Bandwidth (NASDAQ:BAND) Trading Down 8.5% – What’s Next?

Bandwidth Inc. (NASDAQ:BAND) shares dropped 8.5% during trading on Thursday . The stock traded as low as $47.60 and last traded at $47.84. Approximately 264,123 shares changed hands during trading, a decline of 70% from the average daily volume of 878,495 shares. The stock had previously closed at $52.30.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Citizens Jmp increased their price target on Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research report on Monday, July 20th. Citigroup reissued a “market outperform” rating on shares of Bandwidth in a research report on Monday, July 20th. B. Riley Financial boosted their price objective on Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Zacks Research lowered shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 3rd. Finally, Needham & Company LLC reiterated a “buy” rating on shares of Bandwidth in a research note on Thursday. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $59.80.

Bandwidth Price Performance

The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04. The firm has a market cap of $1.53 billion, a price-to-earnings ratio of -164.24 and a beta of 2.96. The stock has a 50-day moving average price of $57.54 and a 200 day moving average price of $39.18.

Bandwidth (NASDAQ:BAND) last announced its earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.36 by $0.01. The firm had revenue of $219.90 million during the quarter, compared to analysts’ expectations of $217.62 million. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.Bandwidth’s revenue for the quarter was up 22.2% on a year-over-year basis. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. As a group, equities research analysts forecast that Bandwidth Inc. will post 0.65 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Rebecca Bottorff sold 2,176 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $58.85, for a total value of $128,057.60. Following the completion of the sale, the insider directly owned 5,620 shares of the company’s stock, valued at approximately $330,737. This represents a 27.91% 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 this hyperlink. Also, COO Devesh Agarwal sold 4,066 shares of the firm’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $58.85, for a total transaction of $239,284.10. Following the transaction, the chief operating officer owned 68,579 shares in the company, valued at approximately $4,035,874.15. This trade represents a 5.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 52,844 shares of company stock valued at $3,517,318. 5.26% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of BAND. Tower Research Capital LLC TRC lifted its holdings in shares of Bandwidth by 183.7% during the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock worth $60,000 after purchasing an additional 2,445 shares during the period. Raymond James Financial Inc. purchased a new position in Bandwidth in the 2nd quarter valued at approximately $85,000. Quantbot Technologies LP acquired a new position in shares of Bandwidth during the 2nd quarter worth $128,000. State of Wyoming raised its position in Bandwidth by 104.6% during the fourth 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, Diversified Trust Co acquired a new position in shares of Bandwidth during the 1st quarter worth approximately $184,000. 68.53% of the stock is currently owned by hedge funds and other 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.