Bandwidth (NASDAQ:BAND) Shares Gap Down – Should You Sell?

Shares of Bandwidth Inc. (NASDAQ:BAND) gapped down before the market opened on Monday . The stock had previously closed at $65.34, but opened at $59.56. Bandwidth shares last traded at $58.1910, with a volume of 359,854 shares.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Zacks Research raised Bandwidth from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 7th. Wall Street Zen lowered Bandwidth from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 16th. Citigroup reaffirmed an “outperform” rating on shares of Bandwidth in a research report on Thursday, April 30th. B. Riley Financial lifted their target price on Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a research report on Friday, April 17th. Finally, Needham & Company LLC boosted their price target on Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $43.25.

Bandwidth Trading Down 14.2%

The stock has a market capitalization of $1.80 billion, a P/E ratio of -148.37 and a beta of 2.93. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.37. The company has a 50-day moving average price of $43.15 and a 200 day moving average price of $24.74.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.32 by $0.06. The firm had revenue of $208.78 million during the quarter, compared to analyst estimates of $201.58 million. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. On average, research analysts forecast that Bandwidth Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity at Bandwidth

In related news, COO Devesh Agarwal sold 15,000 shares of the company’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total transaction of $858,600.00. Following the transaction, the chief operating officer directly owned 61,414 shares of the company’s stock, valued at $3,515,337.36. This represents a 19.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of the business’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $72.03, for a total value of $2,104,284.42. Following the sale, the general counsel owned 3,000 shares in the company, valued at $216,090. The trade was a 90.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 127,269 shares of company stock worth $7,192,523 over the last ninety days. Corporate insiders own 5.26% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Bandwidth by 3.5% in the third quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company’s stock valued at $33,149,000 after purchasing an additional 67,428 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of Bandwidth by 6.3% in the first quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company’s stock valued at $27,647,000 after purchasing an additional 91,812 shares during the period. Portolan Capital Management LLC increased its holdings in shares of Bandwidth by 115.8% in the third quarter. Portolan Capital Management LLC now owns 745,802 shares of the company’s stock valued at $12,433,000 after purchasing an additional 400,231 shares during the period. Arrowstreet Capital Limited Partnership increased 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 valued at $12,268,000 after purchasing an additional 516,117 shares during the period. Finally, State Street Corp increased its holdings in shares of Bandwidth by 2.6% in the fourth quarter. State Street Corp now owns 649,426 shares of the company’s stock valued at $10,034,000 after purchasing an additional 16,654 shares during the period. 68.53% of the stock is owned by institutional investors and hedge funds.

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.