Ringcentral (NYSE:RNG) Given New $29.00 Price Target at Jefferies Financial Group

Key Points

• Jefferies Financial Group has reduced its price target for RingCentral from $30.00 to $29.00, indicating a potential downside of 1.99% from the stock's previous close.
• Analysts show mixed opinions on RingCentral, with one sell rating, nine hold ratings, five buy ratings, and one strong buy rating, amid varying price targets from other firms.
• RingCentral reported better-than-expected quarterly earnings, with an EPS of $1.06 surpassing the consensus estimate of $1.02, and revenue of $620.40 million for the quarter.

Ringcentral (NYSE:RNG - Get Free Report) had its price objective lowered by investment analysts at Jefferies Financial Group from $30.00 to $29.00 in a report issued on Wednesday,Benzinga reports. The firm presently has a "hold" rating on the software maker's stock. Jefferies Financial Group's price target would suggest a potential upside of 0.83% from the company's current price.

A number of other research analysts have also recently weighed in on RNG. Piper Sandler boosted their target price on shares of Ringcentral from $25.00 to $28.00 and gave the company a "neutral" rating in a research note on Friday, May 9th. Wedbush decreased their target price on shares of Ringcentral from $38.00 to $30.00 and set a "neutral" rating on the stock in a report on Friday, May 9th. Needham & Company LLC initiated coverage on shares of Ringcentral in a report on Friday, May 9th. They issued a "buy" rating and a $36.00 price target on the stock. Mizuho increased their target price on shares of Ringcentral from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Monday, May 12th. Finally, UBS Group reduced their target price on shares of Ringcentral from $33.00 to $32.00 and set a "neutral" rating on the stock in a report on Wednesday. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Ringcentral has a consensus rating of "Hold" and an average target price of $30.62.

Ringcentral Stock Performance

Shares of NYSE:RNG traded down $0.36 during mid-day trading on Wednesday, reaching $28.76. 2,181,524 shares of the company's stock were exchanged, compared to its average volume of 1,865,546. The firm has a market capitalization of $2.59 billion, a price-to-earnings ratio of -205.41, a PEG ratio of 1.47 and a beta of 1.28. Ringcentral has a twelve month low of $20.58 and a twelve month high of $42.19. The business's fifty day moving average price is $27.27 and its 200-day moving average price is $27.59.

Ringcentral (NYSE:RNG - Get Free Report) last posted its earnings results on Tuesday, August 5th. The software maker reported $1.06 EPS for the quarter, topping the consensus estimate of $1.02 by $0.04. Ringcentral had a negative net margin of 0.50% and a negative return on equity of 19.63%. The company had revenue of $620.40 million during the quarter, compared to the consensus estimate of $617.90 million. During the same period in the previous year, the firm posted $0.91 earnings per share. The firm's revenue for the quarter was up 4.6% on a year-over-year basis. Analysts predict that Ringcentral will post 1.29 EPS for the current fiscal year.

Insider Activity at Ringcentral

In related news, CEO Vladimir Shmunis sold 94,956 shares of Ringcentral stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $26.56, for a total transaction of $2,522,031.36. Following the completion of the transaction, the chief executive officer directly owned 607,719 shares of the company's stock, valued at $16,141,016.64. This trade represents a 13.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO Kira Makagon sold 21,185 shares of Ringcentral stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $27.69, for a total transaction of $586,612.65. Following the completion of the transaction, the chief operating officer directly owned 413,131 shares of the company's stock, valued at $11,439,597.39. This trade represents a 4.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 244,647 shares of company stock worth $6,531,804 over the last 90 days. 6.97% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ringcentral

A number of hedge funds have recently modified their holdings of RNG. Allspring Global Investments Holdings LLC boosted its position in shares of Ringcentral by 13.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 12,966 shares of the software maker's stock worth $321,000 after acquiring an additional 1,586 shares during the last quarter. Cambridge Investment Research Advisors Inc. increased its stake in Ringcentral by 116.9% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 44,524 shares of the software maker's stock worth $1,102,000 after buying an additional 23,997 shares during the period. Northern Trust Corp increased its stake in Ringcentral by 2.3% in the 4th quarter. Northern Trust Corp now owns 529,746 shares of the software maker's stock worth $18,546,000 after buying an additional 11,911 shares during the period. Wealth Enhancement Advisory Services LLC bought a new position in Ringcentral during the 4th quarter worth about $545,000. Finally, Robeco Institutional Asset Management B.V. grew its holdings in Ringcentral by 57.2% during the 1st quarter. Robeco Institutional Asset Management B.V. now owns 9,924 shares of the software maker's stock worth $246,000 after acquiring an additional 3,611 shares in the last quarter. 98.61% of the stock is currently owned by institutional investors.

About Ringcentral

RingCentral, Inc, together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company's products include RingCentral Message Video Phone that provides a unified experience for communication and collaboration across multiple modes, including HD voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions with integrated RingCentral MVP; and RingCX, an AI-powered contact center that a native delivers omnichannel experience.