Bandwidth Inc. (NASDAQ:BAND) Sees Significant Increase in Short Interest

Bandwidth Inc. (NASDAQ:BAND) was the recipient of a significant increase in short interest in June. As of June 30th, there was short interest totaling 3,504,208 shares, an increase of 127.4% from the June 15th total of 1,540,791 shares. Currently, 11.6% of the shares of the stock are short sold. Based on an average trading volume of 1,966,359 shares, the days-to-cover ratio is currently 1.8 days.

Insider Activity

In other news, CEO David A. Morken sold 4,632 shares of the stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $272,593.20. Following the completion of the transaction, the chief executive officer owned 7,198 shares of the company’s stock, valued at approximately $423,602.30. This represents a 39.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Kade Ross sold 20,000 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $51.56, for a total transaction of $1,031,200.00. Following the completion of the transaction, the insider directly owned 43,894 shares of the company’s stock, valued at $2,263,174.64. This trade represents a 31.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 127,269 shares of company stock valued at $7,192,523. Corporate insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

A number of large investors have recently bought and sold shares of BAND. Vanguard Group Inc. raised its position in shares of 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 in 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 purchasing an additional 91,812 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in 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 during the period. State Street Corp grew its stake in 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 during the period. Finally, Renaissance Technologies LLC grew its stake in Bandwidth by 4.2% during the first quarter. Renaissance Technologies LLC now owns 644,981 shares of the company’s stock worth $11,494,000 after purchasing an additional 26,081 shares during the period. 68.53% of the stock is currently owned by institutional investors and hedge funds.

Bandwidth Stock Up 2.7%

Shares of NASDAQ BAND opened at $75.77 on Wednesday. The company’s 50 day moving average price is $59.96 and its 200-day moving average price is $31.86. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.94 and a current ratio of 0.94. Bandwidth has a 52-week low of $12.50 and a 52-week high of $79.08. The company has a market capitalization of $2.43 billion, a P/E ratio of -199.39 and a beta of 2.92.

Bandwidth (NASDAQ:BAND) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.06. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. The company had revenue of $208.78 million during the quarter, compared to analysts’ expectations 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. Equities analysts forecast that Bandwidth will post 0.55 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on BAND shares. Needham & Company LLC lifted their price target on Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Wall Street Zen downgraded Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Bandwidth in a research report on Monday, April 20th. Zacks Research downgraded Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. Finally, Citigroup reiterated an “outperform” rating on shares of Bandwidth in a research report on Thursday, April 30th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $57.75.

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.