Ringcentral (NYSE:RNG) Shares Down 5.8% - Should You Sell?

Key Points

• RingCentral's stock fell by 5.8% on Tuesday, trading as low as $29.65, with a significant drop in trading volume, down 86% from the average.
• Equity analysts have mixed ratings on RingCentral, with four analysts rating it as a "Buy" and nine as a "Hold," while the average price target is set at $30.62.
• Despite recent stock declines, RingCentral reported a positive earnings result last quarter, beating estimates with $1.06 EPS and significant revenue growth of 4.6% year-over-year.

Ringcentral, Inc. (NYSE:RNG - Get Free Report) fell 5.8% on Tuesday . The stock traded as low as $29.65 and last traded at $28.96. 213,216 shares traded hands during trading, a decline of 86% from the average session volume of 1,486,114 shares. The stock had previously closed at $30.75.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Wall Street Zen upgraded shares of Ringcentral from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 5th. Oppenheimer upgraded Ringcentral from a "market perform" rating to an "outperform" rating and set a $35.00 target price for the company in a research note on Wednesday, August 6th. UBS Group dropped their price objective on Ringcentral from $33.00 to $32.00 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Jefferies Financial Group decreased their target price on Ringcentral from $30.00 to $29.00 and set a "hold" rating for the company in a report on Wednesday, August 6th. Finally, KeyCorp started coverage on shares of Ringcentral in a research report on Friday, June 6th. They set a "sector weight" rating on the stock. Four investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $30.62.

Ringcentral Price Performance

The company has a market capitalization of $2.58 billion, a P/E ratio of -203.66, a price-to-earnings-growth ratio of 1.41 and a beta of 1.32. The company has a fifty day moving average price of $29.51 and a 200 day moving average price of $27.37.

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

Insider Activity

In other news, CFO Vaibhav Agarwal sold 2,443 shares of the company's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $30.70, for a total value of $75,000.10. Following the transaction, the chief financial officer directly owned 226,448 shares of the company's stock, valued at approximately $6,951,953.60. This represents a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Tarun Arora sold 1,037 shares of the business's stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $31.09, for a total value of $32,240.33. Following the completion of the sale, the chief accounting officer directly owned 110,626 shares of the company's stock, 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 sold 77,430 shares of company stock worth $2,291,052 over the last quarter. Corporate insiders own 6.97% of the company's stock.

Institutional Trading of Ringcentral

A number of hedge funds have recently bought and sold shares of RNG. Wealth Enhancement Advisory Services LLC acquired a new stake in Ringcentral during the fourth quarter valued at approximately $545,000. Wellington Management Group LLP bought a new stake in shares of Ringcentral in the 4th quarter worth about $15,630,000. GAMMA Investing LLC grew its holdings in shares of Ringcentral by 1,803.3% in the 1st quarter. GAMMA Investing LLC now owns 5,843 shares of the software maker's stock worth $145,000 after purchasing an additional 5,536 shares during the last quarter. Wedge Capital Management L L P NC grew its holdings in shares of Ringcentral by 19.1% in the 1st quarter. Wedge Capital Management L L P NC now owns 68,907 shares of the software maker's stock worth $1,706,000 after purchasing an additional 11,037 shares during the last quarter. Finally, SG Americas Securities LLC grew its holdings in shares of Ringcentral by 977.7% in the 1st quarter. SG Americas Securities LLC now owns 101,379 shares of the software maker's stock worth $2,510,000 after purchasing an additional 91,972 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.

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