Beyond The Numbers: 4 Analysts Discuss Bandwidth Stock


Bandwidth BAND underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 2 1 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 1 2 0 0 0

Analysts have recently evaluated Bandwidth and provided 12-month price targets. The average target is $26.5, accompanied by a high estimate of $38.00 and a low estimate of $21.00. Witnessing a positive shift, the current average has risen by 13.98% from the previous average price target of $23.25.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Bandwidth's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
William Power Baird Raises Neutral $25.00 $21.00
Michael Walkley Canaccord Genuity Raises Buy $38.00 $36.00
Ryan McKeveny Barclays Raises Overweight $22.00 $20.00
Thomas Blakey Keybanc Raises Overweight $21.00 $16.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Bandwidth. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Bandwidth compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Bandwidth's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Bandwidth's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Bandwidth analyst ratings.

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Discovering Bandwidth: A Closer Look

Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.

Bandwidth: A Financial Overview

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Bandwidth's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.36% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -6.61%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Bandwidth's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.79%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.01%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Bandwidth's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.17.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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