Bandwidth (NASDAQ:BAND) Shares Up 6.2% - Still a Buy?

Key Points

• Bandwidth shares rose 6.2% to about $46.34, although trading volume was 86% below the average session volume.
• Analysts maintain a generally positive outlook, with five Buy ratings and three Holds producing a consensus “Moderate Buy” rating and a $59.80 price target.
• The company exceeded quarterly expectations, reporting $0.37 in adjusted earnings per share and $219.9 million in revenue, up 22.2% year over year; however, insiders have sold 23,550 shares worth roughly $1.15 million over the past three months.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report)'s share price was up 6.2% during mid-day trading on Wednesday . The stock traded as high as $46.45 and last traded at $46.3350. 122,677 shares were traded during trading, a decline of 86% from the average session volume of 862,263 shares. The stock had previously closed at $43.62.

Wall Street Analysts Forecast Growth

BAND has been the subject of a number of research analyst reports. Zacks Research downgraded shares of Bandwidth from a "strong-buy" rating to a "hold" rating in a report on Friday, July 3rd. Needham & Company LLC reissued a "buy" rating on shares of Bandwidth in a research note on Thursday, August 20th. Citigroup restated a "market outperform" rating on shares of Bandwidth in a research report on Monday, July 20th. Wall Street Zen lowered Bandwidth from a "strong-buy" rating to a "buy" rating in a research note on Sunday, June 28th. Finally, Piper Sandler upped their price objective on Bandwidth from $38.00 to $52.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Bandwidth currently has a consensus rating of "Moderate Buy" and a consensus target price of $59.80.

Bandwidth Price Performance

The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.04 and a current ratio of 2.04. The firm has a market cap of $1.53 billion, a P/E ratio of -164.30 and a beta of 3.03. The business has a 50-day simple moving average of $55.22 and a 200 day simple moving average of $42.53.

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 the consensus estimate of $0.36 by $0.01. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The business had revenue of $219.90 million for the quarter, compared to analysts' expectations of $217.62 million. The company's revenue for the quarter 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. On average, analysts anticipate that Bandwidth Inc. will post 0.65 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO David Morken sold 5,128 shares of the firm'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 value of $252,041.20. Following the completion of the transaction, the chief executive officer owned 6,702 shares in the company, valued at $329,403.30. This trade represents a 43.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Daryl Raiford sold 4,673 shares of Bandwidth stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $49.15, for a total value of $229,677.95. Following the sale, the chief financial officer owned 35,832 shares in the company, valued at $1,761,142.80. This represents a 11.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 23,550 shares of company stock worth $1,154,782. Company insiders own 5.26% of the company's stock.

Institutional Investors Weigh In On Bandwidth

A number of hedge funds and other institutional investors have recently bought and sold shares of BAND. Tower Research Capital LLC TRC boosted its position in shares of Bandwidth by 183.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company's stock worth $60,000 after purchasing an additional 2,445 shares in the last quarter. TD Waterhouse Canada Inc. bought a new position in shares of Bandwidth during the second quarter valued at $70,000. Raymond James Financial Inc. bought a new position in shares of Bandwidth during the second quarter valued at $85,000. Integrated Wealth Concepts LLC purchased a new position in shares of Bandwidth in the 2nd quarter worth about $94,000. Finally, Quantbot Technologies LP purchased a new position in shares of Bandwidth in the 2nd quarter worth about $128,000. Hedge funds and other 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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