Zacks Research Upgrades Bandwidth (NASDAQ:BAND) to “Strong-Buy”

Bandwidth (NASDAQ:BAND) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research note on Monday, April 20th. Wall Street Zen raised shares of Bandwidth from a “hold” rating to a “strong-buy” rating in a research report on Saturday, May 2nd. Needham & Company LLC boosted their price target on shares of Bandwidth from $20.00 to $45.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. B. Riley Financial boosted their price target on shares of Bandwidth from $20.00 to $27.00 and gave the stock a “buy” rating in a research report on Friday, April 17th. Finally, Citigroup reissued an “outperform” rating on shares of Bandwidth in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Bandwidth has a consensus rating of “Moderate Buy” and a consensus target price of $31.00.

Bandwidth Trading Up 2.7%

BAND opened at $49.89 on Thursday. The stock has a market capitalization of $1.57 billion, a P/E ratio of -131.29 and a beta of 2.72. Bandwidth has a 12 month low of $12.50 and a 12 month high of $50.00. The firm’s fifty day simple moving average is $20.13 and its 200 day simple moving average is $16.49. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.37.

Bandwidth (NASDAQ:BAND) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.32 by $0.06. The business had revenue of $208.78 million for the quarter, compared to analysts’ expectations of $201.58 million. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. 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, research analysts anticipate that Bandwidth will post 0.55 EPS for the current fiscal year.

Insider Activity at Bandwidth

In related news, insider Rebecca Bottorff sold 9,425 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $45.30, for a total value of $426,952.50. Following the sale, the insider owned 50,535 shares in the company, valued at approximately $2,289,235.50. This represents a 15.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Daryl E. Raiford sold 16,100 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $15.19, for a total value of $244,559.00. Following the completion of the sale, the chief financial officer owned 36,645 shares in the company, valued at approximately $556,637.55. This trade represents a 30.52% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 52,551 shares of company stock worth $1,250,804. Company insiders own 5.26% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of BAND. Rhumbline Advisers raised its holdings in Bandwidth by 15.0% in the 2nd quarter. Rhumbline Advisers now owns 40,927 shares of the company’s stock valued at $651,000 after acquiring an additional 5,324 shares during the period. Quantbot Technologies LP bought a new position in Bandwidth in the 2nd quarter valued at about $128,000. Arrowstreet Capital Limited Partnership raised its holdings in Bandwidth by 26.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company’s stock valued at $5,933,000 after acquiring an additional 78,360 shares during the period. Invesco Ltd. raised its holdings in Bandwidth by 4.7% in the 2nd quarter. Invesco Ltd. now owns 56,367 shares of the company’s stock valued at $896,000 after acquiring an additional 2,532 shares during the period. Finally, Jump Financial LLC bought a new position in Bandwidth in the 2nd quarter valued at about $221,000. 68.53% of the stock is 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.