RingCentral (NYSE:RNG) Stock Price Target Raised at Needham & Company LLC

Key Points

• Needham raised RingCentral’s price target from $85 to $110 and maintained a “buy” rating, implying approximately 39% upside from the reported $79.11 share price.
• Analyst sentiment remains mixed: five analysts rate RingCentral a “buy” and eight rate it a “hold,” resulting in an overall “hold” consensus and an average price target of $68.08.
• RingCentral exceeded quarterly expectations, reporting $1.33 in EPS versus the $1.28 consensus and revenue of $676.04 million versus estimates of $667.30 million; quarterly revenue increased 5.8% year over year.

RingCentral (NYSE:RNG - Get Free Report) had its price objective increased by research analysts at Needham & Company LLC from $85.00 to $110.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the software maker's stock. Needham & Company LLC's price objective would suggest a potential upside of 39.04% from the stock's current price.

RNG has been the subject of several other reports. Morgan Stanley raised their target price on RingCentral from $41.00 to $91.00 and gave the company an "equal weight" rating in a research report on Friday. Wells Fargo & Company lifted their target price on RingCentral from $43.00 to $65.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 25th. Rosenblatt Securities reissued a "buy" rating and issued a $50.00 price target on shares of RingCentral in a report on Friday, July 24th. Evercore set a $90.00 price target on shares of RingCentral in a research report on Friday. Finally, Mizuho raised their price objective on shares of RingCentral from $38.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, July 24th. Five investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $68.08.

RingCentral Stock Down 4.0%

• It's RingCentral NYSE: RNG You Want In Your 2021 Portfolio, Not Zoom NASDAQ: ZM

RNG stock opened at $79.11 on Friday. The firm has a market cap of $6.61 billion, a PE ratio of 63.29, a P/E/G ratio of 1.43 and a beta of 1.10. The business has a 50 day moving average of $73.63 and a 200-day moving average of $54.03. RingCentral has a 12-month low of $24.14 and a 12-month high of $83.71.

RingCentral (NYSE:RNG - Get Free Report) last issued its quarterly earnings results on Thursday, October 22nd. The software maker reported $1.33 EPS for the quarter, topping analysts' consensus estimates of $1.28 by $0.05. The business had revenue of $676.04 million for the quarter, compared to analyst estimates of $667.30 million. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%. RingCentral's quarterly revenue was up 5.8% compared to the same quarter last year. During the same period last year, the company posted $1.13 earnings per share. On average, research analysts expect that RingCentral will post 2.89 earnings per share for the current year.

Insider Buying and Selling at RingCentral

In other RingCentral news, CAO Tarun Arora sold 4,172 shares of the firm's stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $70.36, for a total value of $293,541.92. Following the completion of the sale, the chief accounting officer directly owned 65,692 shares of the company's stock, valued at $4,622,089.12. This trade represents a 5.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Agarwal sold 7,046 shares of the business's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $72.10, for a total value of $508,016.60. Following the completion of the sale, the chief financial officer owned 146,700 shares in the company, valued at approximately $10,577,070. The trade was a 4.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 84,625 shares of company stock valued at $6,024,953 in the last quarter. Insiders own 7.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RNG. Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new position in shares of RingCentral in the first quarter valued at approximately $697,000. Insight Wealth Strategies LLC purchased a new stake in RingCentral in the second quarter worth approximately $6,636,000. Maryland State Retirement & Pension System bought a new stake in RingCentral in the first quarter worth $584,000. Public Employees Retirement System of Ohio bought a new position in RingCentral during the 2nd quarter worth approximately $826,000. Finally, Janus Henderson Group PLC increased its stake in shares of RingCentral by 412.7% in the first quarter. Janus Henderson Group PLC now owns 177,966 shares of the software maker's stock worth $6,620,000 after buying an additional 143,254 shares during the period. Institutional investors own 98.61% of the company's stock.

RingCentral Company Profile

RingCentral, Inc is a provider of cloud-based business communications and collaboration solutions. Its platform enables organizations to manage business phone services, team messaging, video meetings, contact center operations and other communications through internet-based applications rather than traditional on-premises systems.

The company's offerings include RingEX, a unified communications platform that combines voice, messaging and video; RingCentral Video for online meetings and collaboration; and RingCX, a cloud contact center solution.

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