Bandwidth (NASDAQ:BAND) Shares Down 14.3% – Time to Sell?

Shares of Bandwidth Inc. (NASDAQ:BAND) dropped 14.3% on Thursday. The stock traded as low as $42.43 and last traded at $40.1410. 86,164 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 868,857 shares. The stock had previously closed at $46.82.

Analysts Set New Price Targets

A number of research firms have recently weighed in on BAND. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. Citigroup reaffirmed a “market outperform” rating on shares of Bandwidth in a research note on Monday, July 20th. Morgan Stanley initiated coverage on shares of Bandwidth in a report on Friday, October 16th. They set an “equal weight” rating and a $56.00 price target for the company. Piper Sandler upped their price target on shares of Bandwidth from $38.00 to $52.00 and gave the company a “neutral” rating in a report on Wednesday, August 19th. Finally, Weiss Ratings raised shares of Bandwidth from a “sell (d+)” rating to a “hold (c)” rating in a research report on Friday, October 9th. Four equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $59.29.

Bandwidth Trading Up 9.1%

The company has a market capitalization of $1.42 billion, a P/E ratio of -152.34, a P/E/G ratio of 3.61 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’s 50 day moving average is $51.64 and its 200-day moving average is $51.00.

Bandwidth (NASDAQ:BAND) last issued its quarterly earnings results 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 company had revenue of $219.90 million during the quarter, compared to analysts’ expectations 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 research analysts anticipate that Bandwidth Inc. will post 0.64 earnings per share for the current year.

Insiders Place Their Bets

In other Bandwidth news, General Counsel Richard Asbill sold 1,832 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $90,042.80. Following the completion of the transaction, the general counsel owned 7,550 shares of the company’s stock, valued at approximately $371,082.50. The trade was a 19.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Devesh Agarwal sold 4,869 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $49.15, for a total transaction of $239,311.35. Following the transaction, the chief operating officer owned 79,138 shares in the company, valued at $3,889,632.70. This represents a 5.80% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 25,050 shares of company stock valued at $1,228,342. 5.26% of the stock is owned by company insiders.

Institutional Trading of Bandwidth

A number of large investors have recently made changes to their positions in the stock. Sterling Capital Management LLC lifted its holdings in shares of Bandwidth by 850.0% during the 3rd quarter. Sterling Capital Management LLC now owns 988 shares of the company’s stock valued at $60,000 after buying an additional 884 shares during the period. TD Waterhouse Canada Inc. bought a new stake in shares of Bandwidth in the second quarter worth $70,000. State of Alaska Department of Revenue grew its holdings in shares of Bandwidth by 43.1% in the third quarter. State of Alaska Department of Revenue now owns 1,262 shares of the company’s stock worth $76,000 after acquiring an additional 380 shares during the period. Integrated Wealth Concepts LLC bought a new stake in shares of Bandwidth in the second quarter worth $94,000. Finally, Simplicity Wealth LLC bought a new stake in shares of Bandwidth in the third quarter worth $202,000. 68.53% of the stock is currently owned by institutional investors.

Bandwidth Company Profile

Bandwidth Inc (NASDAQ:BAND) is a cloud communications company that provides application programming interfaces (APIs) and related network services for integrating voice, messaging and emergency communications into software applications. Its platform is designed for businesses, communications providers and technology companies that need to build communications capabilities into customer-facing products and internal workflows.

The company’s offerings include programmable voice, text messaging and toll-free messaging services, as well as emergency calling capabilities through its E911 solution.