Wall Street Zen Downgrades RingCentral (NYSE:RNG) to Buy

Wall Street Zen cut shares of RingCentral (NYSE:RNG - Free Report) from a strong-buy rating to a buy rating in a research note published on Saturday morning.

A number of other brokerages have also recently issued reports on RNG. Raymond James reduced their price objective on shares of RingCentral from $40.00 to $35.00 and set an "outperform" rating on the stock in a research note on Friday, May 9th. Barclays cut their price target on RingCentral from $37.00 to $31.00 and set an "equal weight" rating on the stock in a research note on Friday, February 21st. Needham & Company LLC assumed coverage on RingCentral in a research note on Friday, May 9th. They set a "buy" rating and a $36.00 price objective for the company. Robert W. Baird dropped their price objective on RingCentral from $38.00 to $32.00 and set a "neutral" rating for the company in a report on Tuesday, February 25th. Finally, Mizuho increased their target price on RingCentral from $25.00 to $27.00 and gave the company a "neutral" rating in a research note on Monday, May 12th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $33.08.

RingCentral Price Performance

Shares of RNG stock traded up $0.18 on Friday, reaching $27.59. 907,376 shares of the stock were exchanged, compared to its average volume of 1,340,667. RingCentral has a one year low of $20.59 and a one year high of $42.19. The stock has a market cap of $2.48 billion, a PE ratio of -43.10, a P/E/G ratio of 1.27 and a beta of 1.27. The stock has a 50 day moving average price of $25.33 and a 200 day moving average price of $30.47.

RingCentral (NYSE:RNG - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The software maker reported $1.00 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.04. RingCentral had a negative return on equity of 12.34% and a negative net margin of 2.43%. The firm had revenue of $612.06 million during the quarter, compared to analysts' expectations of $610.53 million. During the same period in the previous year, the business posted $0.87 EPS. The company's quarterly revenue was up 4.8% compared to the same quarter last year. On average, research analysts expect that RingCentral will post 1.29 earnings per share for the current fiscal year.

Insider Activity at RingCentral

In other RingCentral news, CEO Vladimir Shmunis sold 94,956 shares of RingCentral stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $26.56, for a total value of $2,522,031.36. Following the transaction, the chief executive officer now owns 607,719 shares of the company's stock, valued at approximately $16,141,016.64. The trade was a 13.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP John H. Marlow sold 29,173 shares of the stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $26.56, for a total transaction of $774,834.88. Following the sale, the senior vice president now directly owns 352,448 shares of the company's stock, valued at $9,361,018.88. This represents a 7.64% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 215,686 shares of company stock worth $5,727,463. 6.97% of the stock is owned by company insiders.

Hedge Funds Weigh In On RingCentral

Hedge funds have recently made changes to their positions in the business. Contour Asset Management LLC bought a new position in RingCentral in the first quarter valued at $45,650,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of RingCentral by 414.3% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,445,245 shares of the software maker's stock worth $50,598,000 after buying an additional 1,164,241 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in shares of RingCentral by 354.8% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 870,666 shares of the software maker's stock valued at $21,558,000 after acquiring an additional 679,211 shares in the last quarter. Valley Wealth Managers Inc. bought a new position in shares of RingCentral in the 4th quarter valued at about $20,792,000. Finally, Capital World Investors increased its position in shares of RingCentral by 5.9% in the fourth quarter. Capital World Investors now owns 10,663,441 shares of the software maker's stock valued at $373,327,000 after acquiring an additional 591,398 shares during the last quarter. 98.61% of the stock is owned by 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.