UBS Group Has Lowered Expectations for Ringcentral (NYSE:RNG) Stock Price

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 objective lowered by UBS Group from $33.00 to $32.00 in a research note released on Wednesday,Benzinga reports. The brokerage currently has a neutral rating on the software maker's stock.

A number of other research analysts also recently commented on RNG. Raymond James Financial dropped their price target on Ringcentral from $40.00 to $35.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. Wedbush reduced their price target on shares of Ringcentral from $38.00 to $30.00 and set a "neutral" rating on the stock in a research note on Friday, May 9th. KeyCorp started coverage on Ringcentral in a research note on Friday, June 6th. They set a "sector weight" rating on the stock. Wall Street Zen raised shares of Ringcentral from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 5th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $32.00 target price on shares of Ringcentral in a report on Monday, May 19th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $30.62.

Ringcentral Trading Down 2.2%

Shares of NYSE:RNG traded down $0.64 during midday trading on Wednesday, hitting $28.48. The company had a trading volume of 669,288 shares, compared to its average volume of 1,429,383. The firm has a fifty day simple moving average of $27.21 and a 200 day simple moving average of $27.72. The stock has a market cap of $2.56 billion, a price-to-earnings ratio of -203.65, a PEG ratio of 0.97 and a beta of 1.28. Ringcentral has a 12 month low of $20.58 and a 12 month high of $42.19.

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, topping the consensus estimate of $1.02 by $0.04. The firm had revenue of $620.40 million for the quarter, compared to the consensus estimate of $617.90 million. Ringcentral had a negative net margin of 0.50% and a negative return on equity of 19.09%. The business's quarterly revenue was up 4.6% on a year-over-year basis. During the same period last year, the company posted $0.91 EPS. Equities analysts forecast that Ringcentral will post 1.29 EPS for the current fiscal year.

Insider Activity

In other Ringcentral news, COO Kira Makagon sold 21,185 shares of the stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $27.69, for a total value of $586,612.65. Following the transaction, the chief operating officer owned 413,131 shares of the company's stock, valued at approximately $11,439,597.39. This represents a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP John H. Marlow sold 19,442 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $26.43, for a total transaction of $513,852.06. Following the sale, the senior vice president owned 333,006 shares of the company's stock, valued at $8,801,348.58. This trade represents a 5.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 244,647 shares of company stock worth $6,531,804. 6.97% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Parallel Advisors LLC increased its holdings in shares of Ringcentral by 256.9% during the second quarter. Parallel Advisors LLC now owns 1,481 shares of the software maker's stock valued at $42,000 after acquiring an additional 1,066 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC purchased a new position in shares of Ringcentral in the fourth quarter worth about $49,000. New Age Alpha Advisors LLC purchased a new stake in Ringcentral in the first quarter valued at approximately $49,000. Ameritas Advisory Services LLC purchased a new position in Ringcentral during the 2nd quarter worth approximately $49,000. Finally, PNC Financial Services Group Inc. boosted its holdings in shares of Ringcentral by 26.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,925 shares of the software maker's stock valued at $72,000 after acquiring an additional 615 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.