UBS Group Cuts Ringcentral (NYSE:RNG) Price Target to $32.00

Key Points

• UBS Group has revised its price target for RingCentral (NYSE:RNG) from $33.00 to $32.00, maintaining a "neutral" rating, which suggests a potential upside of 8.80% from the current stock price.
• Other analysts have also adjusted their price targets, with Raymond James lowering their target from $40.00 to $35.00, and Wells Fargo reducing it from $30.00 to $22.00, reflecting a mixed sentiment in the market.
• Insider trading activity shows a decrease in ownership positions, with significant shares sold recently by top executives, indicating potential concerns about the company's performance.

Ringcentral (NYSE:RNG - Free Report) had its price target reduced by UBS Group from $33.00 to $32.00 in a report published on Wednesday,Benzinga reports. UBS Group currently has a neutral rating on the software maker's stock.

RNG has been the subject of a number of other reports. Mizuho lifted their price target on Ringcentral from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Monday, May 12th. KeyCorp assumed coverage on shares of Ringcentral in a research note on Friday, June 6th. They issued a "sector weight" rating on the stock. Piper Sandler increased their price objective on Ringcentral from $25.00 to $28.00 and gave the stock a "neutral" rating in a report on Friday, May 9th. Wells Fargo & Company lowered their price target on Ringcentral from $30.00 to $22.00 and set an "underweight" rating on the stock in a report on Tuesday, April 22nd. Finally, Raymond James Financial dropped their price target on shares of Ringcentral from $40.00 to $35.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. One analyst has rated the stock with a sell rating, nine have given a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, Ringcentral has an average rating of "Hold" and a consensus target price of $30.62.

Ringcentral Price Performance

RNG stock traded down $0.36 during midday trading on Wednesday, reaching $28.76. 2,181,524 shares of the company's stock traded hands, compared to its average volume of 1,865,546. The business has a 50-day moving average price of $27.27 and a two-hundred day moving average price of $27.59. Ringcentral has a fifty-two week low of $20.58 and a fifty-two week high of $42.19. The company has a market capitalization of $2.59 billion, a P/E ratio of -205.41, a PEG ratio of 1.47 and a beta of 1.28.

Ringcentral (NYSE:RNG - Get Free Report) last announced 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 business had revenue of $620.40 million for the quarter, compared to the consensus estimate of $617.90 million. During the same period last year, the business posted $0.91 EPS. The company's revenue was up 4.6% on a year-over-year basis. As a group, research analysts forecast that Ringcentral will post 1.29 earnings per share for the current fiscal year.

Insider Activity at Ringcentral

In related news, SVP John H. Marlow sold 29,173 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $26.56, for a total transaction of $774,834.88. Following the completion of the sale, the senior vice president directly owned 352,448 shares of the company's stock, valued at $9,361,018.88. The trade was a 7.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Vladimir Shmunis sold 94,956 shares of the firm's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $26.56, for a total transaction of $2,522,031.36. Following the completion of the transaction, the chief executive officer directly owned 607,719 shares in the company, valued at approximately $16,141,016.64. The trade was a 13.51% 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. Insiders own 6.97% of the company's stock.

Hedge Funds Weigh In On Ringcentral

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RNG. Contour Asset Management LLC bought a new stake in shares of Ringcentral in the 1st quarter valued at $45,650,000. Jacobs Levy Equity Management Inc. grew its position in Ringcentral by 354.8% in the first quarter. Jacobs Levy Equity Management Inc. now owns 870,666 shares of the software maker's stock valued at $21,558,000 after purchasing an additional 679,211 shares in the last quarter. Capital World Investors increased its position in shares of Ringcentral by 5.9% in the fourth quarter. Capital World Investors now owns 10,663,441 shares of the software maker's stock valued at $373,327,000 after acquiring an additional 591,398 shares during the last quarter. First Trust Advisors LP raised its holdings in Ringcentral by 35.6% during the fourth quarter. First Trust Advisors LP now owns 2,009,286 shares of the software maker's stock worth $70,345,000 after acquiring an additional 527,901 shares in the last quarter. Finally, Ameriprise Financial Inc. boosted its holdings in shares of Ringcentral by 7.9% in the 1st quarter. Ameriprise Financial Inc. now owns 7,026,565 shares of the software maker's stock valued at $173,987,000 after buying an additional 512,834 shares during the last quarter. Institutional investors 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.