RingCentral (NYSE:RNG) Shares Down 3.1% – Here’s Why

RingCentral, Inc. (NYSE:RNG) shares were down 3.1% during mid-day trading on Tuesday . The company traded as low as $34.69 and last traded at $35.62. Approximately 383,610 shares were traded during trading, a decline of 56% from the average daily volume of 880,499 shares. The stock had previously closed at $36.77.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Piper Sandler raised their target price on RingCentral from $31.00 to $38.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Morgan Stanley lifted their target price on shares of RingCentral from $38.00 to $40.00 and gave the company an “equal weight” rating in a research report on Wednesday, December 18th. StockNews.com raised shares of RingCentral from a “buy” rating to a “strong-buy” rating in a research report on Monday, November 11th. Wedbush lifted their price objective on RingCentral from $36.00 to $41.00 and gave the company a “neutral” rating in a report on Friday, November 8th. Finally, Raymond James reissued an “outperform” rating and issued a $45.00 target price (down from $50.00) on shares of RingCentral in a report on Friday. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $41.29.

RingCentral Trading Down 6.6 %

The firm has a market cap of $3.10 billion, a price-to-earnings ratio of -32.39, a price-to-earnings-growth ratio of 2.48 and a beta of 0.99. The stock’s 50 day moving average is $37.38 and its 200 day moving average is $33.57.

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

Insider Activity

In other news, CEO Vladimir Shmunis sold 66,451 shares of RingCentral stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $34.96, for a total transaction of $2,323,126.96. Following the transaction, the chief executive officer now owns 479,468 shares in the company, valued at approximately $16,762,201.28. The trade was a 12.17 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP John H. Marlow sold 23,284 shares of the company’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $34.96, for a total value of $814,008.64. Following the completion of the sale, the senior vice president now owns 357,818 shares in the company, valued at $12,509,317.28. This trade represents a 6.11 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 115,188 shares of company stock worth $4,113,047. Corporate insiders own 6.97% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RNG. Diversified Trust Co raised its stake in RingCentral by 89.9% during the fourth quarter. Diversified Trust Co now owns 28,499 shares of the software maker’s stock worth $998,000 after buying an additional 13,491 shares during the last quarter. Central Pacific Bank Trust Division lifted its stake in shares of RingCentral by 31.1% in the 4th quarter. Central Pacific Bank Trust Division now owns 5,033 shares of the software maker’s stock valued at $176,000 after purchasing an additional 1,194 shares during the period. Principal Financial Group Inc. bought a new stake in shares of RingCentral during the 3rd quarter valued at about $233,000. 272 Capital LP acquired a new stake in RingCentral during the third quarter worth approximately $436,000. Finally, Sanctuary Advisors LLC bought a new stake in RingCentral in the third quarter worth approximately $178,000. 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.