RingCentral (NYSE:RNG) Shares Gap Down Following Weak Earnings

RingCentral, Inc. (NYSE:RNG) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $30.77, but opened at $29.25. RingCentral shares last traded at $28.74, with a volume of 694,611 shares.

The software maker reported $0.23 EPS for the quarter, missing the consensus estimate of $0.96 by ($0.73). The company had revenue of $614.51 million for the quarter, compared to analyst estimates of $612.37 million. RingCentral had a negative return on equity of 2.55% and a negative net margin of 4.17%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Wedbush boosted their price target on RingCentral from $36.00 to $41.00 and gave the company a “neutral” rating in a report on Friday, November 8th. StockNews.com upgraded RingCentral from a “buy” rating to a “strong-buy” rating in a research report on Thursday. Raymond James cut their price objective on RingCentral from $45.00 to $40.00 and set an “outperform” rating for the company in a report on Friday. Needham & Company LLC cut their target price on RingCentral from $42.00 to $36.00 and set a “buy” rating on the stock in a research report on Friday. Finally, UBS Group cut their target price on RingCentral from $40.00 to $38.00 and set a “neutral” rating on the stock in a research report on Friday. One research analyst has rated the stock with a sell rating, seven have given a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, RingCentral presently has a consensus rating of “Hold” and a consensus price target of $38.15.

Insider Transactions at RingCentral

In other RingCentral news, SVP John H. Marlow sold 8,720 shares of the firm’s 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 completion of the sale, the senior vice president now 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert I. Theis sold 1,457 shares of the stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $37.79, for a total value of $55,060.03. Following the completion of the transaction, the director now directly owns 28,690 shares of the company’s stock, valued at approximately $1,084,195.10. The trade was a 4.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 13,091 shares of company stock worth $542,958. 6.97% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On RingCentral

A number of hedge funds have recently modified their holdings of RNG. Mackenzie Financial Corp increased its holdings in RingCentral by 56.2% during the 4th quarter. Mackenzie Financial Corp now owns 127,406 shares of the software maker’s stock valued at $4,460,000 after purchasing an additional 45,848 shares in the last quarter. PharVision Advisers LLC bought a new position in shares of RingCentral in the 4th quarter worth $246,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of RingCentral by 14.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 255,792 shares of the software maker’s stock worth $8,955,000 after purchasing an additional 32,175 shares during the last quarter. Woodline Partners LP boosted its position in shares of RingCentral by 17.6% in the 4th quarter. Woodline Partners LP now owns 138,956 shares of the software maker’s stock worth $4,865,000 after purchasing an additional 20,799 shares during the last quarter. Finally, Two Sigma Advisers LP boosted its position in shares of RingCentral by 79.5% in the 4th quarter. Two Sigma Advisers LP now owns 412,700 shares of the software maker’s stock worth $14,449,000 after purchasing an additional 182,800 shares during the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

RingCentral Stock Performance

The company has a 50-day moving average price of $34.82 and a 200-day moving average price of $34.25. The firm has a market capitalization of $2.61 billion, a P/E ratio of -27.27, a price-to-earnings-growth ratio of 1.31 and a beta of 1.01.

RingCentral Company Profile

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.