Jefferies Financial Group Cuts Ringcentral (NYSE:RNG) Price Target to $29.00

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 target price cut by Jefferies Financial Group from $30.00 to $29.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a "hold" rating on the software maker's stock. Jefferies Financial Group's price target would suggest a potential downside of 1.99% from the stock's previous close.

Several other research analysts have also weighed in on the stock. Piper Sandler upped their price objective 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. KeyCorp started coverage on shares of Ringcentral in a report on Friday, June 6th. They issued a "sector weight" rating for the company. Wedbush dropped their price objective on shares of Ringcentral from $38.00 to $30.00 and set a "neutral" rating for the company in a research note on Friday, May 9th. Raymond James Financial dropped their target price on shares of Ringcentral from $40.00 to $35.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Finally, Mizuho increased their price objective on shares of Ringcentral from $25.00 to $27.00 and gave the stock a "neutral" rating in a report on Monday, May 12th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $31.64.

Ringcentral Stock Performance

Shares of NYSE:RNG traded up $5.97 during midday trading on Wednesday, hitting $29.59. 4,429,058 shares of the company's stock traded hands, compared to its average volume of 1,407,235. The company has a market cap of $2.66 billion, a PE ratio of -67.24, a P/E/G ratio of 0.76 and a beta of 1.28. The firm's fifty day moving average price is $27.07 and its two-hundred day moving average price is $27.74. Ringcentral has a twelve month low of $20.58 and a twelve month high of $42.19.

Ringcentral (NYSE:RNG - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The software maker reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.04. The firm had revenue of $620.40 million for the quarter, compared to the consensus estimate of $617.90 million. Ringcentral had a negative net margin of 1.65% and a negative return on equity of 15.63%. The firm's quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.91 EPS. As a group, equities research analysts anticipate that Ringcentral will post 1.29 EPS for the current fiscal year.

Insider Activity

In related news, SVP John H. Marlow sold 19,442 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $26.43, for a total value of $513,852.06. Following the completion of the sale, the senior vice president owned 333,006 shares in the company, valued at $8,801,348.58. The trade was a 5.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Kira Makagon sold 21,185 shares of Ringcentral stock in a transaction that occurred on Friday, June 27th. The stock was sold at an average price of $27.69, for a total value of $586,612.65. Following the completion of the transaction, the chief operating officer directly owned 413,131 shares in the company, 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. Over the last quarter, insiders sold 244,647 shares of company stock worth $6,531,804. 6.97% of the stock is owned by insiders.

Institutional Investors Weigh In On Ringcentral

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Rafferty Asset Management LLC increased its holdings in shares of Ringcentral by 1.7% during the fourth quarter. Rafferty Asset Management LLC now owns 19,685 shares of the software maker's stock valued at $689,000 after acquiring an additional 325 shares in the last quarter. Gagnon Securities LLC lifted its position in shares of Ringcentral by 5.9% during the 1st quarter. Gagnon Securities LLC now owns 8,155 shares of the software maker's stock valued at $202,000 after buying an additional 452 shares in the last quarter. Amalgamated Bank lifted its position in shares of Ringcentral by 8.7% during the 2nd quarter. Amalgamated Bank now owns 6,094 shares of the software maker's stock valued at $173,000 after buying an additional 489 shares in the last quarter. Private Advisor Group LLC raised its stake in Ringcentral by 6.2% during the 1st quarter. Private Advisor Group LLC now owns 9,448 shares of the software maker's stock valued at $234,000 after purchasing an additional 552 shares during the period. Finally, PNC Financial Services Group Inc. raised its stake in Ringcentral by 26.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 2,925 shares of the software maker's stock valued at $72,000 after purchasing an additional 615 shares during the period. 98.61% of the stock is owned by hedge funds and other institutional investors.

Ringcentral Company Profile

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.

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