Bandwidth (NASDAQ:BAND) Shares Up 9.8% – Should You Buy?

Bandwidth Inc. (NASDAQ:BAND) shares traded up 9.8% during trading on Tuesday . The company traded as high as $57.95 and last traded at $59.6420. Approximately 108,981 shares changed hands during trading, a decline of 87% from the average daily volume of 870,549 shares. The stock had previously closed at $54.31.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the company. Citigroup reaffirmed a “market outperform” rating on shares of Bandwidth in a research report on Monday, July 20th. Weiss Ratings downgraded Bandwidth from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, August 27th. B. Riley Financial boosted their price target on Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Bank of America began coverage on Bandwidth in a research note on Wednesday, September 16th. They issued a “neutral” rating and a $60.00 price target on the stock. Finally, Citizens Jmp raised their target price on Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research note on Monday, July 20th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $59.83.

Bandwidth Price Performance

The stock has a market cap of $1.83 billion, a P/E ratio of -195.66, a PEG ratio of 4.39 and a beta of 3.03. The company has a 50 day simple moving average of $52.16 and a 200 day simple moving average of $44.84. The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 0.87.

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

Insider Buying and Selling at Bandwidth

In other Bandwidth news, insider Kade Ross sold 1,616 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $79,426.40. Following the completion of the transaction, the insider directly owned 48,071 shares in the company, valued at $2,362,689.65. The trade was a 3.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Rebecca Bottorff sold 2,713 shares of the company’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $133,343.95. Following the sale, the insider owned 10,704 shares of the company’s stock, valued at approximately $526,101.60. This represents a 20.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 23,550 shares of company stock worth $1,154,782 in the last 90 days. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its holdings 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 in the last quarter. Wellington Management Group LLP boosted its stake in shares of Bandwidth by 138.9% in the 2nd quarter. Wellington Management Group LLP now owns 911,893 shares of the company’s stock valued at $57,723,000 after purchasing an additional 530,182 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Bandwidth by 299.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock valued at $12,268,000 after acquiring an additional 516,117 shares during the last quarter. Renaissance Technologies LLC boosted its position in shares of Bandwidth by 4.2% during the 1st quarter. Renaissance Technologies LLC now owns 644,981 shares of the company’s stock valued at $11,494,000 after purchasing an additional 26,081 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its position in shares of Bandwidth by 51.1% during the 1st quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company’s stock worth $8,765,000 after buying an additional 166,423 shares during the period. Institutional investors and hedge funds own 68.53% of the company’s stock.

About Bandwidth

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and communications services for businesses, software developers and service providers. Its platform enables organizations to integrate voice calling, text messaging and other communications capabilities into applications, websites and business workflows.

The company’s offerings include voice and messaging APIs, toll-free and local telephone numbers, emergency communications and 911 access, authentication and related communications tools.