Bandwidth (NASDAQ:BAND) Reaches New 12-Month High – Still a Buy?

Bandwidth Inc. (NASDAQ:BAND) hit a new 52-week high during mid-day trading on Friday . The company traded as high as $75.50 and last traded at $73.0410, with a volume of 573775 shares trading hands. The stock had previously closed at $73.19.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Citigroup restated an “outperform” rating on shares of Bandwidth in a research note on Thursday, April 30th. Zacks Research upgraded shares of Bandwidth from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 7th. Wall Street Zen lowered shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 16th. Needham & Company LLC raised their price objective on shares of Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research note on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $43.25.

Bandwidth Price Performance

The business’s 50 day moving average price is $37.37 and its 200 day moving average price is $22.56. The stock has a market capitalization of $2.31 billion, a P/E ratio of -189.33 and a beta of 2.93. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94.

Bandwidth (NASDAQ:BAND) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.38 EPS for the quarter, topping analysts’ consensus estimates 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 firm 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. Sell-side analysts forecast that Bandwidth Inc. will post 0.55 EPS for the current year.

Insider Transactions at Bandwidth

In related news, CFO Daryl E. Raiford sold 4,228 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $64.15, for a total transaction of $271,226.20. Following the completion of the sale, the chief financial officer directly owned 42,919 shares in the company, valued at approximately $2,753,253.85. The trade was a 8.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Kade Ross sold 1,588 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $58.85, for a total transaction of $93,453.80. Following the sale, the insider owned 47,996 shares of the company’s stock, valued at $2,824,564.60. This trade represents a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 131,181 shares of company stock valued at $5,596,190. Company insiders own 5.26% of the company’s stock.

Institutional Trading of Bandwidth

Several large investors have recently added to or reduced their stakes in the business. Deutsche Bank AG grew its holdings in Bandwidth by 6.0% during the 4th quarter. Deutsche Bank AG now owns 18,343 shares of the company’s stock worth $283,000 after acquiring an additional 1,043 shares in the last quarter. Principal Financial Group Inc. grew its holdings in Bandwidth by 6.1% during the 3rd quarter. Principal Financial Group Inc. now owns 19,383 shares of the company’s stock worth $323,000 after acquiring an additional 1,114 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in Bandwidth by 2.1% during the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 53,681 shares of the company’s stock worth $895,000 after acquiring an additional 1,129 shares in the last quarter. Franklin Resources Inc. grew its holdings in Bandwidth by 3.6% during the 4th quarter. Franklin Resources Inc. now owns 58,141 shares of the company’s stock worth $898,000 after acquiring an additional 2,043 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its holdings in Bandwidth by 8.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 29,896 shares of the company’s stock worth $462,000 after acquiring an additional 2,250 shares in the last quarter. 68.53% of the stock is currently owned by institutional investors.

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.