Bandwidth (NASDAQ:BAND) Shares Down 8.8% – Here’s Why

Bandwidth Inc. (NASDAQ:BAND) shares traded down 8.8% during trading on Monday . The stock traded as low as $51.56 and last traded at $51.8410. 471,737 shares were traded during trading, a decline of 46% from the average daily volume of 871,348 shares. The stock had previously closed at $56.87.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on BAND. Wall Street Zen lowered shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Sunday, June 28th. Zacks Research downgraded shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Weiss Ratings downgraded shares of Bandwidth from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, August 27th. Citigroup restated a “market outperform” rating on shares of Bandwidth in a report on Monday, July 20th. Finally, Piper Sandler boosted their price target on Bandwidth from $38.00 to $52.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 19th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $59.80.

Bandwidth Stock Up 2.3%

The business’s 50 day moving average is $54.05 and its 200-day moving average is $43.83. 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 $1.61 billion, a price-to-earnings ratio of -172.69 and a beta of 3.03.

Bandwidth (NASDAQ:BAND) last released its earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.01. The firm had revenue of $219.90 million during the quarter, compared to analyst estimates of $217.62 million. Bandwidth had a net margin of 0.27% and a return on equity of 1.85%. The company’s quarterly revenue 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. Equities analysts anticipate that Bandwidth Inc. will post 0.65 EPS for the current fiscal year.

Insider Activity

In other news, CEO David A. Morken sold 5,128 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $49.15, for a total transaction of $252,041.20. Following the completion of the transaction, the chief executive officer directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 completion of the sale, the chief operating officer directly owned 79,138 shares of the company’s stock, valued at approximately $3,889,632.70. This trade represents a 5.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 23,550 shares of company stock worth $1,154,782 over the last 90 days. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Hedge funds have recently modified their holdings of the company. Tidal Investments LLC bought a new position in Bandwidth in the second quarter worth $1,451,000. Engineers Gate Manager LP bought a new stake in shares of Bandwidth in the 2nd quarter worth about $2,218,000. Integrated Wealth Concepts LLC bought a new position in Bandwidth during the 2nd quarter valued at about $94,000. Corient Private Wealth LP bought a new position in Bandwidth during the 2nd quarter valued at about $238,000. Finally, TD Waterhouse Canada Inc. acquired a new position in Bandwidth in the second quarter valued at about $70,000. Institutional investors 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.