Arrowstreet Capital Limited Partnership Raises Stock Position in Bandwidth Inc. $BAND

Key Points

• Arrowstreet Capital increased its Bandwidth stake by 299.5% in the first quarter, purchasing 516,117 additional shares to own 688,430 shares, or about 2.15% of the company. Institutional investors collectively hold 68.53% of Bandwidth.
• Bandwidth insiders sold 117,269 shares worth approximately $6.88 million over the past 90 days, while insiders currently own 5.26% of the stock.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $61.75. Bandwidth also exceeded quarterly expectations, reporting $0.37 in EPS and $219.9 million in revenue, up 22.2% year over year.

Arrowstreet Capital Limited Partnership boosted its stake in Bandwidth Inc. (NASDAQ:BAND - Free Report) by 299.5% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 688,430 shares of the company's stock after purchasing an additional 516,117 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 2.15% of Bandwidth worth $12,268,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently modified their holdings of the stock. UBS Group AG grew its holdings in shares of Bandwidth by 189.2% during the fourth quarter. UBS Group AG now owns 205,300 shares of the company's stock worth $3,172,000 after buying an additional 134,309 shares in the last quarter. Bastion Asset Management Inc. bought a new stake in Bandwidth in the 1st quarter valued at approximately $6,592,000. Nano Cap New Millennium Growth Fund L P acquired a new position in Bandwidth during the 4th quarter worth approximately $1,622,000. Walleye Capital LLC acquired a new position in Bandwidth during the 1st quarter worth approximately $1,069,000. Finally, Assenagon Asset Management S.A. grew its stake in shares of Bandwidth by 51.1% during the 1st quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company's stock worth $8,765,000 after acquiring an additional 166,423 shares in the last quarter. Hedge funds and other institutional investors own 68.53% of the company's stock.

Insiders Place Their Bets

In other Bandwidth news, General Counsel Richard Brandon Asbill sold 29,214 shares of the firm's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $72.03, for a total transaction of $2,104,284.42. Following the transaction, the general counsel owned 3,000 shares in the company, valued at $216,090. This trade represents a 90.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Kade Ross sold 1,588 shares of Bandwidth stock in a transaction on Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $93,453.80. Following the completion of the transaction, the insider directly owned 47,996 shares of the company's stock, valued at $2,824,564.60. This represents a 3.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 117,269 shares of company stock worth $6,876,623. 5.26% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of analysts have recently issued reports on BAND shares. Zacks Research downgraded shares of Bandwidth from a "strong-buy" rating to a "hold" rating in a report on Friday, July 3rd. Citizens Jmp raised their target price on shares of Bandwidth from $70.00 to $86.00 and gave the company a "market outperform" rating in a research report on Monday, July 20th. Wall Street Zen lowered shares of Bandwidth from a "strong-buy" rating to a "buy" rating in a research note on Sunday, June 28th. B. Riley Financial boosted their price target on shares of Bandwidth from $55.00 to $85.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Finally, Needham & Company LLC increased their price objective on shares of Bandwidth from $45.00 to $60.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $61.75.

Bandwidth Stock Performance

Shares of BAND opened at $39.14 on Friday. The firm has a 50-day moving average of $61.34 and a 200-day moving average of $35.70. Bandwidth Inc. has a one year low of $12.50 and a one year high of $79.08. The company has a market cap of $1.25 billion, a PE ratio of -134.97 and a beta of 2.92. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 0.94.

Bandwidth (NASDAQ:BAND - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.36 by $0.01. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.The company had revenue of $219.90 million during the quarter, compared to analysts' expectations of $217.62 million. Bandwidth'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, equities analysts forecast that Bandwidth Inc. will post 0.53 earnings per share for the current year.

Bandwidth 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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