79.08. The firm has a market cap of $1.51 billion, a price-to-earnings ratio of -161.69 and a beta of 2.96. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04.

Bandwidth (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. The company had revenue of $219.90 million for the quarter, compared to analysts' expectations of $217.62 million. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The company's revenue was up 22.2% on a year-over-year basis. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. As a group, sell-side analysts anticipate that Bandwidth will post 0.65 earnings per share for the current fiscal year.

Insider Activity at Bandwidth

In other Bandwidth news, CEO David A. Morken sold 4,632 shares of the business's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $58.85, for a total transaction of $272,593.20. Following the completion of the sale, the chief executive officer owned 7,198 shares of the company's stock, valued at approximately $423,602.30. The trade was a 39.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Rebecca Bottorff sold 2,176 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $58.85, for a total value of $128,057.60. Following the completion of the transaction, the insider directly owned 5,620 shares in the company, valued at $330,737. This trade represents a 27.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 52,844 shares of company stock valued at $3,517,318 in the last ninety days. Corporate insiders own 5.26% of the company's stock.

Hedge Funds Weigh In On Bandwidth

Hedge funds and other institutional investors have recently modified their holdings of the stock. Deutsche Bank AG lifted its stake in shares of Bandwidth by 6.0% in the 4th quarter. Deutsche Bank AG now owns 18,343 shares of the company's stock valued at $283,000 after purchasing an additional 1,043 shares during the last quarter. TD Waterhouse Canada Inc. bought a new position in shares of Bandwidth during the 2nd quarter valued at approximately $70,000. Mercer Global Advisors Inc. ADV raised its holdings in Bandwidth by 2.1% during the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 53,681 shares of the company's stock valued at $895,000 after buying an additional 1,129 shares during the period. Franklin Resources Inc. raised its holdings in Bandwidth by 3.6% during the 4th quarter. Franklin Resources Inc. now owns 58,141 shares of the company's stock valued at $898,000 after buying an additional 2,043 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its position in Bandwidth by 8.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,896 shares of the company's stock worth $462,000 after buying an additional 2,250 shares during the last quarter. 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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