Drilling Down Into 8×8, Inc. (EGHT)

8×8, Inc. (EGHT) is an interesting player in the Technology space, with a focus on Diversified Communication Services. The stock has been active on the tape, currently trading at $17.75, up from yesterday’s close by 5.65%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

8×8, Inc. (EGHT) currently trades with a market capitalization of $1.59 Billion. That value represents a market adjusting for revenues that have been growing by 18.69 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $16.77 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0 on a per share basis this quarter. Perhaps, that suggests something about why 9.25% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, 8×8, Inc. recorded a 52-week high of $18.50. It is now trading 0.75% off that level. The stock is trading $15.45 its 50-day moving average by -2.3%. The stock carved out a 52-week low down at $10.30.

In recent action, 8×8, Inc. (EGHT) has made a move of +16.01% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.62, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.26% with $89.20 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of EGHT.

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