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

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

Wall Street Analysts Forecast Growth

RNG has been the topic of a number of research analyst reports. Mizuho reaffirmed a “neutral” rating and set a $42.00 price target on shares of RingCentral in a research report on Friday, December 13th. Raymond James reaffirmed an “outperform” rating and set a $45.00 target price (down previously from $50.00) on shares of RingCentral in a research note on Friday, January 3rd. Wells Fargo & Company reissued an “underweight” rating and issued a $30.00 price target (down from $38.00) on shares of RingCentral in a research note on Tuesday. Needham & Company LLC reiterated a “buy” rating and issued a $42.00 price objective on shares of RingCentral in a research note on Monday, November 11th. Finally, Wedbush boosted their target price on shares of RingCentral from $36.00 to $41.00 and gave the company a “neutral” rating in a research report on Friday, November 8th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, RingCentral currently has a consensus rating of “Hold” and an average target price of $41.29.

RingCentral Stock Performance

The company has a market cap of $3.04 billion, a price-to-earnings ratio of -31.71, a price-to-earnings-growth ratio of 2.48 and a beta of 0.99. The stock’s fifty day moving average is $37.34 and its two-hundred day moving average is $33.62.

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

Insiders Place Their Bets

In other RingCentral news, Director Ned D. Segal sold 2,914 shares of the company’s stock in a transaction on Thursday, December 12th. The stock was sold at an average price of $41.60, for a total value of $121,222.40. Following the completion of the transaction, the director now owns 10,633 shares in the company, valued at $442,332.80. This represents a 21.51 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP John H. Marlow sold 23,284 shares of RingCentral stock in a transaction on Thursday, November 21st. The stock was sold at an average price of $34.96, for a total value of $814,008.64. Following the sale, the senior vice president now owns 357,818 shares in the company, valued at $12,509,317.28. The trade was a 6.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 115,188 shares of company stock valued at $4,113,047 in the last three months. 6.97% of the stock is currently owned by insiders.

Institutional Trading of RingCentral

Large investors have recently added to or reduced their stakes in the stock. Sovereign Financial Group Inc. grew its position in shares of RingCentral by 6.9% during the 3rd quarter. Sovereign Financial Group Inc. now owns 9,693 shares of the software maker’s stock valued at $307,000 after acquiring an additional 625 shares during the period. Xponance Inc. grew its holdings in RingCentral by 6.8% during the second 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 increased its position in RingCentral by 38.9% in the third quarter. KBC Group NV now owns 2,659 shares of the software maker’s stock worth $84,000 after buying an additional 744 shares during the last quarter. Private Advisor Group LLC increased 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 buying an additional 971 shares during the last quarter. Finally, Quarry LP raised its stake in shares of RingCentral by 106.7% in the third quarter. Quarry LP now owns 1,902 shares of the software maker’s stock valued at $60,000 after buying an additional 982 shares during the period. Hedge funds and other institutional investors own 98.61% of the company’s stock.

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.