StockNews.com Downgrades RingCentral (NYSE:RNG) to Buy

RingCentral (NYSE:RNG - Get Free Report) was downgraded by StockNews.com from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Tuesday.

Other analysts also recently issued research reports about the company. Mizuho reduced their price objective on RingCentral from $42.00 to $36.00 and set a "neutral" rating on the stock in a research note on Monday, February 10th. Rosenblatt Securities cut their target price on shares of RingCentral from $45.00 to $40.00 and set a "buy" rating for the company in a report on Friday, February 21st. Robert W. Baird decreased their price target on shares of RingCentral from $38.00 to $32.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 25th. Needham & Company LLC dropped their price objective on shares of RingCentral from $42.00 to $36.00 and set a "buy" rating for the company in a research note on Friday, February 21st. Finally, Wells Fargo & Company restated an "underweight" rating and issued a $30.00 target price (down from $38.00) on shares of RingCentral in a report on Tuesday, January 7th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $37.69.

RingCentral Trading Down 7.0 %

Shares of NYSE:RNG traded down $1.71 during midday trading on Tuesday, reaching $22.59. 2,188,522 shares of the company were exchanged, compared to its average volume of 1,303,517. The stock has a market cap of $2.05 billion, a PE ratio of -35.30, a price-to-earnings-growth ratio of 1.27 and a beta of 1.20. The business's fifty day moving average is $29.85 and its two-hundred day moving average is $33.26. RingCentral has a one year low of $22.14 and a one year high of $42.19.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings data on Thursday, February 20th. The software maker reported $0.23 EPS for the quarter, missing the consensus estimate of $0.96 by ($0.73). RingCentral had a negative net margin of 2.43% and a negative return on equity of 12.34%. The company had revenue of $614.51 million for the quarter, compared to the consensus estimate of $612.37 million. As a group, sell-side analysts expect that RingCentral will post 1.29 EPS for the current year.

Insider Buying and Selling

In other RingCentral news, CEO Vladimir Shmunis sold 123,560 shares of the company's stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $28.56, for a total value of $3,528,873.60. Following the transaction, the chief executive officer now directly owns 444,740 shares in the company, valued at $12,701,774.40. This represents a 21.74 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP John H. Marlow sold 35,089 shares of the stock in a transaction that occurred on Monday, February 24th. The stock was sold at an average price of $28.56, for a total value of $1,002,141.84. Following the completion of the transaction, the senior vice president now directly owns 313,510 shares in the company, valued at approximately $8,953,845.60. This trade represents a 10.07 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 247,740 shares of company stock valued at $7,099,279. Insiders own 6.97% of the company's stock.

Hedge Funds Weigh In On RingCentral

Hedge funds and other institutional investors have recently made changes to their positions in the company. Hennessy Advisors Inc. bought a new stake in RingCentral during the 4th quarter valued at $59,055,000. Arrowstreet Capital Limited Partnership raised its stake in RingCentral by 414.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,445,245 shares of the software maker's stock valued at $50,598,000 after buying an additional 1,164,241 shares during the last quarter. Valley Wealth Managers Inc. acquired a new stake in RingCentral in the fourth quarter worth about $20,792,000. Capital World Investors grew its position in RingCentral by 5.9% during the 4th 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 during the last quarter. Finally, First Trust Advisors LP grew its holdings in shares of RingCentral by 35.6% during the fourth quarter. First Trust Advisors LP now owns 2,009,286 shares of the software maker's stock valued at $70,345,000 after buying an additional 527,901 shares during the last quarter. 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.