RingCentral (NYSE:RNG) Sets New 12-Month Low - Here's Why

RingCentral, Inc. (NYSE:RNG - Get Free Report) reached a new 52-week low on Friday . The stock traded as low as $26.05 and last traded at $26.11, with a volume of 380629 shares trading hands. The stock had previously closed at $27.28.

Analyst Ratings Changes

A number of research firms have issued reports on RNG. Morgan Stanley increased their price objective on RingCentral from $38.00 to $40.00 and gave the stock an "equal weight" rating in a report on Wednesday, December 18th. StockNews.com upgraded shares of RingCentral from a "buy" rating to a "strong-buy" rating in a research note on Monday, March 17th. Mizuho dropped their price objective on shares of RingCentral from $42.00 to $36.00 and set a "neutral" rating on the stock in a research note on Monday, February 10th. Raymond James decreased their target price on shares of RingCentral from $45.00 to $40.00 and set an "outperform" rating for the company in a research note on Friday, February 21st. Finally, Robert W. Baird dropped their price target on RingCentral from $38.00 to $32.00 and set a "neutral" rating on the stock in a research report on Tuesday, February 25th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, five have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $37.69.

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RingCentral Stock Up 2.6 %

The stock has a market capitalization of $2.30 billion, a PE ratio of -39.68, a PEG ratio of 1.27 and a beta of 1.20. The firm's fifty day moving average price is $30.46 and its two-hundred day moving average price is $33.41.

RingCentral (NYSE:RNG - Get Free Report) last announced 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). The company had revenue of $614.51 million for the quarter, compared to analysts' expectations of $612.37 million. RingCentral had a negative net margin of 2.43% and a negative return on equity of 12.34%. As a group, analysts predict that RingCentral, Inc. will post 1.29 EPS for the current year.

Insider Activity

In other RingCentral news, CEO Vladimir Shmunis sold 66,112 shares of the company's stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $28.83, for a total transaction of $1,906,008.96. Following the completion of the sale, the chief executive officer now directly owns 568,300 shares of the company's stock, valued at approximately $16,384,089. This represents a 10.42 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP John H. Marlow sold 22,979 shares of RingCentral stock in a transaction on Friday, February 21st. The stock was sold at an average price of $28.82, for a total transaction of $662,254.78. Following the transaction, the senior vice president now owns 348,599 shares in the company, valued at $10,046,623.18. This represents a 6.18 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 247,740 shares of company stock valued at $7,099,279 in the last quarter. 6.97% of the stock is currently owned by insiders.

Institutional Trading of RingCentral

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Hennessy Advisors Inc. bought a new position in shares of RingCentral during the 4th quarter valued at approximately $59,055,000. Arrowstreet Capital Limited Partnership boosted its position in shares of RingCentral by 414.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,445,245 shares of the software maker's stock worth $50,598,000 after purchasing an additional 1,164,241 shares during the period. Valley Wealth Managers Inc. bought a new position in shares of RingCentral in the fourth quarter worth approximately $20,792,000. Capital World Investors increased its stake in shares of RingCentral by 5.9% in the fourth quarter. Capital World Investors now owns 10,663,441 shares of the software maker's stock worth $373,327,000 after purchasing an additional 591,398 shares in the last quarter. Finally, First Trust Advisors LP raised its position 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 valued at $70,345,000 after purchasing an additional 527,901 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.