Bandwidth (NASDAQ:BAND) Downgraded to “Buy” Rating by Wall Street Zen

Wall Street Zen lowered shares of Bandwidth (NASDAQ:BAND) from a strong-buy rating to a buy rating in a research report released on Saturday morning.

Several other research firms have also recently issued reports on BAND. B. Riley Financial lifted their price objective on shares of Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a research report on Friday, April 17th. Zacks Research upgraded shares of Bandwidth from a “hold” rating to a “strong-buy” rating in a research report on Thursday, May 7th. Citigroup reiterated an “outperform” rating on shares of Bandwidth in a research report on Thursday, April 30th. Needham & Company LLC boosted their price target on shares of Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research report on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Bandwidth has a consensus rating of “Moderate Buy” and an average price target of $43.25.

Bandwidth Trading Up 3.6%

Bandwidth stock opened at $53.97 on Friday. The stock has a market cap of $1.73 billion, a P/E ratio of -142.03 and a beta of 2.72. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94. Bandwidth has a 1 year low of $12.50 and a 1 year high of $56.37. The firm’s 50 day moving average price is $24.45 and its 200-day moving average price is $17.95.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.06. The firm 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. On average, equities analysts predict that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Insider Activity at Bandwidth

In other news, COO Devesh Agarwal sold 8,251 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $52.11, for a total transaction of $429,959.61. Following the completion of the sale, the chief operating officer directly owned 76,414 shares of the company’s stock, valued at approximately $3,981,933.54. The trade was a 9.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Daryl E. Raiford sold 16,100 shares of the business’s stock in a transaction on Friday, March 13th. The shares were sold at an average price of $15.19, for a total transaction of $244,559.00. Following the sale, the chief financial officer directly owned 36,645 shares of the company’s stock, valued at $556,637.55. This represents a 30.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 92,551 shares of company stock valued at $3,324,556 over the last ninety days. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

A number of large investors have recently made changes to their positions in BAND. Tower Research Capital LLC TRC boosted its stake in shares of Bandwidth by 183.7% during the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock valued at $60,000 after purchasing an additional 2,445 shares during the period. State of Wyoming purchased a new stake in shares of Bandwidth during the third quarter valued at $71,000. Raymond James Financial Inc. purchased a new stake in shares of Bandwidth during the second quarter valued at $85,000. Quantbot Technologies LP purchased a new stake in shares of Bandwidth during the second quarter valued at $128,000. Finally, Harbor Capital Advisors Inc. boosted its stake in shares of Bandwidth by 35.1% during the fourth quarter. Harbor Capital Advisors Inc. now owns 10,143 shares of the company’s stock valued at $157,000 after purchasing an additional 2,634 shares during the period. 68.53% of the stock is owned by hedge funds and other institutional investors.

Key Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Citizens JMP raised its price target on Bandwidth from $45 to $70 and reiterated a market outperform rating, signaling improved confidence in the company’s growth outlook.
• Positive Sentiment: Needham & Company also boosted its price target from $45 to $60 and kept a buy rating, adding to the positive analyst momentum around BAND.
• Positive Sentiment: A separate report highlighted an even larger target increase for Bandwidth, reinforcing the view that analysts see more upside after the stock’s strong post-earnings run. Article: Bandwidth (BAND) price target increased by 86.73% to 46.66
• Neutral Sentiment: Bandwidth’s recent quarterly results were solid, with earnings and revenue both beating estimates, which has helped support the stock’s recent move higher.
• Negative Sentiment: COO Devesh Agarwal sold shares in two separate transactions this week, including 8,251 shares on May 14 and 11,749 shares on May 13. While insider sales do not always signal trouble, the timing may temper some investor enthusiasm.

Bandwidth Company Profile

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.