8×8 Inc. (EGHT) shares are trading at lower $18.00 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $20.66.
To add more color to this target, the company’s high over the last year is $21.57 and the low is $10.70. Over the last 52 weeks, EGHT is down -10.58% while the S&P 500 is up 14.82%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, EGHT reported a profit of $72.64 million. 8×8 Inc. also saw revenues increase to $129.13 million. In addition, EGHT has free cash flow of -$33.4 million as of 09-2020. The company’s EBITDA came in at -$10.91 million which compares well with its peers.
EGHT booked profit margins of -36.20%, its Return on Equity (ROE) is -93.00%, and its Return on Assets is -25.30%. All told, it is clear that, EGHT needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EGHT has a short ratio of 15.25 and outstanding shares of 104.62M.
EGHT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.66 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.73. 8×8 Inc. EGHT also noted assets of $687.24 million at the end of the last quarter. Investors should also keep an eye on sector updates as EGHT has historically followed its peers on positive news.
All told, 8×8 Inc. EGHT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EGHT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
8×8 Inc. EGHT is now commanding a market cap of 1.88B and a float of 102.44M. EGHT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EGHT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in EGHT, either long or short, and we have not been compensated for this article.