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

RingCentral, Inc. (NYSE:RNG) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.96 by ($0.73). RingCentral had a negative net margin of 4.17% and a negative return on equity of 2.55%. The firm had revenue of $614.51 million during the quarter, compared to analyst estimates of $612.37 million.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. StockNews.com raised RingCentral from a “buy” rating to a “strong-buy” rating in a research report on Thursday. Wedbush boosted their price target on RingCentral from $36.00 to $41.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Needham & Company LLC reduced their price objective on RingCentral from $42.00 to $36.00 and set a “buy” rating for the company in a report on Friday. Wells Fargo & Company reiterated an “underweight” rating and issued a $30.00 price target (down from $38.00) on shares of RingCentral in a research note on Tuesday, January 7th. Finally, Barclays lowered their price objective on shares of RingCentral from $37.00 to $31.00 and set an “equal weight” rating for the company 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 assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $38.15.

Insider Activity at RingCentral

In other news, SVP John H. Marlow sold 8,720 shares of the stock in a transaction dated Tuesday, December 10th. The shares were sold at an average price of $42.05, for a total transaction of $366,676.00. Following the transaction, the senior vice president now owns 334,869 shares of the company’s stock, valued at $14,081,241.45. This represents a 2.54 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Ned D. Segal sold 2,914 shares of the 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 in the company, valued at $442,332.80. This trade represents a 21.51 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 13,091 shares of company stock worth $542,958 over the last three months. Company insiders own 6.97% of the company’s stock.

Hedge Funds Weigh In On RingCentral

Several large investors have recently added to or reduced their stakes in RNG. Kayne Anderson Rudnick Investment Management LLC purchased a new stake in RingCentral in the 4th quarter valued at about $49,000. Venturi Wealth Management LLC increased its stake in shares of RingCentral by 150.4% during the 3rd quarter. Venturi Wealth Management LLC now owns 1,863 shares of the software maker’s stock worth $59,000 after purchasing an additional 1,119 shares during the last quarter. Quarry LP boosted its holdings in 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 buying an additional 982 shares during the period. KBC Group NV boosted its holdings in RingCentral by 38.9% in the 3rd 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 period. Finally, CWM LLC boosted its holdings in RingCentral by 595.9% in the 3rd quarter. CWM LLC now owns 4,746 shares of the software maker’s stock valued at $150,000 after purchasing an additional 4,064 shares during the period. Institutional investors own 98.61% of the company’s stock.

RingCentral Stock Performance

The business’s 50-day moving average price is $34.82 and its 200 day moving average price is $34.25. The stock has a market capitalization of $2.61 billion, a PE 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.