Bandwidth (NASDAQ:BAND) Stock Price Down 14.3% – Here’s What Happened

Bandwidth Inc. (NASDAQ:BAND)’s stock price was down 14.3% on Thursday. The stock traded as low as $42.43 and last traded at $40.1410. Approximately 86,164 shares traded hands during trading, a decline of 90% from the average session volume of 868,857 shares. The stock had previously closed at $46.82.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. Citizens Jmp boosted their target price on shares of Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research note on Monday, July 20th. Piper Sandler raised their price target on shares of Bandwidth from $38.00 to $52.00 and gave the company a “neutral” rating in a research report on Wednesday, August 19th. B. Riley Financial lifted their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Weiss Ratings raised shares of Bandwidth from a “sell (d+)” rating to a “hold (c)” rating in a report on Friday, October 9th. Finally, Zacks Research downgraded shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Four investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $59.29.

Bandwidth Trading Down 13.5%

The company has a debt-to-equity ratio of 0.87, a quick ratio of 2.04 and a current ratio of 2.04. The firm has a market capitalization of $1.30 billion, a price-to-earnings ratio of -139.66, a P/E/G ratio of 3.99 and a beta of 3.01. The company has a 50 day moving average price of $52.11 and a two-hundred day moving average price of $50.89.

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. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%. The firm had revenue of $219.90 million for the quarter, compared to analyst estimates 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, research analysts forecast that Bandwidth Inc. will post 0.64 EPS for the current year.

Insider Activity at Bandwidth

In other Bandwidth news, insider Rebecca Bottorff sold 2,713 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $133,343.95. Following the transaction, the insider directly owned 10,704 shares of the company’s stock, valued at $526,101.60. This trade represents a 20.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Devesh Agarwal sold 4,869 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $239,311.35. Following the transaction, the chief operating officer directly owned 79,138 shares in the company, valued at approximately $3,889,632.70. The trade was a 5.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 25,050 shares of company stock valued at $1,228,342 in the last three months. Company insiders own 5.26% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of BAND. TD Waterhouse Canada Inc. purchased a new position in Bandwidth in the 2nd quarter valued at about $70,000. State of Alaska Department of Revenue boosted its holdings in Bandwidth by 43.1% in the 3rd quarter. State of Alaska Department of Revenue now owns 1,262 shares of the company’s stock worth $76,000 after buying an additional 380 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Bandwidth in the 2nd quarter worth about $94,000. Diversified Trust Co acquired a new stake in Bandwidth in the 1st quarter worth about $184,000. Finally, IMC Chicago LLC purchased a new stake in Bandwidth during the 1st quarter worth approximately $218,000. Institutional investors and hedge funds own 68.53% of the company’s stock.

About Bandwidth

Bandwidth Inc (NASDAQ:BAND) is a cloud communications company that provides application programming interfaces (APIs) and related network services for integrating voice, messaging and emergency communications into software applications. Its platform is designed for businesses, communications providers and technology companies that need to build communications capabilities into customer-facing products and internal workflows.

The company’s offerings include programmable voice, text messaging and toll-free messaging services, as well as emergency calling capabilities through its E911 solution.