Insider Selling: Bandwidth (NASDAQ:BAND) COO Sells $239,311.35 in Stock

Key Points

• Bandwidth COO Devesh Agarwal sold 4,869 shares at an average price of $49.15, generating $239,311.35 and reducing his direct ownership by 5.8% to 79,138 shares.
• Bandwidth’s shares traded at $50.79, while its latest quarterly results topped expectations: adjusted earnings were $0.37 per share and revenue reached $219.9 million, up 22.2% year over year.
• Analysts maintain a “Moderate Buy” consensus with a $59.80 average price target, and institutional investors own 68.53% of the company despite some recent analyst downgrades.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) COO Devesh Agarwal sold 4,869 shares of Bandwidth stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $239,311.35. Following the sale, the chief operating officer directly owned 79,138 shares of the company's stock, valued at $3,889,632.70. This represents a 5.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Bandwidth Price Performance

NASDAQ:BAND traded up $2.36 during midday trading on Tuesday, hitting $50.79. The company had a trading volume of 900,407 shares, compared to its average volume of 873,670. The company has a market capitalization of $1.63 billion, a PE ratio of -175.14 and a beta of 2.96. 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 52-week low of $12.50 and a 52-week high of $79.08. The stock's fifty day moving average price is $56.46 and its 200-day moving average price is $41.13.

Bandwidth (NASDAQ:BAND - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share 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 business had revenue of $219.90 million for the quarter, compared to the consensus estimate of $217.62 million. The business'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, research analysts expect that Bandwidth Inc. will post 0.65 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Zacks Research cut shares of Bandwidth from a "strong-buy" rating to a "hold" rating in a report on Friday, July 3rd. Piper Sandler increased their price target on shares of Bandwidth from $38.00 to $52.00 and gave the company a "neutral" rating in a research report on Wednesday, August 19th. Needham & Company LLC reissued a "buy" rating on shares of Bandwidth in a report on Thursday, August 20th. Wall Street Zen cut shares of Bandwidth from a "strong-buy" rating to a "buy" rating in a research report on Sunday, June 28th. Finally, Weiss Ratings downgraded shares of Bandwidth from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $59.80.

Institutional Investors Weigh In On Bandwidth

A number of institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP grew its holdings in shares of Bandwidth by 138.9% during the second quarter. Wellington Management Group LLP now owns 911,893 shares of the company's stock valued at $57,723,000 after buying an additional 530,182 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Bandwidth by 299.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company's stock worth $12,268,000 after acquiring an additional 516,117 shares during the last quarter. Bastion Asset Management Inc. bought a new position in Bandwidth in the 1st quarter valued at approximately $6,592,000. CSM Advisors LLC bought a new position in Bandwidth in the 4th quarter valued at approximately $5,342,000. Finally, AQR Capital Management LLC boosted its stake in Bandwidth by 49.1% during the 2nd quarter. AQR Capital Management LLC now owns 587,305 shares of the company's stock valued at $9,338,000 after purchasing an additional 193,398 shares during the last quarter. 68.53% of the stock is owned by hedge funds and other institutional investors.

Bandwidth Company 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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