Bandwidth (NASDAQ:BAND) Trading Down 10.7% – Time to Sell?

Bandwidth Inc. (NASDAQ:BAND) shares were down 10.7% on Tuesday . The stock traded as low as $52.08 and last traded at $51.0620. Approximately 607,223 shares were traded during trading, a decline of 27% from the average session volume of 837,110 shares. The stock had previously closed at $57.18.

Trending Headlines about Bandwidth

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Bandwidth reported second-quarter revenue of approximately $220 million, up 22% year over year and ahead of the $217 million consensus estimate. Non-GAAP EPS of $0.37 also exceeded expectations of $0.36. Bandwidth Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Adjusted EBITDA increased 27% to $28 million, producing a record 18% margin. Management cited sustained demand, accelerating business fundamentals, Voice AI adoption and more than $1 million in strategic customer wins. Bandwidth Q2 Earnings Top Estimates on Strong AI-Driven Demand
• Positive Sentiment: Bandwidth raised its 2026 revenue outlook to $900 million-$910 million and adjusted EBITDA outlook to $123 million-$125 million. Third-quarter guidance of $231 million-$235 million in revenue and $0.45-$0.49 EPS also exceeds analyst expectations. Bandwidth Raises 2026 Revenue and EBITDA Outlook
• Neutral Sentiment: Management is positioning AI-enabled communications and larger enterprise contracts as important growth drivers, but investors will look for evidence that these opportunities translate into durable cash-flow and profit expansion. Bandwidth Q2 Earnings Call Highlights AI Shift
• Negative Sentiment: The market reaction was negative because quarterly non-GAAP EPS declined from the prior year, while some reports characterized the full-year EPS outlook as reduced despite higher revenue and EBITDA guidance. The mixed profitability message disappointed investors and overshadowed the headline revenue beat. Why Bandwidth Stock Is Nosediving

Analyst Ratings Changes

Several equities research analysts have recently commented on BAND shares. 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. Zacks Research downgraded Bandwidth from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 3rd. B. Riley Financial boosted their price objective on Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Needham & Company LLC increased their price objective on Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a report on Friday, July 17th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $61.75.

Bandwidth Trading Up 6.0%

The firm has a market capitalization of $1.25 billion, a PE ratio of -103.32 and a beta of 2.92. The firm’s fifty day moving average is $62.18 and its two-hundred day moving average is $35.50. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94.

Bandwidth (NASDAQ:BAND) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.36 by $0.01. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. The firm had revenue of $219.90 million during the quarter, compared to analyst estimates of $217.04 million. The business’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. On average, equities analysts predict that Bandwidth Inc. will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Kade Ross sold 20,000 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $51.56, for a total transaction of $1,031,200.00. Following the completion of the sale, the insider directly owned 43,894 shares of the company’s stock, valued at approximately $2,263,174.64. This trade represents a 31.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Devesh Agarwal sold 15,000 shares of Bandwidth stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total value of $858,600.00. Following the sale, the chief operating officer owned 61,414 shares in the company, valued at $3,515,337.36. This trade represents a 19.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 117,269 shares of company stock valued at $6,876,623 over the last quarter. Corporate insiders own 5.26% of the company’s stock.

Institutional Investors Weigh In On Bandwidth

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in Bandwidth by 3.5% during the third quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company’s stock valued at $33,149,000 after buying an additional 67,428 shares during the period. Dimensional Fund Advisors LP raised its position in Bandwidth by 6.3% in the first quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company’s stock worth $27,647,000 after acquiring an additional 91,812 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in 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 acquiring an additional 516,117 shares during the last quarter. State Street Corp boosted its stake in 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 acquiring an additional 16,654 shares during the last quarter. Finally, Renaissance Technologies LLC grew its position 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 acquiring an additional 26,081 shares during the period. 68.53% of the stock is currently 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.