Bandwidth Inc. (NASDAQ:BAND) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Bandwidth Inc. (NASDAQ:BAND) have been given an average recommendation of “Moderate Buy” by the seven brokerages that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, five have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $43.25.

A number of equities analysts have recently weighed in on BAND shares. B. Riley Financial increased their target price on Bandwidth from $20.00 to $27.00 and gave the stock a “buy” rating in a research note on Friday, April 17th. Zacks Research upgraded Bandwidth from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 7th. Citigroup restated an “outperform” rating on shares of Bandwidth in a research note on Thursday, April 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research note on Monday, April 20th. Finally, Wall Street Zen lowered Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 16th.

Insider Activity

In other Bandwidth 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 transaction, the insider owned 50,535 shares in the company, valued at $2,289,235.50. This trade represents a 15.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Devesh Agarwal sold 15,000 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total value of $858,600.00. Following the transaction, the chief operating officer owned 61,414 shares in the company, valued at approximately $3,515,337.36. This trade represents a 19.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 127,269 shares of company stock worth $7,192,523. 5.26% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Bandwidth

A number of hedge funds have recently added to or reduced their stakes in the stock. Empowered Funds LLC increased its stake in Bandwidth by 9.9% during the 1st quarter. Empowered Funds LLC now owns 154,432 shares of the company’s stock worth $2,752,000 after acquiring an additional 13,961 shares during the period. Quantinno Capital Management LP increased its stake in Bandwidth by 248.2% during the 1st quarter. Quantinno Capital Management LP now owns 76,836 shares of the company’s stock worth $1,369,000 after acquiring an additional 54,771 shares during the period. Renaissance Technologies LLC increased its stake in Bandwidth by 4.2% during the 1st quarter. Renaissance Technologies LLC now owns 644,981 shares of the company’s stock worth $11,494,000 after acquiring an additional 26,081 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in Bandwidth by 299.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock worth $12,268,000 after acquiring an additional 516,117 shares during the period. Finally, Walleye Capital LLC bought a new position in shares of Bandwidth in the 1st quarter valued at $1,069,000. Institutional investors own 68.53% of the company’s stock.

Bandwidth Price Performance

Shares of NASDAQ BAND opened at $65.34 on Friday. The firm has a market cap of $2.09 billion, a P/E ratio of -171.95 and a beta of 2.93. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.37. Bandwidth has a 1-year low of $12.50 and a 1-year high of $75.98. The business’s 50 day moving average is $43.15 and its 200-day moving average is $24.67.

Bandwidth (NASDAQ:BAND) last announced its earnings results on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.06. The company had revenue of $208.78 million for the quarter, compared to analyst estimates of $201.58 million. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. Equities research analysts predict that Bandwidth will post 0.55 earnings per share for the current year.

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.