Evercore ISI Maintains Hold Rating on 8X8 with $2.00 Target, Rosenblatt Securities Reiterates Buy

Evercore ISI analyst Peter Levine maintained a Hold rating on 8X8 with a price target of $2.00. The company's shares closed at $1.76. Levine has a 12.0% average return and a 50.96% success rate on recommended stocks. 8X8 has a one-year high of $3.52 and a one-year low of $1.51. Corporate insider sentiment is negative with 75 insiders selling shares, including Director Andrew Burton selling 6,644 shares for $12,291.40 in June 2025.

Shares of 8x8 Inc. (NYSE: EGHT) plummeted 10.6% in the afternoon session on July 2, 2025, following the company's fiscal first-quarter results. The business communications software company reported a GAAP net loss of $4.3 million, despite revenue narrowly beating analyst expectations. Key profit metrics, such as non-GAAP gross margins and cash flow from operations, declined, with gross margins tightening to 67.8% from 70.6% in the same period last year [1].

Management attributed the margin pressure to a higher mix of usage-based offerings, which carried lower profitability. Looking ahead, the company projected continued challenges and guided for lower gross margins for the remainder of the fiscal year, overshadowing the revenue figures and leading investors to focus on the deteriorating profitability [1].

Analysts have responded to the company's performance with mixed ratings. Evercore ISI analyst Peter Levine maintained a Hold rating on 8X8 with a price target of $2.00, citing profitability concerns, high leverage, and valuation issues [2]. Levine's 12.0% average return and 50.96% success rate on recommended stocks add weight to his analysis. However, other analysts, such as Rosenblatt Securities, have a more optimistic view, with a Buy rating and a price target of $2.70 [2].

8x8's shares closed at $1.76 on July 2, 2025, trading 49.7% below its 52-week high of $3.47. The company has seen significant volatility, with 40 moves greater than 5% over the last year. Corporate insider sentiment is negative, with 75 insiders selling shares, including Director Andrew Burton selling 6,644 shares for $12,291.40 in June 2025 [1].

Investors should closely monitor 8x8's upcoming earnings reports and analyst ratings for further insights into the company's financial health and growth prospects.

References:
[1] https://finance.yahoo.com/news/8x8-eght-stock-trades-down-171108061.html
[2] https://www.tipranks.com/stocks/eght/forecast