RingCentral’s (RNG) “Buy” Rating Reaffirmed at Needham & Company LLC

RingCentral (NYSE:RNG)‘s stock had its “buy” rating restated by equities research analysts at Needham & Company LLC in a research report issued to clients and investors on Wednesday, Benzinga reports. They presently have a $42.00 target price on the software maker’s stock. Needham & Company LLC’s price target suggests a potential upside of 40.00% from the company’s current price.

Several other equities analysts have also recently issued reports on RNG. KeyCorp decreased their price target on RingCentral from $50.00 to $48.00 and set an “overweight” rating on the stock in a report on Wednesday, February 21st. Wedbush reiterated a “neutral” rating and issued a $40.00 price objective on shares of RingCentral in a report on Friday, February 16th. The Goldman Sachs Group decreased their price objective on shares of RingCentral from $38.00 to $34.00 and set a “neutral” rating for the company in a report on Wednesday, February 21st. Rosenblatt Securities restated a “neutral” rating and set a $35.00 target price on shares of RingCentral in a report on Wednesday, May 1st. Finally, Piper Sandler reduced their price objective on RingCentral from $34.00 to $31.00 and set a “neutral” rating for the company in a research report on Wednesday, February 21st. Eight analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $38.67.

RingCentral Price Performance

Shares of RNG opened at $30.00 on Wednesday. The company has a market capitalization of $2.77 billion, a P/E ratio of -17.14, a PEG ratio of 3.24 and a beta of 0.94. RingCentral has a one year low of $25.08 and a one year high of $43.28. The business’s 50 day simple moving average is $32.80 and its 200-day simple moving average is $31.90.

RingCentral (NYSE:RNG) last issued its quarterly earnings data on Tuesday, February 20th. The software maker reported ($0.33) EPS for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.31). The business had revenue of $571.27 million for the quarter, compared to analysts’ expectations of $569.65 million. On average, sell-side analysts anticipate that RingCentral will post 0.45 EPS for the current fiscal year.

Insider Activity

In related news, CFO Vaibhav Agarwal sold 14,113 shares of the business’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $34.84, for a total transaction of $491,696.92. Following the transaction, the chief financial officer now directly owns 116,640 shares of the company’s stock, valued at approximately $4,063,737.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, Director Kenneth A. Goldman sold 1,287 shares of the business’s stock in a transaction that occurred on Thursday, March 7th. The stock was sold at an average price of $34.47, for a total transaction of $44,362.89. Following the completion of the sale, the director now owns 23,688 shares in the company, valued at $816,525.36. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Vaibhav Agarwal sold 14,113 shares of RingCentral stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $34.84, for a total value of $491,696.92. Following the sale, the chief financial officer now directly owns 116,640 shares of the company’s stock, valued at $4,063,737.60. The disclosure for this sale can be found here. Insiders sold a total of 23,608 shares of company stock valued at $800,974 over the last three months. Insiders own 6.76% of the company’s stock.

Institutional Investors Weigh In On RingCentral

Hedge funds and other institutional investors have recently modified their holdings of the company. Sylebra Capital LLC acquired a new stake in RingCentral in the 3rd quarter worth about $242,462,000. Ameriprise Financial Inc. grew its holdings in shares of RingCentral by 515.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 2,716,470 shares of the software maker’s stock worth $80,489,000 after purchasing an additional 2,275,245 shares in the last quarter. Norges Bank bought a new position in shares of RingCentral in the fourth quarter worth $30,471,000. Maple Rock Capital Partners Inc. bought a new stake in RingCentral during the third quarter worth about $15,510,000. Finally, Vanguard Group Inc. grew its stake in RingCentral by 4.9% during the third quarter. Vanguard Group Inc. now owns 9,988,881 shares of the software maker’s stock worth $295,971,000 after buying an additional 469,280 shares in the last quarter. Institutional investors and hedge funds 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.