Zacks Research Has Pessimistic View of Bandwidth Q4 Earnings

Bandwidth Inc. (NASDAQ:BAND) – Stock analysts at Zacks Research lowered their Q4 2026 earnings per share estimates for shares of Bandwidth in a report released on Tuesday, January 13th. Zacks Research analyst Team now anticipates that the company will earn $0.18 per share for the quarter, down from their previous forecast of $0.19. The consensus estimate for Bandwidth’s current full-year earnings is $0.22 per share. Zacks Research also issued estimates for Bandwidth’s Q4 2027 earnings at $0.12 EPS.

Several other equities analysts have also weighed in on BAND. Wedbush reaffirmed an “outperform” rating on shares of Bandwidth in a research report on Wednesday, September 17th. Robert W. Baird set a $16.00 price target on shares of Bandwidth in a research note on Friday, October 31st. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Bandwidth in a research note on Wednesday, October 8th. Finally, Wall Street Zen downgraded shares of Bandwidth from a “buy” rating to a “hold” rating in a research report on Sunday, December 14th. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $21.00.

Bandwidth Stock Down 2.5%

Shares of Bandwidth stock opened at $13.92 on Wednesday. The firm has a market cap of $424.84 million, a price-to-earnings ratio of -35.69 and a beta of 2.10. The stock has a 50-day simple moving average of $14.62 and a 200-day simple moving average of $15.24. Bandwidth has a 52-week low of $11.33 and a 52-week high of $19.88. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.39 and a quick ratio of 1.39.

Insiders Place Their Bets

In related news, CEO David A. Morken sold 12,584 shares of Bandwidth stock in a transaction on Monday, December 1st. The shares were sold at an average price of $14.06, for a total value of $176,931.04. Following the transaction, the chief executive officer owned 29,494 shares in the company, valued at $414,685.64. This trade represents a 29.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Devesh Agarwal sold 4,202 shares of the business’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $14.06, for a total transaction of $59,080.12. Following the transaction, the chief operating officer directly owned 77,482 shares of the company’s stock, valued at approximately $1,089,396.92. This represents a 5.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 63,463 shares of company stock valued at $895,210 in the last three months. Company insiders own 6.20% of the company’s stock.

Institutional Investors Weigh In On Bandwidth

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of Bandwidth by 3.5% during the 3rd quarter. Vanguard Group Inc. now owns 1,988,533 shares of the company’s stock worth $33,149,000 after purchasing an additional 67,428 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Bandwidth by 2.1% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,464,976 shares of the company’s stock valued at $24,423,000 after buying an additional 30,248 shares during the last quarter. Portolan Capital Management LLC increased its position in Bandwidth by 115.8% in the 3rd quarter. Portolan Capital Management LLC now owns 745,802 shares of the company’s stock worth $12,433,000 after buying an additional 400,231 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its holdings in shares of Bandwidth by 11.3% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 680,945 shares of the company’s stock worth $10,827,000 after buying an additional 69,065 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of Bandwidth by 8.9% during the second quarter. Geode Capital Management LLC now owns 648,763 shares of the company’s stock worth $10,318,000 after buying an additional 52,762 shares during the last quarter. 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.