8×8 Inc. (NASDAQ: EGHT) stock jumped 7.29% on Monday to $4.71 against a previous-day closing price of $4.39. With 1.12 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.04 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $4.7400 whereas the lowest price it dropped to was $4.3600. The 52-week range on EGHT shows that it touched its highest point at $16.28 and its lowest point at $2.87 during that stretch. It currently has a 1-year price target of $5.31. Beta for the stock currently stands at 1.31.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EGHT was up-trending over the past week, with a rise of 1.95%, but this was up by 4.67% over a month. Three-month performance surged to 45.37% while six-month performance fell -12.78%. The stock lost -69.83% in the past year, while it has gained 9.03% so far this year. A look at the trailing 12-month EPS for EGHT yields -1.09 with Next year EPS estimates of 0.38. For the next quarter, that number is 0.03. This implies an EPS growth rate of 1.20% for this year and 72.02% for next year.
Float and Shares Shorts:
At present, 116.01 million EGHT shares are outstanding with a float of 108.08 million shares on hand for trading. On Oct 13, 2022, short shares totaled 16.22 million, which was 14.85% higher than short shares on Sep 14, 2022. In addition to Mr. David D. Sipes as the firm’s CEO & Director, Mr. Samuel C. Wilson serves as its Exec. VP, CFO & Principal Accounting Officer.
Through their ownership of 99.04% of EGHT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.95% of EGHT, in contrast to 53.02% held by mutual funds. Shares owned by individuals account for 15.27%. As the largest shareholder in EGHT with 16.92% of the stake, The Vanguard Group, Inc. holds 18,899,764 shares worth 18,899,764. A second-largest stockholder of EGHT, BlackRock Fund Advisors, holds 17,816,024 shares, controlling over 15.95% of the firm’s shares. Sylebra Capital Ltd. is the third largest shareholder in EGHT, holding 14,242,379 shares or 12.75% stake. With a 7.40% stake in EGHT, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 8,262,479 shares are owned by the mutual fund manager. The Vanguard Explorer Fund, which owns about 4.85% of EGHT stock, is the second-largest Mutual Fund holder. It holds 5,418,118 shares valued at 23.41 million. Vanguard Total Stock Market Index holds 2.95% of the stake in EGHT, owning 3,289,503 shares worth 14.21 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EGHT since 14 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With EGHT analysts setting a high price target of $7.00 and a low target of $4.00, the average target price over the next 12 months is $5.38. Based on these targets, EGHT could surge 48.62% to reach the target high and fall by -15.07% to reach the target low. Reaching the average price target will result in a growth of 14.23% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. EGHT will report FY 2023 earnings on 05/25/2023. Analysts have provided yearly estimates in a range of $0.26 being high and $0.18 being low. For EGHT, this leads to a yearly average estimate of $0.21. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. 8×8 Inc. surprised analysts by $0.02 when it reported $0.05 EPS against a consensus estimate of $0.03. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $0.05 and the low estimate is $0.01. The average estimate for the next quarter is thus $0.02.
Summary of Insider Activity:
Insiders traded EGHT stock several times over the past three months with 2 Buys and 12 Sells. In these transactions, 287,356 shares were bought while 111,529 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 68 over the past year. The total number of shares bought during that period was 2,265,754 while 399,686 shares were sold.