RingCentral (NYSE:RNG) Stock Price Down 7.2% on Analyst Downgrade

RingCentral Inc (NYSE:RNG)’s share price was down 7.2% on Wednesday after Morgan Stanley lowered their price target on the stock from $205.00 to $190.00. Morgan Stanley currently has an equal weight rating on the stock. RingCentral traded as low as $183.76 and last traded at $190.36, approximately 1,550,923 shares changed hands during mid-day trading. An increase of 8% from the average daily volume of 1,436,202 shares. The stock had previously closed at $205.08.

Several other research analysts have also weighed in on RNG. Dougherty & Co increased their price objective on RingCentral from $200.00 to $230.00 and gave the stock a “buy” rating in a research report on Friday, February 7th. Oppenheimer lowered their price objective on RingCentral from $250.00 to $203.00 and set an “outperform” rating for the company in a research report on Tuesday, March 17th. Northland Securities increased their price objective on RingCentral from $185.00 to $239.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 11th. Jefferies Financial Group increased their price objective on RingCentral from to and gave the stock a “buy” rating in a research report on Tuesday, February 11th. Finally, UBS Group increased their price objective on RingCentral from $210.00 to $250.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 11th. They noted that the move was a valuation call. Four investment analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $226.86.

In other news, CAO Vaibhav Agarwal sold 423 shares of the stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $202.36, for a total value of $85,598.28. Following the sale, the chief accounting officer now directly owns 17,760 shares in the company, valued at $3,593,913.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Mitesh Dhruv sold 2,528 shares of the stock in a transaction on Tuesday, January 14th. The shares were sold at an average price of $186.43, for a total value of $471,295.04. Following the completion of the sale, the chief financial officer now owns 256,674 shares in the company, valued at $47,851,733.82. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 111,363 shares of company stock valued at $24,869,313. Company insiders own 11.03% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in RNG. Voya Investment Management LLC raised its stake in shares of RingCentral by 58.4% in the third quarter. Voya Investment Management LLC now owns 30,704 shares of the software maker’s stock valued at $3,859,000 after acquiring an additional 11,322 shares in the last quarter. Virtu Financial LLC raised its stake in shares of RingCentral by 34.7% in the third quarter. Virtu Financial LLC now owns 6,385 shares of the software maker’s stock valued at $802,000 after acquiring an additional 1,646 shares in the last quarter. Pictet Asset Management Ltd. raised its stake in shares of RingCentral by 74.5% in the third quarter. Pictet Asset Management Ltd. now owns 396,785 shares of the software maker’s stock valued at $49,860,000 after acquiring an additional 169,369 shares in the last quarter. California State Teachers Retirement System raised its stake in shares of RingCentral by 3.2% in the third quarter. California State Teachers Retirement System now owns 114,954 shares of the software maker’s stock valued at $14,445,000 after acquiring an additional 3,606 shares in the last quarter. Finally, Public Employees Retirement System of Ohio raised its stake in RingCentral by 12.0% in the third quarter. Public Employees Retirement System of Ohio now owns 23,684 shares of the software maker’s stock valued at $2,976,000 after buying an additional 2,545 shares in the last quarter. Institutional investors and hedge funds own 85.19% of the company’s stock.

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.91 and a quick ratio of 1.91. The company has a market capitalization of $16.58 billion, a price-to-earnings ratio of -340.31 and a beta of 0.55. The stock has a 50 day simple moving average of $214.39 and a two-hundred day simple moving average of $178.05.

RingCentral (NYSE:RNG) last posted its quarterly earnings results on Monday, February 10th. The software maker reported $0.22 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.21 by $0.01. RingCentral had a negative return on equity of 2.87% and a negative net margin of 5.94%. The company had revenue of $252.87 million for the quarter, compared to analysts’ expectations of $237.38 million. During the same period last year, the firm earned $0.23 earnings per share. RingCentral’s quarterly revenue was up 34.1% on a year-over-year basis. Equities research analysts predict that RingCentral Inc will post -0.66 EPS for the current year.

RingCentral Company Profile (NYSE:RNG)

RingCentral, Inc provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The company's products include RingCentral Office, provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax through smartphones, tablets, PCs, and desk phones; RingCentral Professional, a cloud based virtual telephone service for professionals, as well as provides inbound call answering and management services, and includes inbound local, long-distance, and toll-free minutes; and RingCentral Fax that provides online fax capabilities that allow businesses to send and receive fax documents without a fax machine.

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