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

Bandwidth Inc. (NASDAQ:BAND) shares traded down 8.8% on Thursday. The company traded as low as $52.49 and last traded at $52.4090. 460,151 shares traded hands during trading, a decline of 48% from the average session volume of 876,598 shares. The stock had previously closed at $57.47.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Weiss Ratings cut shares of Bandwidth from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, September 24th. Bank of America assumed coverage on Bandwidth in a research report on Wednesday, September 16th. They issued a “neutral” rating and a $60.00 price target on the stock. Wall Street Zen cut Bandwidth from a “buy” rating to a “hold” rating in a research note on Saturday, September 19th. Citizens Jmp increased 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. Finally, Citigroup restated a “market outperform” rating on shares of Bandwidth in a report on Monday, July 20th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Bandwidth has a consensus rating of “Hold” and an average price target of $59.83.

Bandwidth Stock Performance

The company has a market cap of $1.69 billion, a price-to-earnings ratio of -181.24, a price-to-earnings-growth ratio of 5.25 and a beta of 3.01. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04. The stock has a 50-day moving average price of $51.67 and a 200 day moving average price of $48.67.

Bandwidth (NASDAQ:BAND) last posted its earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 return on equity of 1.85% and a net margin of 0.27%.Bandwidth’s 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. As a group, analysts anticipate that Bandwidth Inc. will post 0.65 EPS for the current fiscal year.

Insider Buying and Selling at Bandwidth

In related news, CEO David A. Morken sold 5,128 shares of Bandwidth stock in a transaction that occurred 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 of the company’s stock, valued at approximately $329,403.30. This trade represents a 43.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Rebecca Bottorff sold 2,713 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 value of $133,343.95. Following the transaction, the insider directly owned 10,704 shares of the company’s stock, valued at approximately $526,101.60. This trade represents a 20.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 23,550 shares of company stock valued at $1,154,782 over the last quarter. 5.26% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. TD Waterhouse Canada Inc. bought a new position in Bandwidth in the second quarter valued at $70,000. Integrated Wealth Concepts LLC acquired a new position in shares of Bandwidth during the 2nd quarter worth about $94,000. Diversified Trust Co bought a new position in shares of Bandwidth in the 1st quarter valued at about $184,000. IMC Chicago LLC bought a new position in shares of Bandwidth in the 1st quarter valued at about $218,000. Finally, Corient Private Wealth LP acquired a new stake in shares of Bandwidth in the second quarter valued at about $238,000. 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 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.