Ratings for 8x8 (NASDAQ:EGHT) were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 0 | 1 | 2 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 0 | 0 | 0 | 1 | 0 |
| 2M Ago | 2 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $2.7, along with a high estimate of $3.50 and a low estimate of $1.50. Experiencing a 21.97% decline, the current average is now lower than the previous average price target of $3.46.
Breaking Down Analyst Ratings: A Detailed Examination
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Turrin | Wells Fargo | Lowers | Underweight | $1.50 | $2.00 |
| Meta Marshall | Morgan Stanley | Lowers | Underweight | $2.00 | $3.00 |
| Ryan Koontz | Needham | Maintains | Buy | $3.50 | $3.50 |
| Ryan Koontz | Needham | Lowers | Buy | $3.50 | $5.00 |
| Meta Marshall | Morgan Stanley | Lowers | Equal-Weight | $3.00 | $3.80 |
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: Understanding forecasts, analysts offer estimates for 8x8's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of 8x8's market position. Stay informed and make well-informed decisions with our Ratings Table.
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About 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.
A Deep Dive into 8x8's Financials
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to 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 -2.77% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: 8x8's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -13.15%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -22.29%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): 8x8's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.98%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: 8x8's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.68, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Understanding the Relevance of Analyst Ratings
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.