Analysts at Zacks Research have revised their earnings per share (EPS) estimates for Bandwidth Inc., significantly lowering their forecast for the fiscal year 2025. In a report released on December 17, 2023, the firm now anticipates that Bandwidth will experience a loss of $0.06 per share, a notable decrease from their previous estimate of $0.29. This adjustment comes as the consensus expectation for Bandwidth’s current full-year earnings stands at $0.22 per share.
In addition to the FY2025 forecast, Zacks Research also provided projections for Bandwidth’s upcoming quarters. The anticipated earnings for the first quarter of 2026 are set at $0.04 EPS, with estimates for FY2026 and FY2027 pegged at $0.25 EPS and $0.42 EPS respectively.
Market Reactions and Analyst Ratings
The recent adjustments from Zacks Research follow a series of evaluations from various analysts regarding Bandwidth’s stock performance. On September 17, 2023, Wedbush reaffirmed an “outperform” rating. Conversely, Wall Street Zen downgraded Bandwidth from a “buy” to a “hold” on December 14, 2023. Additionally, Robert W. Baird placed a target price of $16.00 on the stock on October 31, 2023, while Weiss Ratings issued a “sell (d-)” rating on October 8, 2023. Currently, five analysts recommend buying the stock, one suggests holding, and two advise selling, resulting in an average target price of $21.00 according to MarketBeat.
Current Stock Performance and Institutional Investment
As of Monday, shares of Bandwidth opened at $15.10, reflecting a modest increase of 0.4%. The company maintains a current ratio of 1.39 and a debt-to-equity ratio of 0.63. Bandwidth has experienced a 12-month trading range, with a low of $11.33 and a high of $19.88. The company currently boasts a market capitalization of $460.85 million and a price-to-earnings (P/E) ratio of -38.72.
Recent activity among institutional investors indicates a cautious yet engaged approach. 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. Invesco Ltd. also increased its stake by 4.5%, acquiring an additional 2,301 shares. Other notable investors include Nuveen LLC, which purchased a new position worth around $7.92 million, and Algert Global LLC, which raised its stake by 124.2%.
Insider Transactions
In related news, insider transactions have seen significant activity recently. On December 1, 2023, insider Rebecca Bottorff sold 5,973 shares at an average price of $14.06, totaling approximately $83,980.38. After this sale, Bottorff holds 53,352 shares valued at about $750,129.12. Additionally, Chief Financial Officer Daryl E. Raiford sold 21,515 shares on the same day, generating roughly $302,500.90. Following this transaction, Raiford now owns 98,535 shares valued at approximately $1.39 million.
The past ninety days have seen insiders sell a total of 63,463 shares, amounting to around $895,210, contributing to the current insider ownership of 6.20% of the company’s stock.
About Bandwidth Inc.
Founded in 1999 in Raleigh, North Carolina, Bandwidth Inc. operates a cloud-based communications platform that provides voice, messaging, and emergency services APIs for enterprises and developers. The company has evolved from its initial focus on voice-over-IP infrastructure to become a comprehensive communications API provider. Bandwidth’s solutions are designed to enhance reliability and reduce complexity in mission-critical communications across various industries, including healthcare, financial services, and customer engagement.
With ongoing shifts in earnings forecasts and market evaluations, Bandwidth remains a company to watch as it navigates its path forward in the competitive communications sector.
