Ringcentral (NYSE:RNG) Shares Gap Up After Earnings Beat

Key Points

• RingCentral's stock opened at $29.65 after a strong earnings report, significantly up from its previous close of $23.62, and last traded at $30.13.
• The company reported earnings per share (EPS) of $1.06, surpassing analysts' expectations of $1.02, with a revenue of $620.40 million for the quarter.
• Analysts have mixed ratings on RingCentral, with one sell rating, eight hold ratings, five buy ratings, and one strong buy, resulting in a consensus target price of $31.92.

Ringcentral, Inc. (NYSE:RNG - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $23.62, but opened at $29.65. Ringcentral shares last traded at $30.13, with a volume of 1,396,406 shares.

The software maker reported $1.06 earnings per share (EPS) for the quarter, topping 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 quarter last year, the company posted $0.91 earnings per share. The business's revenue was up 4.6% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Piper Sandler raised their price target on Ringcentral from $25.00 to $28.00 and gave the stock a "neutral" rating in a report on Friday, May 9th. UBS Group lowered their price target on Ringcentral from $33.00 to $32.00 and set a "neutral" rating on the stock in a report on Wednesday. Oppenheimer raised Ringcentral from a "market perform" rating to an "outperform" rating and set a $35.00 price target on the stock in a report on Wednesday. Morgan Stanley lowered their price target on Ringcentral from $40.00 to $29.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 16th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $32.00 price objective on shares of Ringcentral in a report on Monday, May 19th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $30.62.

Insider Buying and Selling

In other news, CEO Vladimir Shmunis sold 54,899 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $26.44, for a total transaction of $1,451,529.56. Following the sale, the chief executive officer owned 552,820 shares of the company's stock, valued at $14,616,560.80. The trade was a 9.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Kira Makagon sold 21,185 shares of the business's stock in a transaction that occurred on Friday, June 27th. The stock was sold at an average price of $27.69, for a total value of $586,612.65. Following the sale, the chief operating officer directly owned 413,131 shares in the company, valued at $11,439,597.39. This trade represents a 4.88% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 244,647 shares of company stock worth $6,531,804 in the last three months. Company insiders own 6.97% of the company's stock.

Institutional Investors Weigh In On Ringcentral

Several institutional investors have recently modified their holdings of RNG. LPL Financial LLC boosted its stake in shares of Ringcentral by 19.7% during the 4th quarter. LPL Financial LLC now owns 68,429 shares of the software maker's stock worth $2,396,000 after acquiring an additional 11,270 shares in the last quarter. Alliancebernstein L.P. raised its position in shares of Ringcentral by 128.2% during the 4th quarter. Alliancebernstein L.P. now owns 45,376 shares of the software maker's stock worth $1,589,000 after purchasing an additional 25,495 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Ringcentral by 4.6% during the 4th quarter. Geode Capital Management LLC now owns 1,349,667 shares of the software maker's stock worth $47,267,000 after purchasing an additional 58,814 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of Ringcentral by 40.1% during the 4th quarter. Russell Investments Group Ltd. now owns 234,256 shares of the software maker's stock worth $8,227,000 after purchasing an additional 67,007 shares during the last quarter. Finally, Federated Hermes Inc. raised its position in shares of Ringcentral by 4.1% during the 4th quarter. Federated Hermes Inc. now owns 24,739 shares of the software maker's stock worth $866,000 after purchasing an additional 985 shares during the last quarter. Hedge funds and other institutional investors own 98.61% of the company's stock.

Ringcentral Stock Performance

The stock has a market capitalization of $2.59 billion, a price-to-earnings ratio of -205.41, a P/E/G ratio of 1.47 and a beta of 1.28. The company has a 50-day moving average of $27.27 and a 200-day moving average of $27.64.

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.