Ringcentral (NYSE:RNG) Upgraded by Oppenheimer to Outperform Rating

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.com reports. Oppenheimer currently has $35.00 target price on the software maker's stock.

A number of other equities research analysts have also recently issued reports on the stock. Piper Sandler upped their target price on shares of Ringcentral from $25.00 to $28.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Wells Fargo & Company dropped their target price on shares of Ringcentral from $30.00 to $22.00 and set an "underweight" rating on the stock in a report on Tuesday, April 22nd. Mizuho upped their price objective on Ringcentral from $25.00 to $27.00 and gave the company a "neutral" rating in a research note on Monday, May 12th. Morgan Stanley dropped their price objective on Ringcentral from $40.00 to $29.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 16th. Finally, Wedbush dropped their price target on Ringcentral from $38.00 to $30.00 and set a "neutral" rating on the stock in a research note on Friday, May 9th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $30.62.

Ringcentral Price Performance

Shares of NYSE RNG traded down $0.36 during midday trading on Wednesday, reaching $28.76. 2,181,524 shares of the stock were exchanged, compared to its average volume of 1,821,533. The business has a 50-day simple moving average of $27.27 and a two-hundred day simple moving average of $27.69. The company has a market capitalization of $2.59 billion, a price-to-earnings ratio of -205.41, a P/E/G ratio of 1.49 and a beta of 1.28. Ringcentral has a 12 month low of $20.58 and a 12 month high of $42.19.

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

Insider Activity at Ringcentral

In related news, SVP John H. Marlow sold 19,442 shares of the company's stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $26.43, for a total value of $513,852.06. Following the transaction, the senior vice president directly owned 333,006 shares in the company, valued at approximately $8,801,348.58. This represents a 5.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 transaction of $217,728.00. Following the completion of the transaction, the chief accounting officer directly owned 114,497 shares in the company, valued at $3,205,916. The trade was a 6.36% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 244,647 shares of company stock worth $6,531,804 in the last 90 days. 6.97% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ringcentral

Several institutional investors and hedge funds have recently made changes to their positions in the business. Parallel Advisors LLC grew its holdings in Ringcentral by 256.9% in the 2nd quarter. Parallel Advisors LLC now owns 1,481 shares of the software maker's stock worth $42,000 after acquiring an additional 1,066 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC bought a new stake in shares of Ringcentral in the fourth quarter worth about $49,000. New Age Alpha Advisors LLC bought a new stake in shares of Ringcentral in the first quarter worth about $49,000. Ameritas Advisory Services LLC bought a new stake in shares of Ringcentral in the second quarter worth about $49,000. Finally, PNC Financial Services Group Inc. grew its stake 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 purchasing an additional 615 shares during the last quarter. Institutional investors own 98.61% of the company's stock.

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.