Bandwidth (NASDAQ:BAND) Shares Up 10.1% – Still a Buy?

Bandwidth Inc. (NASDAQ:BAND)’s stock price shot up 10.1% during trading on Monday . The stock traded as high as $43.10 and last traded at $43.1110. 360,462 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 876,651 shares. The stock had previously closed at $39.14.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Weiss Ratings upgraded shares of Bandwidth from a “sell (d-)” rating to a “hold (c-)” rating in a research report on Friday. B. Riley Financial raised their target price on Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Wall Street Zen downgraded Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Citizens Jmp upped their price target on Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research report on Monday, July 20th. Finally, Zacks Research lowered Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, Bandwidth currently has an average rating of “Moderate Buy” and a consensus price target of $61.75.

Bandwidth Stock Performance

The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04. The firm has a market capitalization of $1.37 billion, a price-to-earnings ratio of -147.84 and a beta of 2.92. The firm’s fifty day moving average is $61.34 and its 200 day moving average is $35.85.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.01. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The firm had revenue of $219.90 million for the quarter, compared to analyst estimates of $217.62 million. The company’s quarterly revenue was up 22.2% on a year-over-year basis. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. On average, analysts predict that Bandwidth Inc. will post 0.53 EPS for the current fiscal year.

Insider Buying and Selling at Bandwidth

In related news, COO Devesh Agarwal sold 15,000 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total transaction of $858,600.00. Following the completion of the sale, the chief operating officer directly owned 61,414 shares in the company, valued at approximately $3,515,337.36. This trade represents a 19.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Daryl E. Raiford sold 4,228 shares of Bandwidth stock in a transaction on Monday, June 1st. The shares were sold at an average price of $64.15, for a total value of $271,226.20. Following the sale, the chief financial officer directly owned 42,919 shares of the company’s stock, valued at approximately $2,753,253.85. The trade was a 8.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 107,844 shares of company stock worth $6,449,671 over the last 90 days. 5.26% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bandwidth

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Deutsche Bank AG lifted its holdings in shares of Bandwidth by 6.0% during the 4th quarter. Deutsche Bank AG now owns 18,343 shares of the company’s stock valued at $283,000 after buying an additional 1,043 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in Bandwidth by 2.1% in the third quarter. Mercer Global Advisors Inc. ADV now owns 53,681 shares of the company’s stock worth $895,000 after buying an additional 1,129 shares during the last quarter. Franklin Resources Inc. increased its holdings in Bandwidth by 3.6% in the fourth quarter. Franklin Resources Inc. now owns 58,141 shares of the company’s stock worth $898,000 after buying an additional 2,043 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Bandwidth by 8.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,896 shares of the company’s stock worth $462,000 after buying an additional 2,250 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its position in 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 acquiring an additional 2,445 shares in the last quarter. 68.53% of the stock is owned by hedge funds and other institutional investors.

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.