Ringcentral (NYSE:RNG) Stock Rating Upgraded by Oppenheimer

Key Points

• Oppenheimer upgraded RingCentral from "market perform" to "outperform," with a target price of $35.00, indicating a potential upside of 48.31% from the previous close.
• RingCentral reported earnings of $1.06 per share for the last quarter, exceeding estimates, with revenue of $620.40 million, representing a 4.6% year-over-year increase.
• The stock currently has an average rating of "Hold" among analysts, with one sell rating, eight hold ratings, and five buy ratings.

Oppenheimer upgraded shares of Ringcentral (NYSE:RNG - Free Report) from a market perform rating to an outperform rating in a research report sent to investors on Wednesday morning, MarketBeat Ratings reports. Oppenheimer currently has $35.00 target price on the software maker's stock.

A number of other brokerages have also commented on RNG. Needham & Company LLC initiated coverage on shares of Ringcentral in a report on Friday, May 9th. They set a "buy" rating and a $36.00 price target on the stock. Wedbush reduced their price target on Ringcentral from $38.00 to $30.00 and set a "neutral" rating on the stock in a research report on Friday, May 9th. UBS Group decreased their price target on Ringcentral from $38.00 to $33.00 and set a "neutral" rating for the company in a research note on Friday, May 9th. Piper Sandler lifted their price objective on Ringcentral from $25.00 to $28.00 and gave the stock a "neutral" rating in a research note on Friday, May 9th. Finally, KeyCorp started coverage on shares of Ringcentral in a research report on Friday, June 6th. They set a "sector weight" rating for the company. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $30.62.

Ringcentral Price Performance

Shares of NYSE RNG traded down $0.36 during mid-day trading on Wednesday, hitting $28.76. 2,181,524 shares of the stock traded hands, compared to its average volume of 1,821,533. The company has a market cap of $2.59 billion, a PE ratio of -205.41, a price-to-earnings-growth 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 firm has a 50 day simple moving average of $27.27 and a two-hundred day simple moving average of $27.64.

Ringcentral (NYSE:RNG - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The software maker reported $1.06 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.04. Ringcentral had a negative return on equity of 19.09% and a negative net margin of 0.50%. The firm had revenue of $620.40 million for the quarter, compared to analyst estimates of $617.90 million. During the same period last year, the firm posted $0.91 earnings per share. The business's revenue for the quarter was up 4.6% on a year-over-year basis. On average, equities research analysts anticipate that Ringcentral will post 1.29 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CAO Tarun Arora sold 7,776 shares of the stock in a transaction on Friday, June 27th. The stock was sold at an average price of $28.00, for a total value of $217,728.00. Following the completion of the sale, the chief accounting officer directly owned 114,497 shares of the company's stock, valued at approximately $3,205,916. This represents a 6.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Kira Makagon sold 21,185 shares of the stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $27.69, for a total transaction of $586,612.65. Following the completion of the sale, the chief operating officer owned 413,131 shares of the company's stock, valued at approximately $11,439,597.39. This represents a 4.88% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 244,647 shares of company stock worth $6,531,804 over the last ninety days. Insiders own 6.97% of the company's stock.

Hedge Funds Weigh In On Ringcentral

Several institutional investors have recently modified their holdings of RNG. Parallel Advisors LLC raised its stake in Ringcentral by 256.9% in the 2nd quarter. Parallel Advisors LLC now owns 1,481 shares of the software maker's stock valued at $42,000 after acquiring an additional 1,066 shares during the period. Kayne Anderson Rudnick Investment Management LLC bought a new stake in Ringcentral during the fourth quarter worth about $49,000. New Age Alpha Advisors LLC bought a new position in Ringcentral during the first quarter valued at approximately $49,000. Ameritas Advisory Services LLC purchased a new position in Ringcentral in the 2nd quarter worth $49,000. Finally, PNC Financial Services Group Inc. increased its holdings in shares of Ringcentral by 26.6% in the first quarter. PNC Financial Services Group Inc. now owns 2,925 shares of the software maker's stock worth $72,000 after buying an additional 615 shares during the period. 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.