Ringcentral (NYSE:RNG) Rating Increased to Hold at Wells Fargo & Company

Key Points

• Wells Fargo & Company upgraded RingCentral's rating to "hold," suggesting a cautious outlook on the stock.
• RingCentral reported $620.40 million in revenue for the last quarter, surpassing estimates and achieving an EPS of $1.06, which is an improvement from the previous year's results.
• Despite mixed ratings from analysts, with four "buy" and ten "hold" ratings, the average price target for RingCentral's stock is $31.38.

Ringcentral (NYSE:RNG - Get Free Report) was upgraded by stock analysts at Wells Fargo & Company to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently weighed in on the company. KeyCorp began coverage on Ringcentral in a research note on Friday, June 6th. They set a "sector weight" rating for the company. UBS Group decreased their price target on shares of Ringcentral from $33.00 to $32.00 and set a "neutral" rating for the company in a research report on Wednesday, August 6th. Wall Street Zen upgraded shares of Ringcentral from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 5th. Oppenheimer upgraded shares of Ringcentral from a "market perform" rating to an "outperform" rating and set a $35.00 price objective for the company in a research note on Wednesday, August 6th. Finally, Jefferies Financial Group decreased their target price on shares of Ringcentral from $30.00 to $29.00 and set a "hold" rating for the company in a research report on Wednesday, August 6th. Four analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, Ringcentral has an average rating of "Hold" and an average price target of $31.38.

Ringcentral Stock Performance

NYSE:RNG opened at $28.17 on Tuesday. The firm has a 50-day simple moving average of $29.52 and a 200-day simple moving average of $27.38. Ringcentral has a one year low of $20.58 and a one year high of $42.19. The firm has a market cap of $2.55 billion, a P/E ratio of -201.18, a P/E/G ratio of 1.30 and a beta of 1.32.

Ringcentral (NYSE:RNG - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The software maker reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.04. The company had revenue of $620.40 million for the quarter, compared to analyst estimates of $617.90 million. Ringcentral had a negative net margin of 0.50% and a negative return on equity of 19.63%. Ringcentral's revenue was up 4.6% compared to the same quarter last year. During the same period last year, the company posted $0.91 earnings per share. Ringcentral has set its Q3 2025 guidance at 1.060-1.080 EPS. FY 2025 guidance at 4.200-4.320 EPS. On average, research analysts predict that Ringcentral will post 1.29 EPS for the current fiscal year.

Insider Activity

In related news, CEO Vladimir Shmunis sold 27,018 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $30.54, for a total value of $825,129.72. Following the completion of the transaction, the chief executive officer owned 407,529 shares in the company, valued at $12,445,935.66. This trade represents a 6.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Tarun Arora sold 1,037 shares of the business's stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $31.09, for a total value of $32,240.33. Following the sale, the chief accounting officer owned 110,626 shares in the company, valued at approximately $3,439,362.34. The trade was a 0.93% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 77,430 shares of company stock valued at $2,291,052 over the last ninety days. 6.97% of the stock is currently owned by insiders.

Institutional Trading of Ringcentral

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Parallel Advisors LLC lifted its position in Ringcentral by 256.9% during the second quarter. Parallel Advisors LLC now owns 1,481 shares of the software maker's stock valued at $42,000 after purchasing an additional 1,066 shares during the period. New Age Alpha Advisors LLC purchased a new stake in shares of Ringcentral in the first quarter worth about $49,000. Ameritas Advisory Services LLC acquired a new stake in Ringcentral during the second quarter worth about $49,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Ringcentral by 103.0% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,823 shares of the software maker's stock worth $52,000 after acquiring an additional 925 shares during the period. Finally, PNC Financial Services Group Inc. raised its position in Ringcentral by 26.6% during the first quarter. PNC Financial Services Group Inc. now owns 2,925 shares of the software maker's stock valued at $72,000 after acquiring an additional 615 shares in the last quarter. Institutional investors and hedge funds own 98.61% of the company's stock.

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.

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