Ringcentral (NYSE:RNG) Trading Down 5.9% - What's Next?

Key Points

• RingCentral's shares experienced a significant decline of 5.9%, trading as low as $27.23, with a notable drop in trading volume compared to its average session.
• Analysts have mixed ratings for RingCentral, with target price adjustments ranging from a high of $35.00 to a low of $22.00, and the overall consensus rating is "Hold" with a price target of $30.62.
• In its latest earnings report, RingCentral reported earnings of $1.06 per share, exceeding expectations, while its revenue showed a year-over-year increase of 4.6% to $620.40 million.

Ringcentral, Inc. (NYSE:RNG - Get Free Report) shares fell 5.9% on Monday . The stock traded as low as $27.23 and last traded at $27.07. 1,321,270 shares were traded during mid-day trading, a decline of 8% from the average session volume of 1,438,166 shares. The stock had previously closed at $28.75.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on RNG. Jefferies Financial Group reduced their target price on shares of Ringcentral from $30.00 to $29.00 and set a "hold" rating for the company in a research note on Wednesday, August 6th. Piper Sandler boosted their price objective on shares of Ringcentral from $25.00 to $28.00 and gave the company a "neutral" rating in a research note on Friday, May 9th. Raymond James Financial reduced their price objective on shares of Ringcentral from $40.00 to $35.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. Wells Fargo & Company reduced their price objective on shares of Ringcentral from $30.00 to $22.00 and set an "underweight" rating for the company in a research note on Tuesday, April 22nd. Finally, KeyCorp initiated coverage on shares of Ringcentral in a research note 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 stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $30.62.

Ringcentral Stock Down 5.8%

The firm has a market capitalization of $2.44 billion, a P/E ratio of -193.41, a price-to-earnings-growth ratio of 1.47 and a beta of 1.28. The firm's 50-day simple moving average is $27.27 and its 200-day simple moving average is $27.59.

Ringcentral (NYSE:RNG - Get Free Report) last announced its earnings results 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. Ringcentral had a negative net margin of 0.50% and a negative return on equity of 19.63%. The business had revenue of $620.40 million during the quarter, compared to analyst estimates of $617.90 million. During the same period in the previous year, the business posted $0.91 earnings per share. Ringcentral's revenue for the quarter was up 4.6% on a year-over-year basis. As a group, analysts expect that Ringcentral, Inc. will post 1.29 EPS for the current fiscal year.

Insider Transactions at Ringcentral

In other news, CAO Tarun Arora sold 7,776 shares of the business's stock in a transaction that occurred on Friday, June 27th. The shares were 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 in the company, valued at approximately $3,205,916. The trade was a 6.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP John H. Marlow sold 19,442 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $26.43, for a total transaction of $513,852.06. Following the completion of the sale, the senior vice president owned 333,006 shares of the company's stock, valued at approximately $8,801,348.58. The trade was a 5.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 244,647 shares of company stock worth $6,531,804. Corporate insiders own 6.97% of the company's stock.

Institutional Investors Weigh In On Ringcentral

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Kayne Anderson Rudnick Investment Management LLC bought a new stake in Ringcentral during the 4th quarter valued at $49,000. Parallel Advisors LLC raised its holdings in Ringcentral by 256.9% during the 2nd quarter. Parallel Advisors LLC now owns 1,481 shares of the software maker's stock valued at $42,000 after buying an additional 1,066 shares during the last quarter. Ameritas Advisory Services LLC bought a new stake in Ringcentral during the 2nd quarter valued at $49,000. New Age Alpha Advisors LLC bought a new stake in Ringcentral during the 1st quarter valued at $49,000. Finally, PNC Financial Services Group Inc. raised its holdings in Ringcentral by 26.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 2,925 shares of the software maker's stock valued at $72,000 after buying an additional 615 shares during the last quarter. 98.61% of the stock is currently 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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