Bank of New York Mellon Corp Makes New Investment in Bandwidth Inc. $BAND

Key Points

• Bank of New York Mellon purchased 106,024 Bandwidth shares worth approximately $6.7 million, while institutional investors and hedge funds collectively own 68.53% of the company.
• Bandwidth exceeded quarterly expectations, reporting $0.37 in EPS versus $0.36 expected and $219.9 million in revenue, up 22.2% year over year. The company issued 2026 earnings guidance of $1.71–$1.79 per share.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $59.80, although insiders sold 23,550 shares worth roughly $1.15 million over the past three months.

Bank of New York Mellon Corp bought a new position in Bandwidth Inc. (NASDAQ:BAND - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor bought 106,024 shares of the company's stock, valued at approximately $6,711,000. Bank of New York Mellon Corp owned approximately 0.33% of Bandwidth as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Tower Research Capital LLC TRC increased its stake in shares of Bandwidth by 183.7% in the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company's stock valued at $60,000 after buying an additional 2,445 shares during the period. Raymond James Financial Inc. bought a new stake in Bandwidth during the 2nd quarter worth approximately $85,000. Quantbot Technologies LP acquired a new position in Bandwidth in the 2nd quarter valued at approximately $128,000. State of Wyoming raised its stake in shares of Bandwidth by 104.6% during the fourth quarter. State of Wyoming now owns 8,756 shares of the company's stock valued at $135,000 after acquiring an additional 4,476 shares during the last quarter. Finally, Diversified Trust Co bought a new position in Bandwidth during the 1st quarter worth $184,000. 68.53% of the stock is owned by institutional investors and hedge funds.

Bandwidth Stock Performance

NASDAQ:BAND opened at $47.09 on Friday. The company has a fifty day moving average of $56.22 and a 200-day moving average of $41.88. The firm has a market capitalization of $1.52 billion, a P/E ratio of -162.38 and a beta of 3.03. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 0.87. Bandwidth Inc. has a twelve month low of $12.50 and a twelve month high of $79.08.

Bandwidth (NASDAQ:BAND - Get Free Report) last released its earnings results 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 net margin of 0.27% and a return on equity of 1.85%. The company had revenue of $219.90 million for the quarter, compared to the consensus estimate of $217.62 million. The company's revenue was up 22.2% compared to the same quarter last year. 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 Inc. will post 0.65 EPS for the current year.

Insiders Place Their Bets

In other news, insider Rebecca Bottorff sold 2,713 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $133,343.95. Following the transaction, the insider directly owned 10,704 shares of the company's stock, valued at $526,101.60. This represents a 20.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO David A. Morken sold 5,128 shares of the company's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $252,041.20. Following the transaction, the chief executive officer owned 6,702 shares in the company, valued at approximately $329,403.30. The trade was a 43.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 23,550 shares of company stock worth $1,154,782 over the last three months. Insiders own 5.26% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on BAND. Citigroup reissued a "market outperform" rating on shares of Bandwidth in a research note on Monday, July 20th. Citizens Jmp upped their price objective on shares of Bandwidth from $70.00 to $86.00 and gave the company a "market outperform" rating in a research note on Monday, July 20th. B. Riley Financial increased their price objective 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. Piper Sandler boosted their target price on shares of Bandwidth from $38.00 to $52.00 and gave the company a "neutral" rating in a report on Wednesday, August 19th. Finally, Weiss Ratings downgraded Bandwidth from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, August 27th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $59.80.

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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