Bandwidth Inc. (NASDAQ:BAND – Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $52.25, but opened at $38.31. Bandwidth shares last traded at $37.3160, with a volume of 1,052,527 shares changing hands.
Key Bandwidth News
Here are the key news stories impacting Bandwidth this week:
- Positive Sentiment: Quarterly results exceeded expectations: Bandwidth reported adjusted earnings of $0.37 per share, above the $0.36 consensus estimate, while revenue reached $219.9 million versus expectations of $217.0 million. Revenue increased 22.2% year over year. Bandwidth Announces Second Quarter 2026 Financial Results
- Positive Sentiment: Profitability improved: Adjusted EBITDA rose 27% to $28 million, producing a record 18% adjusted EBITDA margin. Management cited sustained demand, accelerating business fundamentals, voice AI adoption and strategic customer wins exceeding $1 million. Bandwidth Announces Second Quarter 2026 Financial Results
- Positive Sentiment: Outlook was raised above analyst forecasts: Third-quarter 2026 guidance calls for EPS of $0.45–$0.49 and revenue of $231 million–$235 million, compared with consensus estimates of $0.40 and $223.6 million. Full-year guidance was increased to EPS of $1.71–$1.79 and revenue of $900 million–$910 million, above consensus estimates of $1.55 and $891 million. Bandwidth earnings and guidance report
- Neutral Sentiment: The results reinforce Bandwidth’s growth strategy around enterprise cloud communications and voice AI, though investors may require continued execution to justify the company’s sharp valuation expansion over the past year. What to expect from Bandwidth’s Q2 earnings
- Negative Sentiment: Despite the earnings beat and stronger guidance, Bandwidth continues to report a negative net margin of 0.64%, and its valuation remains sensitive to any slowdown in growth or concerns about the pace of future improvements.
Analyst Upgrades and Downgrades
Several brokerages have issued reports on BAND. Citigroup restated a “market outperform” rating on shares of Bandwidth in a research report on Monday, July 20th. Citizens Jmp boosted their price objective on shares of Bandwidth from $70.00 to $86.00 and gave the stock a “market outperform” rating in a research note on Monday, July 20th. Wall Street Zen downgraded Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Zacks Research lowered Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Finally, B. Riley Financial lifted their target price on Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $61.75.
Bandwidth Trading Down 25.8%
The stock has a market cap of $1.24 billion, a P/E ratio of -100.80 and a beta of 2.92. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.94 and a current ratio of 0.94. The firm’s fifty day simple moving average is $62.60 and its 200-day simple moving average is $35.34.
Bandwidth (NASDAQ:BAND – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, topping 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 company had revenue of $219.90 million during the quarter, compared to analysts’ expectations of $217.04 million. Bandwidth’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. Equities research analysts expect that Bandwidth Inc. will post 0.55 EPS for the current fiscal year.
Insider Transactions at Bandwidth
In related news, insider Rebecca Bottorff sold 9,425 shares of the company’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $45.30, for a total transaction of $426,952.50. Following the sale, the insider owned 50,535 shares in the company, valued at $2,289,235.50. This represents a 15.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Devesh Agarwal sold 15,000 shares of the firm’s stock in a transaction that occurred 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 directly owned 61,414 shares of the company’s stock, valued at $3,515,337.36. This represents a 19.63% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 127,269 shares of company stock worth $7,192,523. Corporate insiders own 5.26% of the company’s stock.
Institutional Trading of Bandwidth
Hedge funds have recently modified their holdings of the stock. Deutsche Bank AG lifted its position in shares of Bandwidth by 6.0% during the 4th quarter. Deutsche Bank AG now owns 18,343 shares of the company’s stock valued at $283,000 after acquiring an additional 1,043 shares during the period. Mercer Global Advisors Inc. ADV boosted its stake in Bandwidth by 2.1% during the third quarter. Mercer Global Advisors Inc. ADV now owns 53,681 shares of the company’s stock worth $895,000 after acquiring an additional 1,129 shares in the last quarter. Franklin Resources Inc. grew its holdings in Bandwidth by 3.6% in the fourth quarter. Franklin Resources Inc. now owns 58,141 shares of the company’s stock worth $898,000 after purchasing an additional 2,043 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in Bandwidth by 8.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,896 shares of the company’s stock worth $462,000 after purchasing an additional 2,250 shares during the period. Finally, Tower Research Capital LLC TRC increased its stake in Bandwidth by 183.7% in the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock valued at $60,000 after purchasing an additional 2,445 shares in the last quarter. Institutional investors own 68.53% of the company’s stock.
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.
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