Zacks Research Has Bearish Outlook for Bandwidth Q2 Earnings

Bandwidth Inc. (NASDAQ:BAND - Free Report) - Zacks Research reduced their Q2 2025 earnings per share estimates for shares of Bandwidth in a report released on Wednesday, May 28th. Zacks Research analyst R. Department now anticipates that the company will earn $0.03 per share for the quarter, down from their previous estimate of $0.04. The consensus estimate for Bandwidth's current full-year earnings is $0.22 per share. Zacks Research also issued estimates for Bandwidth's Q3 2026 earnings at $0.00 EPS.

Bandwidth (NASDAQ:BAND - Get Free Report) last released its earnings results on Wednesday, May 7th. The company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.29 by $0.07. The company had revenue of $174.24 million during the quarter, compared to analysts' expectations of $168.96 million. Bandwidth had a positive return on equity of 0.53% and a negative net margin of 0.87%. The business's revenue was up 1.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.27 EPS.

Other equities research analysts have also issued reports about the company. William Blair reissued an "outperform" rating on shares of Bandwidth in a research report on Friday, February 21st. Needham & Company LLC assumed coverage on Bandwidth in a research report on Wednesday, May 7th. They set a "buy" rating and a $20.00 price target on the stock. JMP Securities restated a "market outperform" rating and set a $36.00 price objective on shares of Bandwidth in a research report on Thursday, May 15th. Robert W. Baird dropped their target price on Bandwidth from $20.00 to $15.00 and set a "neutral" rating on the stock in a research report on Thursday, May 8th. Finally, Morgan Stanley dropped their target price on Bandwidth from $18.00 to $11.00 and set an "underweight" rating on the stock in a research report on Wednesday, April 16th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $20.80.

Bandwidth Stock Performance

Shares of BAND stock traded up $0.24 on Thursday, hitting $14.26. 83,098 shares of the stock traded hands, compared to its average volume of 287,365. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.34 and a quick ratio of 1.34. The company has a market capitalization of $424.36 million, a PE ratio of -25.01 and a beta of 1.88. Bandwidth has a 1-year low of $11.33 and a 1-year high of $23.90. The company's fifty day moving average is $13.14 and its 200 day moving average is $15.99.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in Bandwidth by 0.9% during the first quarter. Vanguard Group Inc. now owns 1,785,698 shares of the company's stock worth $23,393,000 after acquiring an additional 16,671 shares during the period. Dimensional Fund Advisors LP grew its holdings in Bandwidth by 9.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,249,120 shares of the company's stock worth $21,260,000 after acquiring an additional 112,269 shares during the period. Renaissance Technologies LLC grew its holdings in Bandwidth by 15.3% during the fourth quarter. Renaissance Technologies LLC now owns 651,300 shares of the company's stock worth $11,085,000 after acquiring an additional 86,200 shares during the period. Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of Bandwidth by 16.6% in the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 611,880 shares of the company's stock valued at $8,016,000 after purchasing an additional 87,294 shares during the period. Finally, Nuveen LLC acquired a new position in shares of Bandwidth in the 1st quarter valued at $7,916,000. 68.53% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, General Counsel Richard Brandon Asbill sold 9,878 shares of the firm's stock in a transaction on Wednesday, March 5th. The stock was sold at an average price of $15.24, for a total transaction of $150,540.72. Following the transaction, the general counsel now directly owns 42,475 shares of the company's stock, valued at approximately $647,319. This trade represents a 18.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David A. Morken sold 4,999 shares of the firm's stock in a transaction on Thursday, May 29th. The shares were sold at an average price of $14.47, for a total value of $72,335.53. Following the transaction, the chief executive officer now directly owns 6,964 shares in the company, valued at $100,769.08. This trade represents a 41.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 26,081 shares of company stock valued at $384,998 over the last three months. Company insiders own 6.50% of the company's stock.

Bandwidth Company Profile

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth's APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.