RingCentral (NYSE:RNG) Sets New 1-Year Low – What’s Next?

RingCentral, Inc. (NYSE:RNG) reached a new 52-week low on Monday . The company traded as low as $26.82 and last traded at $26.89, with a volume of 891235 shares trading hands. The stock had previously closed at $28.04.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on RNG shares. StockNews.com lowered RingCentral from a “strong-buy” rating to a “buy” rating in a research note on Sunday. Raymond James cut their target price on RingCentral from $45.00 to $40.00 and set an “outperform” rating for the company in a research note on Friday, February 21st. Morgan Stanley lifted their price target on shares of RingCentral from $38.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Wednesday, December 18th. 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 report on Friday, February 21st. Finally, UBS Group reduced their target price on shares of RingCentral from $40.00 to $38.00 and set a “neutral” rating on the stock in a report on Friday, February 21st. One analyst has rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company. According to MarketBeat.com, RingCentral presently has an average rating of “Hold” and an average target price of $37.69.

RingCentral Stock Performance

The stock has a market cap of $2.45 billion, a PE ratio of -42.23, a price-to-earnings-growth ratio of 1.27 and a beta of 1.20. The firm has a 50-day moving average price of $32.95 and a 200-day moving average price of $33.92.

RingCentral (NYSE:RNG) last issued its earnings results on Thursday, February 20th. The software maker reported $0.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.96 by ($0.73). The firm had revenue of $614.51 million during the quarter, compared to the consensus estimate of $612.37 million. RingCentral had a negative return on equity of 12.34% and a negative net margin of 2.43%. As a group, sell-side analysts anticipate that RingCentral, Inc. will post 1.29 EPS for the current fiscal year.

Insider Activity at RingCentral

In other RingCentral news, SVP John H. Marlow sold 8,720 shares of the business’s stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $42.05, for a total transaction of $366,676.00. Following the completion of the sale, the senior vice president now directly owns 334,869 shares in the company, valued at approximately $14,081,241.45. The trade was a 2.54 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Vladimir Shmunis sold 123,560 shares of the firm’s stock in a transaction on Monday, February 24th. The stock was sold at an average price of $28.56, for a total value of $3,528,873.60. Following the completion of the transaction, the chief executive officer now owns 444,740 shares in the company, valued at approximately $12,701,774.40. This trade represents a 21.74 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 259,374 shares of company stock valued at $7,587,178 over the last ninety days. Insiders own 6.97% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Hennessy Advisors Inc. bought a new position in shares of RingCentral in the 4th quarter worth approximately $59,055,000. Arrowstreet Capital Limited Partnership raised its position 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 worth $50,598,000 after acquiring an additional 1,164,241 shares during the period. Pacer Advisors Inc. boosted its stake in shares of RingCentral by 45.3% during the 3rd quarter. Pacer Advisors Inc. now owns 2,639,356 shares of the software maker’s stock worth $83,483,000 after acquiring an additional 822,892 shares during the last quarter. Valley Wealth Managers Inc. bought a new stake in shares of RingCentral during the 4th quarter valued at $20,792,000. Finally, Capital World Investors increased its stake in shares of RingCentral by 5.9% in 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 in the last quarter. 98.61% of the stock is owned by hedge funds and other institutional investors.

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.