Peeling Back The Layers: Exploring 8x8 Through Analyst Insights

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on 8x8 EGHT in the last three months.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $3.4, a high estimate of $4.00, and a low estimate of $2.00. Experiencing a 20.93% decline, the current average is now lower than the previous average price target of $4.30.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive 8x8. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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 8x8. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of 8x8 compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of 8x8's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of 8x8's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on 8x8 analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Unveiling the Story Behind 8x8

8x8 Inc provides contact-center-as-a-service and unified-communications-as-a-service software applications to approximately 2.5 million users. The company's unified platform enables omnichannel communication to assist employees in communicating across voice, video, text, chat, and contact centers. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of its integrated technology platform.. Geographically, it derives a majority of revenue from the United States.

8x8: 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.

Decline in Revenue: Over the 3 months period, 8x8 faced challenges, resulting in a decline of approximately -2.8% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: 8x8's net margin excels beyond industry benchmarks, reaching -5.78%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): 8x8's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -9.96%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): 8x8's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.36% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: 8x8's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.57, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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