Bandwidth (NASDAQ:BAND) Stock Rating Upgraded by Zacks Research

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

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

Bandwidth Trading Up 2.7%

Shares of Bandwidth stock opened at $49.89 on Thursday. Bandwidth has a 12-month low of $12.50 and a 12-month high of $50.00. The stock has a market capitalization of $1.57 billion, a P/E ratio of -131.29 and a beta of 2.72. The company has a 50-day simple moving average of $20.13 and a 200 day simple moving average of $16.49. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.38 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.06. The firm had revenue of $208.78 million for the quarter, compared to analyst estimates 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. Research analysts expect that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Daryl E. Raiford sold 17,026 shares of Bandwidth stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $15.47, for a total value of $263,392.22. Following the completion of the sale, the chief financial officer directly owned 52,745 shares of the company’s stock, valued at approximately $815,965.15. This trade represents a 24.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Rebecca Bottorff sold 9,425 shares of the business’s 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 of the company’s stock, valued at approximately $2,289,235.50. The trade was a 15.72% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 52,551 shares of company stock valued at $1,250,804. 5.26% of the stock is currently owned by corporate insiders.

Institutional Trading of Bandwidth

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BAND. Dimensional Fund Advisors LP raised its holdings in Bandwidth by 6.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,551,508 shares of the company’s stock worth $27,647,000 after purchasing an additional 91,812 shares during the last quarter. Bastion Asset Management Inc. bought a new position in shares of Bandwidth in the 1st quarter valued at about $6,592,000. IMC Chicago LLC acquired a new stake in shares of Bandwidth during the 1st quarter worth approximately $218,000. Principal Financial Group Inc. grew its position in shares of Bandwidth by 50.5% during the 1st quarter. Principal Financial Group Inc. now owns 41,626 shares of the company’s stock worth $742,000 after buying an additional 13,959 shares during the period. Finally, Hsbc Holdings PLC raised its stake in shares of Bandwidth by 51.5% during the first quarter. Hsbc Holdings PLC now owns 92,804 shares of the company’s stock worth $1,707,000 after buying an additional 31,565 shares during the last quarter. 68.53% of the stock is currently owned by institutional investors and hedge funds.

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.