Bandwidth (NASDAQ:BAND) Trading Down 8.4% – Should You Sell?

Bandwidth Inc. (NASDAQ:BAND)’s share price was down 8.4% during trading on Wednesday . The stock traded as low as $64.83 and last traded at $64.4710. Approximately 469,678 shares were traded during mid-day trading, a decline of 43% from the average daily volume of 830,708 shares. The stock had previously closed at $70.36.

Analyst Ratings Changes

Several equities analysts have recently weighed in on BAND shares. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a report on Friday, July 17th. Needham & Company LLC upped their price target on shares of Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Citizens Jmp upped their price target on shares of Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research note on Monday. Wall Street Zen downgraded shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 28th. Finally, B. Riley Financial raised their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $61.75.

Bandwidth Price Performance

The firm has a market capitalization of $1.88 billion, a P/E ratio of -154.58 and a beta of 2.92. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.94 and a current ratio of 0.94. The firm has a 50-day moving average of $62.49 and a 200-day moving average of $34.45.

Bandwidth (NASDAQ:BAND) last posted its 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 positive return on equity of 1.47% and a negative net margin of 0.64%.The business 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. As a group, analysts predict that Bandwidth Inc. will post 0.55 EPS for the current year.

Insiders Place Their Bets

In other Bandwidth news, CEO David A. Morken sold 4,632 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $58.85, for a total transaction of $272,593.20. Following the transaction, the chief executive officer owned 7,198 shares in the company, valued at approximately $423,602.30. This represents a 39.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Rebecca Bottorff sold 9,425 shares of the company’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $45.30, for a total transaction of $426,952.50. Following the transaction, the insider owned 50,535 shares in the company, valued at $2,289,235.50. This represents a 15.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 127,269 shares of company stock worth $7,192,523 in the last quarter. Insiders own 5.26% of the company’s stock.

Institutional Investors Weigh In On Bandwidth

Several institutional investors and hedge funds have recently added to or reduced their stakes in BAND. Empowered Funds LLC grew its position in Bandwidth by 9.9% in the 1st quarter. Empowered Funds LLC now owns 154,432 shares of the company’s stock worth $2,752,000 after purchasing an additional 13,961 shares during the period. Quantinno Capital Management LP lifted its holdings in shares of Bandwidth by 248.2% during the 1st quarter. Quantinno Capital Management LP now owns 76,836 shares of the company’s stock valued at $1,369,000 after buying an additional 54,771 shares during the period. Renaissance Technologies LLC lifted its holdings in shares of Bandwidth by 4.2% during the 1st quarter. Renaissance Technologies LLC now owns 644,981 shares of the company’s stock valued at $11,494,000 after buying an additional 26,081 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in shares of Bandwidth by 299.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 688,430 shares of the company’s stock worth $12,268,000 after buying an additional 516,117 shares during the last quarter. Finally, Walleye Capital LLC purchased a new position in shares of Bandwidth in the 1st quarter worth $1,069,000. Hedge funds and other institutional investors own 68.53% of the company’s stock.

Bandwidth Company Profile

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.