In a recent report, Zacks Research has revised its earnings estimates for Bandwidth Inc. (NASDAQ:BAND), predicting a significant decline for the fiscal year 2025. The analysts now project an earnings per share (EPS) of ($0.06), a sharp decrease from their previous forecast of $0.29. This adjustment follows a trend of lowered expectations, as the consensus estimate for Bandwidth’s full-year earnings currently stands at $0.22 per share.
Updated Earnings Projections
In addition to the FY2025 estimate, Zacks Research has also outlined projections for future earnings. For the first quarter of fiscal year 2026, the estimated EPS is ($0.04), while for FY2026, analysts expect earnings to reach $0.25 per share. The forecasts continue into FY2027, anticipating an EPS of $0.42 and $0.04 for Q1 2027.
The revised estimates from Zacks Research come amid various assessments by other financial analysts. Wedbush maintained an “outperform” rating for Bandwidth in their report on September 17, 2023. Conversely, Wall Street Zen downgraded Bandwidth from a “buy” to a “hold” rating on December 14, 2023. Meanwhile, Robert W. Baird set a target price of $16.00 on the stock as of October 31, 2023, and Weiss Ratings issued a “sell (d-)” rating on October 8, 2023.
Currently, five analysts have given Bandwidth a “buy” rating, one has rated it a “hold,” and two have assigned a “sell” rating. According to data from MarketBeat, the stock carries an average target price of $21.00, reflecting a consensus rating of “hold.”
Market Performance and Investor Insights
On December 18, 2023, Bandwidth shares opened at $15.10, marking a 0.4% increase. The company’s financial indicators show 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, Bandwidth’s stock has fluctuated between a low of $11.33 and a high of $19.88. With a market capitalization of $460.85 million, the company currently exhibits a price-to-earnings (P/E) ratio of -38.72 and a beta of 2.11.
Institutional investors have made notable adjustments to their holdings in Bandwidth. For example, Vanguard Group Inc. increased its stake by 0.9% in the first quarter, owning 1,785,698 shares valued at approximately $23.39 million. Similarly, Invesco Ltd. raised its stake by 4.5%, now holding 53,835 shares valued at $705,000. Other institutional investors, including Nuveen LLC and Algert Global LLC, have also bolstered their positions in the company.
Currently, institutional investors hold approximately 68.53% of Bandwidth’s stock, indicating significant confidence from these larger entities.
Insider Activity
Recent insider trading has also drawn attention. On December 1, 2023, Rebecca Bottorff, an insider, sold 5,973 shares at an average price of $14.06, totaling around $83,980. Following this transaction, Bottorff’s holdings decreased by 10.07%. Additionally, Daryl E. Raiford, the Chief Financial Officer, sold 21,515 shares for approximately $302,500, which represents a 17.92% decrease in his position.
In the past ninety days, insiders have sold a total of 63,463 shares of Bandwidth stock, valued at approximately $895,210. Currently, insiders own around 6.20% of the company’s stock.
About Bandwidth
Founded in 1999 in Raleigh, North Carolina, Bandwidth Inc. operates a cloud-based communications platform that offers APIs for voice, messaging, and emergency services. The company enables enterprises and developers to integrate features such as programmable voice calls and text messaging into their applications, aiming to streamline critical communications. Originally focused on voice-over-IP technology, Bandwidth has expanded into a comprehensive communications API provider, catering to various industries, including healthcare and financial services.
As Bandwidth continues to navigate the complexities of the market, the adjustments in earnings projections and the responses from analysts and investors will be crucial in determining the company’s future direction.
