RingCentral (NYSE:RNG) Stock Price Down 4.5% After Insider Selling

RingCentral, Inc. (NYSE:RNG)’s share price traded down 4.5% during trading on Friday after an insider sold shares in the company. The company traded as low as $39.43 and last traded at $39.50. 296,067 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 1,231,686 shares. The stock had previously closed at $41.35.

Specifically, Director Ned D. Segal sold 2,914 shares of the business’s stock in a transaction on Thursday, December 12th. The shares were sold at an average price of $41.60, for a total value of $121,222.40. Following the completion of the sale, the director now directly owns 10,633 shares of the company’s stock, valued at $442,332.80. The trade was a 21.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP John H. Marlow sold 8,720 shares of RingCentral stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $42.05, for a total value of $366,676.00. Following the transaction, the senior vice president now directly owns 334,869 shares in the company, valued at approximately $14,081,241.45. This trade represents a 2.54 % decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Raymond James lowered their target price on RingCentral from $52.00 to $50.00 and set a “strong-buy” rating on the stock in a research note on Friday, November 8th. Needham & Company LLC reissued a “buy” rating and issued a $42.00 price target on shares of RingCentral in a report on Monday, November 11th. Rosenblatt Securities restated a “buy” rating and set a $45.00 target price on shares of RingCentral in a research report on Friday, November 8th. Wedbush upped their target price on shares of RingCentral from $36.00 to $41.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Finally, Mizuho restated a “neutral” rating and issued a $42.00 price target on shares of RingCentral in a report on Friday. Eight investment analysts have rated the stock with a hold rating, five have assigned a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $41.43.

RingCentral Stock Performance

The stock’s fifty day moving average is $36.07 and its two-hundred day moving average is $33.03. The firm has a market capitalization of $3.53 billion, a price-to-earnings ratio of -36.84, a price-to-earnings-growth ratio of 2.65 and a beta of 0.99.

RingCentral (NYSE:RNG) last posted its quarterly earnings data on Thursday, November 7th. The software maker reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.10. RingCentral had a negative net margin of 4.17% and a negative return on equity of 2.55%. The firm had revenue of $608.77 million for the quarter, compared to the consensus estimate of $601.91 million. Sell-side analysts anticipate that RingCentral, Inc. will post 0.84 earnings per share for the current year.

Hedge Funds Weigh In On RingCentral

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Sovereign Financial Group Inc. raised its holdings in shares of RingCentral by 6.9% during the third quarter. Sovereign Financial Group Inc. now owns 9,693 shares of the software maker’s stock valued at $307,000 after buying an additional 625 shares during the last quarter. Xponance Inc. increased its position in shares of RingCentral by 6.8% during the 2nd quarter. Xponance Inc. now owns 11,122 shares of the software maker’s stock valued at $314,000 after purchasing an additional 704 shares during the period. KBC Group NV boosted its stake in RingCentral by 38.9% during the third quarter. KBC Group NV now owns 2,659 shares of the software maker’s stock valued at $84,000 after buying an additional 744 shares in the last quarter. Private Advisor Group LLC raised its position in RingCentral by 13.6% in the third quarter. Private Advisor Group LLC now owns 8,119 shares of the software maker’s stock worth $257,000 after acquiring an additional 971 shares in the last quarter. Finally, Quarry LP grew its stake in shares of RingCentral by 106.7% in the 3rd quarter. Quarry LP now owns 1,902 shares of the software maker’s stock worth $60,000 after purchasing an additional 982 shares during the last quarter. 98.61% of the stock is currently owned by institutional investors and hedge funds.

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.