Bandwidth (NASDAQ:BAND) Stock Crosses Above Fifty Day Moving Average - Should You Sell?

Key Points

• Bandwidth shares crossed above their 50-day moving average, trading as high as $54.04 and last changing hands at $53.11, compared with a 50-day average of $51.56.
• The company delivered strong third-quarter results: record revenue of $234.0 million, adjusted EBITDA up 43% to $34.8 million, and adjusted EPS of $0.50, beating analysts’ $0.47 estimate.
• Despite the earnings beat and expected double-digit 2027 Cloud Communications growth, Bandwidth reaffirmed 2026 guidance rather than raising it. Analyst sentiment remains mixed, with a consensus “Hold” rating, a $59.29 price target, and recent insider selling adding caution.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $51.56 and traded as high as $54.04. Bandwidth shares last traded at $53.11, with a volume of 2,232,019 shares traded.

More Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Bandwidth reported record third-quarter revenue of $234.0 million, up 22% year over year, while adjusted EBITDA increased 43% to $34.8 million. GAAP net income improved to $5.2 million from a $1.2 million loss a year earlier, and free cash flow reached $33.0 million. Bandwidth Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Adjusted earnings of $0.50 per share exceeded the $0.47 analyst consensus, while revenue modestly surpassed the $233.15 million estimate. Results also improved from $0.36 per share in the year-ago quarter. Bandwidth Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management said 2027 Cloud Communications revenue should grow at a double-digit rate, supported by rising voice usage and increasing conversations between people and AI agents. Bandwidth Sinks on In-Line Guidance
• Neutral Sentiment: The company reaffirmed 2026 revenue guidance of $905 million to $910 million and adjusted EBITDA guidance of $124 million to $125 million. While this maintains expectations, investors had likely anticipated an upward revision following the quarterly beat. Bandwidth Amends Credit Agreement and Reports Results
• Neutral Sentiment: Bandwidth amended its credit agreement and appointed former Silver Lake executive Chip Schroeder to its expanded board, developments that may support financial flexibility and governance but were not immediate earnings catalysts. Bandwidth Appoints Chip Schroeder
• Negative Sentiment: Recent insider activity showed selling by company executives and directors, with no reported open-market purchases over the past six months. That pattern may weigh on sentiment, although it does not necessarily indicate deteriorating business fundamentals. Bandwidth Revenue Reaches Record Revenue

Analyst Ratings Changes

Several equities analysts have recently weighed in on BAND shares. Weiss Ratings cut Bandwidth from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, October 23rd. Morgan Stanley assumed coverage on Bandwidth in a report on Friday, October 16th. They set an "equal weight" rating and a $56.00 price objective on the stock. Bank of America started coverage on shares of Bandwidth in a research note on Wednesday, September 16th. They set a "neutral" rating and a $60.00 price objective for the company. Needham & Company LLC reaffirmed a "buy" rating on shares of Bandwidth in a report on Thursday, August 20th. Finally, Citizens Jmp upped their target price on shares of Bandwidth from $70.00 to $86.00 and gave the stock a "market outperform" rating in a report on Monday, July 20th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $59.29.

Bandwidth Price Performance

The firm has a market capitalization of $1.71 billion, a P/E ratio of -183.14, a PEG ratio of 4.32 and a beta of 3.01. The business's 50-day simple moving average is $51.56 and its 200 day simple moving average is $40.58. 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 (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.50 earnings per share for the quarter, topping analysts' consensus estimates of $0.47 by $0.03. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The firm had revenue of $234.02 million during the quarter, compared to analyst estimates of $233.15 million. The firm's revenue was up 21.9% on a year-over-year basis. Sell-side analysts forecast that Bandwidth Inc. will post 0.64 earnings per share for the current year.

Insiders Place Their Bets

In other Bandwidth news, COO Devesh Agarwal sold 4,869 shares of the company's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $239,311.35. Following the completion of the sale, the chief operating officer directly owned 79,138 shares in the company, valued at $3,889,632.70. This represents a 5.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Rebecca Bottorff sold 2,713 shares of the company's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $133,343.95. Following the sale, the insider owned 10,704 shares of the company's stock, valued at approximately $526,101.60. The trade was a 20.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 25,050 shares of company stock valued at $1,228,342 over the last three months. 5.26% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Bandwidth

Several institutional investors have recently bought and sold shares of BAND. State of Alaska Department of Revenue raised its holdings in Bandwidth by 43.1% during the 3rd quarter. State of Alaska Department of Revenue now owns 1,262 shares of the company's stock valued at $76,000 after buying an additional 380 shares during the last quarter. Sterling Capital Management LLC boosted its position in Bandwidth by 850.0% during the 3rd quarter. Sterling Capital Management LLC now owns 988 shares of the company's stock valued at $60,000 after buying an additional 884 shares during the period. TD Waterhouse Canada Inc. bought a new stake in Bandwidth in the 2nd quarter worth $70,000. Integrated Wealth Concepts LLC bought a new stake in Bandwidth in the 2nd quarter worth $94,000. Finally, Simplicity Wealth LLC purchased a new position in shares of Bandwidth in the third quarter valued at about $202,000. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

About Bandwidth

Bandwidth Inc NASDAQ: BAND is a cloud communications company that provides application programming interfaces (APIs) and related network services for integrating voice, messaging and emergency communications into software applications. Its platform is designed for businesses, communications providers and technology companies that need to build communications capabilities into customer-facing products and internal workflows.

The company's offerings include programmable voice, text messaging and toll-free messaging services, as well as emergency calling capabilities through its E911 solution.

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