Bandwidth (NASDAQ:BAND) Trading 5% Higher – Here’s Why

Bandwidth Inc. (NASDAQ:BAND) shares traded up 5% during trading on Friday . The company traded as high as $72.78 and last traded at $72.3580. Approximately 287,569 shares changed hands during trading, a decline of 65% from the average daily volume of 820,309 shares. The stock had previously closed at $68.88.

Analyst Ratings Changes

Several equities research analysts have issued reports on BAND shares. Needham & Company LLC raised their price target on shares of Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 3rd. Wall Street Zen downgraded Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Weiss Ratings reissued a “sell (d-)” rating on shares of Bandwidth in a research report on Monday, April 20th. Finally, Citizens Jmp increased their target price on Bandwidth from $45.00 to $70.00 and gave the stock a “market outperform” rating in a research report on Friday, May 15th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Bandwidth presently has a consensus rating of “Moderate Buy” and a consensus target price of $57.75.

Bandwidth Price Performance

The stock has a market cap of $2.28 billion, a PE ratio of -188.10 and a beta of 2.92. 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 company’s fifty day moving average is $60.85 and its 200 day moving average is $32.64.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.06. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. 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. As a group, sell-side analysts anticipate that Bandwidth Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Transactions at Bandwidth

In other news, CFO Daryl E. Raiford sold 4,228 shares of the company’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $64.15, for a total value of $271,226.20. Following the completion of the sale, the chief financial officer owned 42,919 shares of the company’s stock, valued at $2,753,253.85. This represents a 8.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $72.03, for a total value of $2,104,284.42. Following the completion of the sale, the general counsel owned 3,000 shares of the company’s stock, valued at approximately $216,090. This trade represents a 90.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 127,269 shares of company stock worth $7,192,523 in the last quarter. 5.26% of the stock is owned by corporate insiders.

Institutional Trading of Bandwidth

Several large investors have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership raised its stake in shares of 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 purchasing an additional 516,117 shares during the period. Bastion Asset Management Inc. acquired a new position in Bandwidth in the 1st quarter worth $6,592,000. CSM Advisors LLC purchased a new position in Bandwidth in the 4th quarter valued at about $5,342,000. AQR Capital Management LLC grew its stake in shares of Bandwidth by 49.1% during the second quarter. AQR Capital Management LLC now owns 587,305 shares of the company’s stock valued at $9,338,000 after acquiring an additional 193,398 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its position in shares of Bandwidth by 51.1% during the first quarter. Assenagon Asset Management S.A. now owns 491,873 shares of the company’s stock worth $8,765,000 after acquiring an additional 166,423 shares during the last quarter. Institutional investors and hedge funds own 68.53% of the company’s stock.

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.