Bandwidth (NASDAQ:BAND) Trading Down 8.8% – Here’s Why

Bandwidth Inc. (NASDAQ:BAND) fell 8.8% during trading on Monday . The stock traded as low as $51.56 and last traded at $51.8410. Approximately 471,737 shares traded hands during trading, a decline of 46% from the average session volume of 871,348 shares. The stock had previously closed at $56.87.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Weiss Ratings downgraded Bandwidth from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, August 27th. Citizens Jmp raised their price objective on Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research note on Monday, July 20th. Zacks Research downgraded shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a report on Friday, July 3rd. Piper Sandler raised their price objective on Bandwidth from $38.00 to $52.00 and gave the company a “neutral” rating in a research note on Wednesday, August 19th. Finally, B. Riley Financial upped their price target on shares of Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $59.80.

Bandwidth Trading Down 8.2%

The firm’s fifty day moving average is $54.63 and its 200-day moving average is $43.33. The firm has a market cap of $1.68 billion, a price-to-earnings ratio of -179.29 and a beta of 3.03. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.04 and a quick ratio of 2.04.

Bandwidth (NASDAQ:BAND) last issued its earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.01. The business had revenue of $219.90 million during the quarter, compared to the consensus estimate of $217.62 million. Bandwidth had a return on equity of 1.85% and a net margin of 0.27%.Bandwidth’s revenue 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. Equities analysts anticipate that Bandwidth Inc. will post 0.65 earnings per share for the current year.

Insider Buying and Selling at Bandwidth

In other news, CEO David A. Morken sold 5,128 shares of the business’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 $252,041.20. Following the completion of the sale, the chief executive officer directly owned 6,702 shares of the company’s stock, valued at $329,403.30. The trade was a 43.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Daryl E. Raiford sold 4,673 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $49.15, for a total value of $229,677.95. Following the completion of the sale, the chief financial officer directly owned 35,832 shares of the company’s stock, valued at approximately $1,761,142.80. This trade represents a 11.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 23,550 shares of company stock worth $1,154,782 in the last quarter. Company insiders own 5.26% of the company’s stock.

Hedge Funds Weigh In On Bandwidth

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Rhumbline Advisers raised its stake 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 stake in Bandwidth during the second quarter valued at $128,000. Arrowstreet Capital Limited Partnership raised its stake in Bandwidth by 26.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company’s stock valued at $5,933,000 after purchasing an additional 78,360 shares in the last quarter. Invesco Ltd. raised its position in shares of Bandwidth by 4.7% during the 2nd quarter. Invesco Ltd. now owns 56,367 shares of the company’s stock valued at $896,000 after buying an additional 2,532 shares in the last quarter. Finally, Jump Financial LLC purchased a new position in shares of Bandwidth in the 2nd quarter worth about $221,000. 68.53% of the stock is owned by hedge funds and other institutional investors.

Bandwidth Company Profile

Bandwidth Inc is a cloud communications company that provides application programming interfaces (APIs) and communications services for businesses, software developers and service providers. Its platform enables organizations to integrate voice calling, text messaging and other communications capabilities into applications, websites and business workflows.

The company’s offerings include voice and messaging APIs, toll-free and local telephone numbers, emergency communications and 911 access, authentication and related communications tools.