Bandwidth (NASDAQ:BAND) Raised to Strong-Buy at Wall Street Zen

Bandwidth (NASDAQ:BAND) was upgraded by investment analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a report released on Saturday.

Other analysts also recently issued reports about the stock. 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 report on Friday, April 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a report on Monday, April 20th. Zacks Research upgraded shares of Bandwidth from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 7th. Citizens Jmp increased their price objective on shares of Bandwidth from $45.00 to $70.00 and gave the stock a “market outperform” rating in a research note on Friday, May 15th. Finally, Citigroup restated an “outperform” rating on shares of Bandwidth in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Bandwidth presently has a consensus rating of “Moderate Buy” and an average target price of $43.25.

Bandwidth Price Performance

BAND stock opened at $51.39 on Friday. 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 stock has a market capitalization of $1.65 billion, a P/E ratio of -135.24 and a beta of 2.93. The business has a 50-day moving average of $46.51 and a 200-day moving average of $25.98. Bandwidth has a fifty-two week low of $12.50 and a fifty-two week high of $75.98.

Bandwidth (NASDAQ:BAND) last announced its earnings results on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.06. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.The business had revenue of $208.78 million for the quarter, compared to analyst estimates of $201.58 million. 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, sell-side analysts anticipate that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Bandwidth news, insider Kade Ross sold 20,000 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $51.56, for a total value of $1,031,200.00. Following the completion of the sale, the insider owned 43,894 shares in the company, valued at $2,263,174.64. This trade represents a 31.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the stock in a transaction on Friday, June 5th. The shares were sold at an average price of $72.03, for a total transaction of $2,104,284.42. Following the completion of the sale, the general counsel owned 3,000 shares of the company’s stock, valued at approximately $216,090. This represents a 90.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 127,269 shares of company stock valued at $7,192,523 in the last ninety days. 5.26% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bandwidth

Institutional investors and hedge funds have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership lifted its stake in Bandwidth by 299.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock valued at $12,268,000 after purchasing an additional 516,117 shares during the last quarter. Portolan Capital Management LLC grew its holdings in Bandwidth by 115.8% during the third quarter. Portolan Capital Management LLC now owns 745,802 shares of the company’s stock worth $12,433,000 after purchasing an additional 400,231 shares during the period. Bastion Asset Management Inc. acquired a new position in Bandwidth during the first quarter worth approximately $6,592,000. CSM Advisors LLC acquired a new position in Bandwidth during the fourth quarter worth approximately $5,342,000. Finally, AQR Capital Management LLC raised its stake in Bandwidth by 49.1% in the second quarter. AQR Capital Management LLC now owns 587,305 shares of the company’s stock valued at $9,338,000 after buying an additional 193,398 shares during the period. 68.53% of the stock is owned by institutional investors.

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.