Bandwidth (NASDAQ:BAND) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Bandwidth (NASDAQ:BAND) from a hold rating to a buy rating in a research note published on Saturday,Wall Street Zen reports.

A number of other research firms have also weighed in on BAND. Weiss Ratings upgraded Bandwidth from a “sell (d+)” rating to a “hold (c)” rating in a report on Friday, October 9th. Citizens Jmp boosted their target price on shares of Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Citigroup reissued a “market outperform” rating on shares of Bandwidth in a report on Monday, July 20th. Bank of America initiated coverage on shares of Bandwidth in a research note on Wednesday, September 16th. They issued a “neutral” rating and a $60.00 price objective on the stock. Finally, Morgan Stanley began coverage on shares of Bandwidth in a report on Friday. They set an “equal weight” rating and a $56.00 target price for the company. Four analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $59.29.

Bandwidth Trading Down 12.6%

Shares of BAND stock opened at $43.34 on Friday. The company has a market cap of $1.39 billion, a price-to-earnings ratio of -149.45, a PEG ratio of 3.78 and a beta of 3.01. Bandwidth has a 1 year low of $12.50 and a 1 year high of $79.08. The firm has a fifty day moving average price of $52.53 and a 200-day moving average price of $50.08. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04.

Bandwidth (NASDAQ:BAND) last announced its quarterly earnings data 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 net margin of 0.27% and a return on equity of 1.85%. The business had revenue of $219.90 million during the quarter, compared to analyst estimates of $217.62 million. Bandwidth’s revenue for the quarter 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, equities analysts predict that Bandwidth will post 0.65 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Devesh Agarwal sold 4,869 shares of the company’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $239,311.35. Following the transaction, the chief operating officer owned 79,138 shares of the company’s stock, valued at $3,889,632.70. This represents a 5.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Richard Asbill sold 1,832 shares of the 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 $90,042.80. Following the transaction, the general counsel directly owned 7,550 shares of the company’s stock, valued at $371,082.50. The trade was a 19.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 23,550 shares of company stock worth $1,154,782. 5.26% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Tidal Investments LLC purchased a new position in Bandwidth during the 2nd quarter valued at about $1,451,000. Bastion Asset Management Inc. purchased a new position in Bandwidth during the first quarter worth $6,592,000. Walleye Capital LLC acquired a new position in shares of Bandwidth in the first quarter worth $1,069,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Bandwidth by 299.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock worth $12,268,000 after acquiring an additional 516,117 shares during the last quarter. Finally, Engineers Gate Manager LP purchased a new stake in shares of Bandwidth in the second quarter valued at $2,218,000. Hedge funds and other institutional investors own 68.53% of the company’s stock.

Bandwidth Company Profile

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.