RingCentral (NYSE:RNG) Downgraded by StockNews.com to Buy

RingCentral (NYSE:RNG) was downgraded by StockNews.com from a “strong-buy” rating to a “buy” rating in a report released on Sunday.

Several other brokerages also recently commented on RNG. Morgan Stanley upped their price objective on shares of RingCentral from $38.00 to $40.00 and gave the company an “equal weight” rating in a research note on Wednesday, December 18th. Barclays dropped their target price on RingCentral from $37.00 to $31.00 and set an “equal weight” rating on the stock in a report on Friday, February 21st. UBS Group decreased their price target on RingCentral from $40.00 to $38.00 and set a “neutral” rating for the company in a research note on Friday, February 21st. Wells Fargo & Company reiterated an “underweight” rating and issued a $30.00 price objective (down from $38.00) on shares of RingCentral in a report on Tuesday, January 7th. Finally, Mizuho decreased their target price on RingCentral from $42.00 to $36.00 and set a “neutral” rating for the company in a research report on Monday, February 10th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $37.69.

RingCentral Stock Performance

Shares of NYSE:RNG opened at $28.08 on Friday. The firm has a market capitalization of $2.55 billion, a PE ratio of -43.87, a price-to-earnings-growth ratio of 1.27 and a beta of 1.20. RingCentral has a 52-week low of $26.98 and a 52-week high of $42.19. The firm has a fifty day moving average of $32.95 and a 200 day moving average of $33.91.

RingCentral (NYSE:RNG) last released its earnings results on Thursday, February 20th. The software maker reported $0.23 earnings per share for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.73). RingCentral had a negative return on equity of 12.34% and a negative net margin of 2.43%. The firm had revenue of $614.51 million during the quarter, compared to the consensus estimate of $612.37 million. On average, sell-side analysts forecast that RingCentral will post 1.29 EPS for the current fiscal year.

Insider Activity

In related news, Director Ned D. Segal sold 2,914 shares of the company’s stock in a transaction dated Thursday, December 12th. The stock was sold at an average price of $41.60, for a total transaction of $121,222.40. Following the transaction, the director now directly owns 10,633 shares of the company’s stock, valued at $442,332.80. This represents a 21.51 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP John H. Marlow sold 8,720 shares of the firm’s stock in a transaction on Tuesday, December 10th. The stock was sold at an average price of $42.05, for a total transaction of $366,676.00. Following the completion of the transaction, the senior vice president now directly owns 334,869 shares of the company’s stock, valued at approximately $14,081,241.45. This represents a 2.54 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 259,374 shares of company stock worth $7,587,178. Company insiders own 6.97% of the company’s stock.

Institutional Investors Weigh In On RingCentral

A number of large investors have recently bought and sold shares of the company. Capital World Investors raised its position in RingCentral by 5.9% during 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 in the last quarter. Ameriprise Financial Inc. grew its holdings in RingCentral by 2.2% in the fourth quarter. Ameriprise Financial Inc. now owns 6,513,731 shares of the software maker’s stock valued at $228,050,000 after purchasing an additional 142,538 shares during the period. Pacer Advisors Inc. increased its position in shares of RingCentral by 45.3% in the third quarter. Pacer Advisors Inc. now owns 2,639,356 shares of the software maker’s stock valued at $83,483,000 after buying an additional 822,892 shares in the last quarter. First Trust Advisors LP raised its stake in shares of RingCentral by 35.6% during the 4th quarter. First Trust Advisors LP now owns 2,009,286 shares of the software maker’s stock worth $70,345,000 after buying an additional 527,901 shares during the period. Finally, Renaissance Technologies LLC raised its position in RingCentral by 11.1% during the fourth quarter. Renaissance Technologies LLC now owns 1,795,300 shares of the software maker’s stock worth $62,853,000 after acquiring an additional 180,000 shares during the period. Hedge funds and other 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.