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

Shares of Bandwidth Inc. (NASDAQ:BAND) have been given an average recommendation of “Moderate Buy” by the seven ratings firms that are currently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, one has given a hold rating and five have assigned a buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $43.25.

A number of equities analysts have recently commented on the company. Wall Street Zen lowered Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Needham & Company LLC raised their target price on Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Zacks Research lowered Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. B. Riley Financial upped their price target on Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a research report on Friday, April 17th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research report on Monday, April 20th.

Bandwidth Stock Performance

NASDAQ:BAND opened at $67.56 on Wednesday. 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 business has a fifty day simple moving average of $55.60 and a two-hundred day simple moving average of $29.76. Bandwidth has a 1 year low of $12.50 and a 1 year high of $75.98. The company has a market capitalization of $2.16 billion, a P/E ratio of -177.79 and a beta of 2.92.

Bandwidth (NASDAQ:BAND) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.38 EPS for the quarter, beating analysts’ consensus estimates 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 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. On average, analysts expect that Bandwidth will post 0.55 earnings per share for the current year.

Insiders Place Their Bets

In other Bandwidth news, General Counsel Richard Brandon Asbill sold 29,214 shares of the firm’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $72.03, for a total value of $2,104,284.42. Following the completion of the transaction, the general counsel directly owned 3,000 shares of the company’s stock, valued at $216,090. This trade represents a 90.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Kade Ross sold 1,588 shares of the business’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $58.85, for a total transaction of $93,453.80. Following the transaction, the insider owned 47,996 shares of the company’s stock, valued at $2,824,564.60. This trade represents a 3.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 127,269 shares of company stock worth $7,192,523. Company insiders own 5.26% of the company’s stock.

Hedge Funds Weigh In On Bandwidth

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BAND. Vanguard Group Inc. increased its stake in Bandwidth by 3.5% in the 3rd quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company’s stock worth $33,149,000 after acquiring an additional 67,428 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Bandwidth by 6.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company’s stock valued at $27,647,000 after acquiring an additional 91,812 shares during the last quarter. Portolan Capital Management LLC boosted its position in shares of Bandwidth by 115.8% during the 3rd quarter. Portolan Capital Management LLC now owns 745,802 shares of the company’s stock valued at $12,433,000 after acquiring an additional 400,231 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Bandwidth by 299.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock worth $12,268,000 after purchasing an additional 516,117 shares in the last quarter. Finally, State Street Corp grew its holdings in shares of Bandwidth by 2.6% during the fourth quarter. State Street Corp now owns 649,426 shares of the company’s stock worth $10,034,000 after purchasing an additional 16,654 shares in the last quarter. 68.53% of the stock is currently 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.