Equities Analysts Issue Forecasts for Bandwidth Q2 Earnings

Key Points

• Zacks Research has lowered its Q2 2026 earnings per share (EPS) estimate for Bandwidth from $0.06 to $0.01, affecting the overall outlook for the company.
• Bandwidth's stock is currently rated as a "Hold"** by analysts, with five analysts giving it a Buy rating and a target price averaging around $20.80.
• Institutional ownership of Bandwidth has increased significantly, with over 68.53% of the stock owned by institutional investors and hedge funds.

Bandwidth Inc. (NASDAQ:BAND - Free Report) - Zacks Research lowered their Q2 2026 EPS estimates for Bandwidth in a report issued on Tuesday, October 21st. Zacks Research analyst Team now expects that the company will post earnings per share of $0.01 for the quarter, down from their prior estimate of $0.06. The consensus estimate for Bandwidth's current full-year earnings is $0.22 per share. Zacks Research also issued estimates for Bandwidth's Q2 2027 earnings at $0.12 EPS.

Bandwidth (NASDAQ:BAND - Get Free Report) last released its quarterly 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 negative net margin of 1.32% and a positive return on equity of 1.43%. The business had revenue of $180.01 million for the quarter, compared to analyst estimates of $178.87 million. During the same period last year, the firm earned $0.29 earnings per share. Bandwidth's revenue for the quarter 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.

Several other equities analysts have also commented on BAND. Wall Street Zen lowered shares of Bandwidth from a "strong-buy" rating to a "buy" rating in a report on Sunday, September 28th. Wedbush reissued an "outperform" rating on shares of Bandwidth in a report on Wednesday, September 17th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Bandwidth in a report on Wednesday, October 8th. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $20.80.

Bandwidth Price Performance

NASDAQ:BAND opened at $16.13 on Wednesday. Bandwidth has a 52 week low of $11.33 and a 52 week high of $23.00. The firm has a market cap of $486.17 million, a price-to-earnings ratio of -47.44 and a beta of 1.92. The firm's 50-day simple moving average is $15.80 and its 200 day simple moving average is $14.65. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current ratio of 1.31.

Institutional Investors Weigh In On Bandwidth

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of Bandwidth by 0.9% in the 1st quarter. Vanguard Group Inc. now owns 1,785,698 shares of the company's stock valued at $23,393,000 after purchasing an additional 16,671 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its stake in shares of Bandwidth by 11.3% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 680,945 shares of the company's stock valued at $10,827,000 after purchasing an additional 69,065 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Bandwidth by 8.9% in the 2nd quarter. Geode Capital Management LLC now owns 648,763 shares of the company's stock valued at $10,318,000 after purchasing an additional 52,762 shares in the last quarter. Nuveen LLC acquired a new stake in Bandwidth during the 1st quarter worth approximately $7,916,000. Finally, AQR Capital Management LLC boosted its position in Bandwidth by 49.1% during the 2nd quarter. AQR Capital Management LLC now owns 587,305 shares of the company's stock worth $9,338,000 after buying an additional 193,398 shares during the period. 68.53% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Devin M. Krupka sold 7,166 shares of the firm's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $18.00, for a total value of $128,988.00. Following the sale, the insider directly owned 19,192 shares in the company, valued at approximately $345,456. This trade represents a 27.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Devesh Agarwal sold 1,745 shares of the firm's stock in a transaction that occurred 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 owned 67,263 shares in the company, valued at approximately $1,014,998.67. The trade was a 2.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 70,092 shares of company stock worth $1,093,237. Corporate insiders own 6.20% of the company's stock.

About Bandwidth

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.