Bandwidth (NASDAQ:BAND) Stock Price Down 8.8% - Time to Sell?

Key Points

• Bandwidth shares fell 8.8% to about $51.84, on trading volume below the stock’s average.
• Analyst sentiment remains positive but cautious: five analysts rate the stock Buy and three Hold, resulting in a “Moderate Buy” consensus and an average price target of $59.80.
• The company recently exceeded quarterly earnings and revenue estimates, with revenue rising 22.2% year over year, but insiders sold 23,550 shares worth approximately $1.15 million over the past 90 days.

Bandwidth Inc. (NASDAQ:BAND - Get Free Report) dropped 8.8% on Monday . The stock traded as low as $51.56 and last traded at $51.8410. Approximately 471,737 shares changed hands during trading, a decline of 46% from the average session volume of 871,348 shares. The stock had previously closed at $56.87.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Weiss Ratings lowered Bandwidth from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, August 27th. Wall Street Zen downgraded Bandwidth from a "strong-buy" rating to a "buy" rating in a report on Sunday, June 28th. Piper Sandler upped their price target on Bandwidth from $38.00 to $52.00 and gave the company a "neutral" rating in a research report on Wednesday, August 19th. Zacks Research downgraded Bandwidth from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 3rd. Finally, Needham & Company LLC restated a "buy" rating on shares of Bandwidth in a research report on Thursday, August 20th. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $59.80.

Bandwidth Stock Performance

The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 0.87. The firm has a market capitalization of $1.68 billion, a PE ratio of -179.29 and a beta of 3.03. The firm's fifty day moving average price is $54.63 and its 200 day moving average price is $43.33.

Bandwidth (NASDAQ:BAND - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $219.90 million for the quarter, compared to analyst estimates of $217.62 million. The company'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. On average, research analysts anticipate that Bandwidth Inc. will post 0.65 earnings per share for the current year.

Insider Activity

In related 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 value of $239,311.35. Following the sale, the chief operating officer owned 79,138 shares of the company's stock, valued at $3,889,632.70. The trade was a 5.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO David A. Morken sold 5,128 shares of the 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 directly owned 6,702 shares of the company's stock, valued at approximately $329,403.30. The trade was a 43.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 23,550 shares of company stock valued at $1,154,782. Corporate insiders own 5.26% of the company's stock.

Institutional Investors Weigh In On Bandwidth

A number of large investors have recently bought and sold shares of the business. Deutsche Bank AG lifted its holdings in Bandwidth by 6.0% in the fourth quarter. Deutsche Bank AG now owns 18,343 shares of the company's stock valued at $283,000 after buying an additional 1,043 shares during the period. TD Waterhouse Canada Inc. acquired a new position in shares of Bandwidth in the 2nd quarter valued at approximately $70,000. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Bandwidth by 2.1% in the third quarter. Mercer Global Advisors Inc. ADV now owns 53,681 shares of the company's stock valued at $895,000 after buying an additional 1,129 shares during the period. Integrated Wealth Concepts LLC bought a new position in Bandwidth during the 2nd quarter worth about $94,000. Finally, Franklin Resources Inc. grew its holdings in shares of Bandwidth by 3.6% during the fourth quarter. Franklin Resources Inc. now owns 58,141 shares of the company's stock worth $898,000 after buying an additional 2,043 shares in the last quarter. 68.53% of the stock is currently owned by institutional investors.

About Bandwidth

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and communications services for businesses, software developers and service providers. Its platform enables organizations to integrate voice calling, text messaging and other communications capabilities into applications, websites and business workflows.

The company's offerings include voice and messaging APIs, toll-free and local telephone numbers, emergency communications and 911 access, authentication and related communications tools.

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