Bandwidth (NASDAQ:BAND) Shares Gap Down – Should You Sell?

Bandwidth Inc. (NASDAQ:BAND)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $65.34, but opened at $59.56. Bandwidth shares last traded at $58.1910, with a volume of 359,854 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on BAND. Needham & Company LLC boosted their price target on Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a report on Thursday, May 14th. Citizens Jmp boosted their price target on Bandwidth from $45.00 to $70.00 and gave the company a “market outperform” rating in a report on Friday, May 15th. Zacks Research raised Bandwidth from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 7th. B. Riley Financial boosted their price target on Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a report on Friday, April 17th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Bandwidth in a report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Bandwidth presently has a consensus rating of “Moderate Buy” and a consensus price target of $43.25.

Bandwidth Stock Performance

The stock has a market cap of $1.80 billion, a P/E ratio of -148.37 and a beta of 2.93. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37. The business has a 50 day moving average price of $43.15 and a two-hundred day moving average price of $24.74.

Bandwidth (NASDAQ:BAND) last announced 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. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.The company had revenue of $208.78 million during 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 forecast that Bandwidth Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity at Bandwidth

In related news, COO Devesh Agarwal sold 15,000 shares of the stock in a transaction that occurred 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 transaction, the chief operating officer directly owned 61,414 shares of the company’s stock, valued at approximately $3,515,337.36. This represents a 19.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO David A. Morken sold 4,632 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $272,593.20. Following the transaction, the chief executive officer directly owned 7,198 shares of the company’s stock, valued at approximately $423,602.30. The trade was a 39.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 127,269 shares of company stock valued at $7,192,523 in the last 90 days. 5.26% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bandwidth

Several institutional investors have recently modified their holdings of BAND. Tower Research Capital LLC TRC lifted its stake in shares of Bandwidth by 183.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock valued at $60,000 after purchasing an additional 2,445 shares during the last quarter. Raymond James Financial Inc. bought a new stake in shares of Bandwidth during the 2nd quarter worth approximately $85,000. Quantbot Technologies LP bought a new stake in shares of Bandwidth during the 2nd quarter worth approximately $128,000. State of Wyoming lifted its stake in shares of Bandwidth by 104.6% during the 4th quarter. State of Wyoming now owns 8,756 shares of the company’s stock worth $135,000 after acquiring an additional 4,476 shares during the last quarter. Finally, Harbor Capital Advisors Inc. lifted its stake in shares of Bandwidth by 35.1% during the 4th quarter. Harbor Capital Advisors Inc. now owns 10,143 shares of the company’s stock worth $157,000 after acquiring an additional 2,634 shares during the last quarter. 68.53% of the stock is owned by 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.