Equities Analysts Set Expectations for Bandwidth Q3 Earnings

Key Points

• William Blair has reduced its Q3 2025 earnings forecast for Bandwidth Inc., now estimating earnings of $0.08 per share, down from $0.11.
• Analysts have mixed views on Bandwidth, with ratings ranging from "sell" to "buy," resulting in an average target price of $20.80 per share.
• Insider transactions indicate significant selling activity, including CEO David A. Morken reducing his ownership by 41.79% after selling nearly 5,000 shares.

Bandwidth Inc. (NASDAQ:BAND - Free Report) - Stock analysts at William Blair lowered their Q3 2025 earnings per share (EPS) estimates for Bandwidth in a research note issued to investors on Tuesday, July 29th. William Blair analyst A. Bhatia now anticipates that the company will post earnings per share of $0.08 for the quarter, down from their prior estimate of $0.11. The consensus estimate for Bandwidth's current full-year earnings is $0.22 per share. William Blair also issued estimates for Bandwidth's Q4 2025 earnings at $0.16 EPS and Q3 2026 earnings at $0.23 EPS.

Several other brokerages have also issued reports on BAND. JMP Securities restated a "market outperform" rating and issued a $36.00 target price on shares of Bandwidth in a research note on Thursday, May 15th. Robert W. Baird reduced their price target on Bandwidth from $20.00 to $15.00 and set a "neutral" rating for the company in a research report on Thursday, May 8th. Needham & Company LLC reiterated a "buy" rating and issued a $20.00 price target on shares of Bandwidth in a research report on Friday, June 13th. Finally, Morgan Stanley reduced their price target on Bandwidth from $18.00 to $11.00 and set an "underweight" rating for the company in a research report on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, Bandwidth presently has a consensus rating of "Moderate Buy" and an average price target of $20.80.

Bandwidth Stock Performance

Shares of BAND traded down $0.25 during mid-day trading on Friday, hitting $13.39. The stock had a trading volume of 100,030 shares, compared to its average volume of 296,447. The firm has a market cap of $398.34 million, a P/E ratio of -39.38 and a beta of 1.80. The business has a fifty day moving average price of $14.93 and a 200-day moving average price of $14.88. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.31 and a quick ratio of 1.31. Bandwidth has a 52 week low of $11.33 and a 52 week high of $23.00.

Bandwidth (NASDAQ:BAND - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $0.38 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.06. The business had revenue of $180.01 million for the quarter, compared to analyst estimates of $178.87 million. Bandwidth had a positive return on equity of 1.43% and a negative net margin of 1.32%. Bandwidth's quarterly revenue was up 3.4% compared to the same quarter last year. During the same period last year, the company posted $0.29 earnings per share.

Insider Buying and Selling at Bandwidth

In other news, CFO Daryl Raiford sold 3,188 shares of the company's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $14.47, for a total value of $46,130.36. Following the completion of the transaction, the chief financial officer directly owned 119,707 shares in the company, valued at approximately $1,732,160.29. This represents a 2.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Rebecca Bottorff sold 16,935 shares of the company's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $15.14, for a total value of $256,395.90. Following the completion of the transaction, the insider owned 43,285 shares of the company's stock, valued at $655,334.90. The trade was a 28.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 44,596 shares of company stock valued at $658,682 over the last 90 days. Insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Bandwidth

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Bank of Montreal Can boosted its holdings in shares of Bandwidth by 1.7% in the 2nd quarter. Bank of Montreal Can now owns 156,087 shares of the company's stock worth $2,482,000 after purchasing an additional 2,554 shares in the last quarter. Parcion Private Wealth LLC lifted its stake in shares of Bandwidth by 1.1% in the 2nd quarter. Parcion Private Wealth LLC now owns 236,956 shares of the company's stock valued at $3,768,000 after acquiring an additional 2,566 shares during the last quarter. CWM LLC lifted its stake in shares of Bandwidth by 176.2% in the 2nd quarter. CWM LLC now owns 20,608 shares of the company's stock valued at $328,000 after acquiring an additional 13,148 shares during the last quarter. CX Institutional bought a new stake in shares of Bandwidth in the 2nd quarter valued at about $241,000. Finally, Assenagon Asset Management S.A. lifted its stake in shares of Bandwidth by 6.1% in the 2nd quarter. Assenagon Asset Management S.A. now owns 191,318 shares of the company's stock valued at $3,042,000 after acquiring an additional 11,074 shares during the last quarter. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

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.