Zacks Research Upgrades Bandwidth (NASDAQ:BAND) to "Strong-Buy"

Key Points

• Zacks Research upgraded Bandwidth from hold to strong-buy, adding to a generally positive analyst backdrop that includes multiple buy ratings and an average Moderate Buy rating with a $31.00 target price.
• Bandwidth’s latest quarterly results beat expectations, with EPS of $0.38 versus $0.32 expected and revenue of $208.78 million topping estimates of $201.58 million.
• Despite the bullish analyst sentiment, insiders have been selling shares recently, including transactions by Rebecca Bottorff and Kade Ross, while institutional investors continue to hold the majority of the stock.

Bandwidth (NASDAQ:BAND - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Thursday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. Needham & Company LLC raised their price target on Bandwidth from $20.00 to $45.00 and gave the company a "buy" rating in a report on Thursday, April 30th. B. Riley Financial raised their price target on Bandwidth from $20.00 to $27.00 and gave the company a "buy" rating in a report on Friday, April 17th. Citigroup reiterated an "outperform" rating on shares of Bandwidth in a report on Thursday, April 30th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Bandwidth in a report on Monday, April 20th. Finally, Wall Street Zen raised shares of Bandwidth from a "hold" rating to a "strong-buy" rating in a research note on Saturday, May 2nd. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $31.00.

Bandwidth Price Performance

BAND opened at $49.89 on Thursday. Bandwidth has a one year low of $12.50 and a one year high of $50.00. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94. The company's 50 day simple moving average is $20.13 and its 200-day simple moving average is $16.49. The stock has a market capitalization of $1.57 billion, a P/E ratio of -131.29 and a beta of 2.72.

Bandwidth (NASDAQ:BAND - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.32 by $0.06. The business had revenue of $208.78 million for the quarter, compared to analysts' expectations of $201.58 million. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. Sell-side analysts anticipate that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Rebecca Bottorff sold 9,425 shares of the firm's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $45.30, for a total transaction of $426,952.50. Following the sale, the insider owned 50,535 shares of the company's stock, valued at approximately $2,289,235.50. This trade represents a 15.72% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Kade Ross sold 10,000 shares of the firm's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $31.59, for a total value of $315,900.00. Following the sale, the insider directly owned 63,894 shares in the company, valued at $2,018,411.46. The trade was a 13.53% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 52,551 shares of company stock valued at $1,250,804. 5.26% of the stock is owned by company insiders.

Hedge Funds Weigh In On Bandwidth

Several institutional investors have recently modified their holdings of BAND. Rhumbline Advisers lifted its holdings in shares of Bandwidth by 15.0% during the 2nd quarter. Rhumbline Advisers now owns 40,927 shares of the company's stock valued at $651,000 after purchasing an additional 5,324 shares in the last quarter. Quantbot Technologies LP bought a new position in shares of Bandwidth during the 2nd quarter valued at about $128,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Bandwidth by 26.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company's stock valued at $5,933,000 after purchasing an additional 78,360 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Bandwidth by 4.7% during the 2nd quarter. Invesco Ltd. now owns 56,367 shares of the company's stock valued at $896,000 after purchasing an additional 2,532 shares in the last quarter. Finally, Jump Financial LLC bought a new stake in Bandwidth in the 2nd quarter valued at $221,000. Institutional investors own 68.53% of the company's stock.

About Bandwidth

Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth's solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.

Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.

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