Ringcentral (NYSE:RNG) Stock Price Down 5.9% - Here's What Happened

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)'s stock price traded down 5.9% on Monday . The stock traded as low as $27.23 and last traded at $27.07. 1,321,270 shares changed hands during trading, a decline of 8% from the average session volume of 1,438,166 shares. The stock had previously closed at $28.75.

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Needham & Company LLC assumed coverage on Ringcentral in a research report on Friday, May 9th. They set a "buy" rating and a $36.00 price target on the stock. Wedbush dropped their price target on Ringcentral from $38.00 to $30.00 and set a "neutral" rating on the stock in a research report on Friday, May 9th. UBS Group dropped their price target on Ringcentral from $33.00 to $32.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. Oppenheimer raised Ringcentral from a "market perform" rating to an "outperform" rating and set a $35.00 price target on the stock in a research report on Wednesday, August 6th. Finally, Wall Street Zen upgraded Ringcentral from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 5th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $30.62.

Ringcentral Stock Performance

The company has a market cap of $2.76 billion, a P/E ratio of -219.27, a P/E/G ratio of 1.40 and a beta of 1.28. The firm has a 50 day moving average price of $27.52 and a 200-day moving average price of $27.49.

Ringcentral (NYSE:RNG - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The software maker reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.04. The company had revenue of $620.40 million during the quarter, compared to the consensus estimate of $617.90 million. Ringcentral had a negative return on equity of 19.63% and a negative net margin of 0.50%. The firm's revenue was up 4.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.91 EPS. On average, sell-side analysts forecast that Ringcentral, Inc. will post 1.29 EPS for the current fiscal year.

Insider Activity at Ringcentral

In other news, SVP John H. Marlow sold 19,442 shares of the stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $26.43, for a total value of $513,852.06. Following the completion of the transaction, the senior vice president directly owned 333,006 shares of the company's stock, valued at approximately $8,801,348.58. This represents a 5.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Vladimir Shmunis sold 54,899 shares of the stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $26.44, for a total value of $1,451,529.56. Following the completion of the transaction, the chief executive officer directly owned 552,820 shares of the company's stock, valued at approximately $14,616,560.80. The trade was a 9.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 242,400 shares of company stock worth $6,468,955 in the last 90 days. Insiders own 6.97% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Parallel Advisors LLC boosted its position in shares of 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 purchasing an additional 1,066 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC acquired a new stake in shares of Ringcentral in the 4th quarter valued at about $49,000. New Age Alpha Advisors LLC acquired a new stake in shares of Ringcentral in the 1st quarter valued at about $49,000. Ameritas Advisory Services LLC acquired a new stake in shares of Ringcentral in the 2nd quarter valued at about $49,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Ringcentral by 103.0% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,823 shares of the software maker's stock valued at $52,000 after purchasing an additional 925 shares during the period. 98.61% of the stock is currently owned by institutional investors.

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.