Bandwidth (NASDAQ:BAND) Stock Price Down 9.7% – Time to Sell?

Shares of Bandwidth Inc. (NASDAQ:BAND) fell 9.7% during mid-day trading on Wednesday. The company traded as low as $47.57 and last traded at $47.6340. Approximately 254,525 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 870,783 shares. The stock had previously closed at $52.73.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on BAND. B. Riley Financial raised their price objective on Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Citizens Jmp lifted their price target on shares of Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research note on Monday, July 20th. Piper Sandler raised their target price on Bandwidth from $38.00 to $52.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 19th. Needham & Company LLC restated a “buy” rating on shares of Bandwidth in a report on Thursday, August 20th. Finally, Wall Street Zen downgraded shares of Bandwidth from a “buy” rating to a “hold” rating in a research report on Saturday, September 19th. Four 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 currently has a consensus rating of “Moderate Buy” and an average target price of $59.83.

Bandwidth Price Performance

The business has a fifty day moving average of $52.53 and a 200 day moving average of $49.69. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 0.87. The firm has a market cap of $1.50 billion, a P/E ratio of -159.75, a PEG ratio of 4.61 and a beta of 3.01.

Bandwidth (NASDAQ:BAND) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.36 by $0.01. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The business had revenue of $219.90 million during the quarter, compared to analysts’ expectations of $217.62 million. The company’s revenue for the quarter 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. On average, sell-side analysts anticipate that Bandwidth Inc. will post 0.65 earnings per share for the current year.

Insider Transactions at Bandwidth

In other Bandwidth news, General Counsel Richard Asbill sold 1,832 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $90,042.80. Following the transaction, the general counsel directly owned 7,550 shares in the company, valued at approximately $371,082.50. This trade represents a 19.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David A. Morken sold 5,128 shares of Bandwidth stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $252,041.20. Following the sale, the chief executive officer owned 6,702 shares in the company, valued at $329,403.30. The trade was a 43.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 23,550 shares of company stock valued at $1,154,782. 5.26% of the stock is owned by insiders.

Hedge Funds Weigh In On Bandwidth

A number of large investors have recently modified their holdings of BAND. Dimensional Fund Advisors LP grew its holdings in shares of Bandwidth by 6.3% during the first quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company’s stock worth $27,647,000 after purchasing an additional 91,812 shares in the last quarter. Wellington Management Group LLP lifted its position in Bandwidth by 138.9% in the second 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 raised its position in Bandwidth by 299.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock valued at $12,268,000 after purchasing an additional 516,117 shares during the last quarter. Renaissance Technologies LLC increased its position in 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 during the period. Finally, Assenagon Asset Management S.A. lifted its stake in shares of Bandwidth by 51.1% in the 1st quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company’s stock valued at $8,765,000 after purchasing an additional 166,423 shares during the period. 68.53% of the stock is currently owned by institutional investors.

About Bandwidth

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and related services for businesses to build voice, messaging and emergency communications into their software and applications. Its platform is designed for enterprises, communications service providers and technology companies that need programmable communications capabilities.

The company’s offerings include voice calling, text messaging, toll-free and local phone numbers, authentication messaging, and 911 emergency services.