Bandwidth (NASDAQ:BAND) Shares Gap Up – Still a Buy?

Bandwidth Inc. (NASDAQ:BAND) gapped up prior to trading on Thursday . The stock had previously closed at $12.99, but opened at $15.24. Bandwidth shares last traded at $16.2040, with a volume of 590,182 shares.

Bandwidth News Roundup

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Management delivered record fourth-quarter adjusted EBITDA and free cash flow, signaling improving profitability and cash conversion that support valuation upside. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: The board authorized an $80 million share repurchase program, which reduces float and is typically viewed as shareholder-friendly — likely a direct contributor to the stock rally. PR Newswire: Buyback Announcement
• Neutral Sentiment: Reported Q4 EPS of $0.35 matched consensus, removing an earnings miss risk, while revenue of $207.67M was essentially flat versus estimates (slightly below consensus). That keeps the quarter neutral-to-mixed in investors’ minds. Zacks: Matches Q4 Estimates
• Neutral Sentiment: Analysts and coverage pieces are parsing key Q4 metrics and year-over-year trends to judge sustainability of margin improvement; detailed metric comparisons and management commentary will drive follow‑on analyst revisions. Zacks: How Key Metrics Compare
• Negative Sentiment: Q1 2026 revenue guidance of $200M–$203M came in below Street expectations (~$207.9M), and Q4 revenue slightly missed consensus — short-term topline softness is a downside risk to near-term multiple expansion. Company Press Release / Slide Deck
• Negative Sentiment: Reported EPS of $0.35 is below last year’s $0.37, indicating modest year-over-year earnings pressure despite margin improvement — a factor that could temper enthusiasm if growth slows. MarketBeat: Earnings & Call

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Bandwidth in a research report on Wednesday, January 21st. B. Riley Financial assumed coverage on Bandwidth in a report on Friday, January 23rd. They issued a “buy” rating and a $20.00 price objective on the stock. Robert W. Baird set a $16.00 price objective on Bandwidth in a research note on Friday, October 31st. Finally, Wall Street Zen cut Bandwidth from a “buy” rating to a “hold” rating in a report on Sunday, December 14th. Six equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $20.83.

Bandwidth Stock Performance

The company has a market cap of $472.75 million, a PE ratio of -40.03 and a beta of 2.15. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.39 and a current ratio of 1.39. The firm’s 50 day moving average is $14.15 and its 200-day moving average is $14.89.

Bandwidth (NASDAQ:BAND) last released its earnings results on Thursday, February 19th. The company reported $0.35 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.35. The business had revenue of $207.67 million for the quarter, compared to analyst estimates of $208.30 million. Bandwidth had a negative net margin of 1.54% and a positive return on equity of 1.17%. On average, research analysts anticipate that Bandwidth Inc. will post 0.22 earnings per share for the current fiscal year.

Insider Transactions at Bandwidth

In other news, CFO Daryl E. Raiford sold 6,719 shares of the firm’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $14.50, for a total transaction of $97,425.50. Following the completion of the sale, the chief financial officer owned 91,816 shares in the company, valued at $1,331,332. This trade represents a 6.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO David A. Morken sold 12,584 shares of Bandwidth stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $14.06, for a total transaction of $176,931.04. Following the sale, the chief executive officer directly owned 29,494 shares in the company, valued at approximately $414,685.64. The trade was a 29.91% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 63,463 shares of company stock valued at $895,210 in the last three months. 6.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Bandwidth

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its holdings in Bandwidth by 3.5% in the 3rd 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 last quarter. Dimensional Fund Advisors LP boosted its position in shares of Bandwidth by 2.1% during the third quarter. Dimensional Fund Advisors LP now owns 1,464,976 shares of the company’s stock worth $24,423,000 after buying an additional 30,248 shares during the period. Portolan Capital Management LLC grew its stake 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 buying an additional 400,231 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its stake in shares of Bandwidth by 11.3% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 680,945 shares of the company’s stock valued at $10,827,000 after buying an additional 69,065 shares in the last quarter. Finally, State Street Corp raised its holdings in shares of Bandwidth by 2.6% in the 4th quarter. State Street Corp now owns 649,426 shares of the company’s stock valued at $10,034,000 after buying an additional 16,654 shares during the period. 68.53% of the stock is currently 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.