William Blair Has Negative Outlook 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 reduced their Q3 2025 earnings estimates for Bandwidth in a research note issued to investors on Tuesday, July 29th. William Blair analyst A. Bhatia now expects that the company will earn $0.08 per share 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.

BAND has been the topic of a number of other reports. Morgan Stanley lowered their target price on shares of Bandwidth from $18.00 to $11.00 and set an "underweight" rating on the stock in a research note on Wednesday, April 16th. Robert W. Baird lowered their target price on shares of Bandwidth from $20.00 to $15.00 and set a "neutral" rating on the stock in a research note on Thursday, May 8th. Needham & Company LLC reaffirmed a "buy" rating and issued a $20.00 target price on shares of Bandwidth in a research note on Friday, June 13th. Finally, JMP Securities reissued a "market outperform" rating and set a $36.00 price target on shares of Bandwidth in a research note on Thursday, May 15th. One analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $20.80.

Bandwidth Price Performance

BAND traded up $0.18 on Friday, reaching $13.63. The company had a trading volume of 266,074 shares, compared to its average volume of 297,827. The business has a 50 day simple moving average of $14.93 and a 200 day simple moving average of $14.89. The company has a market cap of $405.67 million, a price-to-earnings ratio of -40.09 and a beta of 1.80. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current 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 announced its earnings results on Tuesday, July 29th. The company reported $0.38 earnings per share for the quarter, beating analysts' consensus estimates of $0.32 by $0.06. The business had revenue of $180.01 million for the quarter, compared to the consensus estimate of $178.87 million. Bandwidth had a negative net margin of 1.32% and a positive return on equity of 1.43%. Bandwidth's quarterly revenue was up 3.4% on a year-over-year basis. During the same period last year, the firm posted $0.29 earnings per share.

Insider Transactions at Bandwidth

In other news, General Counsel Richard Brandon Asbill sold 1,914 shares of the firm's stock in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $14.47, for a total value of $27,695.58. Following the transaction, the general counsel owned 47,014 shares in the company, valued at approximately $680,292.58. This trade represents a 3.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO David A. Morken sold 4,999 shares of the firm's stock in a transaction that occurred on Thursday, May 29th. The stock was sold at an average price of $14.47, for a total transaction of $72,335.53. Following the completion of the transaction, the chief executive officer owned 6,964 shares in the company, valued at $100,769.08. This represents a 41.79% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 44,596 shares of company stock valued at $658,682. 6.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in Bandwidth by 0.9% in the first quarter. Vanguard Group Inc. now owns 1,785,698 shares of the company's stock valued at $23,393,000 after acquiring an additional 16,671 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Bandwidth by 9.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,249,120 shares of the company's stock valued at $21,260,000 after acquiring an additional 112,269 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in Bandwidth by 15.3% in the fourth quarter. Renaissance Technologies LLC now owns 651,300 shares of the company's stock valued at $11,085,000 after acquiring an additional 86,200 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its holdings in Bandwidth by 16.6% in the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 611,880 shares of the company's stock valued at $8,016,000 after acquiring an additional 87,294 shares in the last quarter. Finally, Nuveen LLC bought a new stake in Bandwidth in the first quarter valued at $7,916,000. Institutional investors own 68.53% 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.