Analysts at Zacks Research have revised their earnings estimates for Bandwidth Inc. (NASDAQ:BAND), projecting a significant decline in the company’s earnings per share (EPS) for the fiscal year 2025. In a report released on December 17, 2023, Zacks analysts forecast that Bandwidth will post an EPS of **($0.06)**, a substantial drop from their previous estimate of **$0.29**. The consensus estimate for Bandwidth’s current full-year earnings stands at **$0.22** per share.
In addition to the downward revision for FY2025, Zacks has also provided estimates for upcoming quarters. The anticipated earnings for Q1 2026 are **($0.04)** EPS, while FY2026 is projected to reach **$0.25** EPS. Looking further ahead, the forecast for Q1 2027 is **$0.04** EPS, with full-year earnings for FY2027 expected to be **$0.42** EPS.
Analyst Ratings and Market Response
Bandwidth has recently been the subject of multiple research reports from various firms. On September 17, 2023, Wedbush reaffirmed an “outperform” rating for the company. Conversely, Wall Street Zen downgraded Bandwidth from a “buy” rating to a “hold” on December 14, 2023. Robert W. Baird has set a target price of **$16.00** for the stock, while Weiss Ratings issued a “sell (d-)” rating on October 8, 2023.
Currently, five analysts have rated Bandwidth stock as a “buy,” while one has given it a “hold” rating, and two have assigned a “sell” rating. According to data from MarketBeat, the stock has a consensus rating of “hold” and an average target price of **$21.00**.
Shares of Bandwidth opened at **$15.10** on Monday, reflecting a rise of **0.4%**. The company maintains a current ratio of **1.39**, a quick ratio of **1.39**, and a debt-to-equity ratio of **0.63**. Over the past year, the stock has fluctuated, hitting a low of **$11.33** and a high of **$19.88**. Bandwidth has a market capitalization of **$460.85 million** and a price-to-earnings (P/E) ratio of **-38.72**.
Institutional Investments and Insider Activity
Recent movements among institutional investors indicate shifting sentiments towards Bandwidth. Vanguard Group Inc. increased its holdings by **0.9%** during the first quarter, now owning **1,785,698** shares valued at approximately **$23.39 million** after acquiring an additional **16,671** shares. Invesco Ltd. also boosted its stake by **4.5%**, owning **53,835** shares valued at **$705,000**.
Nuveen LLC entered a new position in Bandwidth worth about **$7.92 million** during the same period. Algert Global LLC expanded its stake by an impressive **124.2%**, acquiring **40,980** shares worth **$537,000**. HSBC Holdings PLC increased its holdings by **8.5%**, now owning **54,296** shares valued at **$713,000**. Currently, institutional investors hold **68.53%** of Bandwidth’s stock.
In insider trading news, Rebecca Bottorff sold **5,973** shares on December 1, 2023, at an average price of **$14.06**, totalling **$83,980.38**. Following this transaction, Bottorff’s holdings decreased to **53,352** shares, valued at **$750,129.12**. Similarly, CFO Daryl E. Raiford sold **21,515** shares on the same day, also at **$14.06**, amounting to **$302,500.90**. After the sale, Raiford owned **98,535** shares valued at approximately **$1.39 million**.
In total, insiders have sold **63,463** shares of Bandwidth stock in the last ninety days, valued at **$895,210**. Currently, insiders hold **6.20%** of the company’s stock.
About Bandwidth
Bandwidth Inc. operates a cloud-based communications platform, offering voice, messaging, and emergency services APIs designed for enterprises and developers. Founded in 1999 in Raleigh, North Carolina, by co-founders **David Morken** and **Henry Kaestner**, Bandwidth initially focused on voice-over-IP infrastructure before transitioning into a comprehensive communications API provider. The company aims to streamline complex communication needs and enhance reliability across various sectors, including healthcare, financial services, on-demand mobility, and customer engagement.
