RingCentral (NYSE:RNG) Stock Rating Reaffirmed by Stephens

RingCentral (NYSE:RNG)‘s stock had its “hold” rating reiterated by analysts at Stephens in a note issued to investors on Monday, May 6th, AnalystRatings.com reports. They currently have a $95.00 price target on the software maker’s stock. Stephens’ price objective suggests a potential downside of 21.33% from the stock’s current price.

The analysts wrote, “We remain Equal-Weight/Vol. on valuation (9.1x CY20 EV/sales vs. CaaS peers at 5.0x), and intensifying vendor competition. KEY Key Metrics Stephens Consensus Actual vs. Street Revenue ($ mil.) 193.3 193.5 201.5 4.1% Subscription Rev. ($ mil.) 176.5 176.8 182.7 3.3% ($ mil.) 205.9 203.1 204.5 0.7% Subscription Rev. ($ mil.) 187.5 185.3 186.5 0.6% ($ mil.) 860.4 854.8 864.0 1.1% Subscription Rev. ($ mil.) 784.4 780.7 788.0 0.9% FactSet Research Systems, Company reports, Stephens Inc.””

Several other analysts have also recently commented on the stock. Bank of America lifted their price objective on shares of RingCentral from $117.00 to $135.00 and gave the company a “buy” rating in a research note on Thursday, May 2nd. Zacks Investment Research cut shares of RingCentral from a “buy” rating to a “hold” rating in a research note on Wednesday, May 1st. Rosenblatt Securities reiterated a “buy” rating and issued a $105.00 target price on shares of RingCentral in a research note on Monday, March 25th. Deutsche Bank boosted their target price on shares of RingCentral from $115.00 to $125.00 and gave the company a “buy” rating in a research note on Friday, March 22nd. Finally, Guggenheim assumed coverage on shares of RingCentral in a research note on Monday, March 11th. They issued a “buy” rating and a $125.00 target price for the company. Four equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. RingCentral presently has a consensus rating of “Buy” and an average target price of $120.72.

RNG stock traded up $1.66 during trading on Monday, reaching $120.76. The company had a trading volume of 494,560 shares, compared to its average volume of 929,982. The company has a quick ratio of 3.08, a current ratio of 3.08 and a debt-to-equity ratio of 1.19. RingCentral has a twelve month low of $64.41 and a twelve month high of $125.27. The stock has a market capitalization of $9.76 billion, a PE ratio of -3,019.00 and a beta of 0.95.

RingCentral (NYSE:RNG) last announced its quarterly earnings data on Monday, May 6th. The software maker reported ($0.01) EPS for the quarter, missing the consensus estimate of $0.15 by ($0.16). RingCentral had a negative net margin of 4.12% and a negative return on equity of 0.73%. The business had revenue of $201.50 million for the quarter, compared to analyst estimates of $193.54 million. During the same quarter in the previous year, the firm posted $0.16 earnings per share. The business’s revenue was up 34.1% on a year-over-year basis. On average, equities research analysts expect that RingCentral will post -0.43 earnings per share for the current year.

In other news, CEO Vladimir Shmunis sold 50,700 shares of the stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $105.11, for a total transaction of $5,329,077.00. Following the sale, the chief executive officer now owns 245,623 shares of the company’s stock, valued at $25,817,433.53. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mitesh Dhruv sold 1,326 shares of the stock in a transaction dated Tuesday, April 16th. The stock was sold at an average price of $106.58, for a total transaction of $141,325.08. Following the sale, the chief financial officer now directly owns 132,887 shares in the company, valued at approximately $14,163,096.46. The disclosure for this sale can be found here. Insiders sold 303,375 shares of company stock valued at $33,158,946 in the last three months. 11.03% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Signaturefd LLC lifted its position in shares of RingCentral by 31.4% during the first quarter. Signaturefd LLC now owns 364 shares of the software maker’s stock worth $39,000 after purchasing an additional 87 shares in the last quarter. Utah Retirement Systems lifted its position in shares of RingCentral by 0.8% during the fourth quarter. Utah Retirement Systems now owns 12,600 shares of the software maker’s stock worth $1,039,000 after purchasing an additional 100 shares in the last quarter. State of Alaska Department of Revenue lifted its position in shares of RingCentral by 1.9% during the fourth quarter. State of Alaska Department of Revenue now owns 8,420 shares of the software maker’s stock worth $694,000 after purchasing an additional 161 shares in the last quarter. Sheets Smith Wealth Management lifted its position in shares of RingCentral by 4.0% during the first quarter. Sheets Smith Wealth Management now owns 4,305 shares of the software maker’s stock worth $464,000 after purchasing an additional 166 shares in the last quarter. Finally, Moloney Securities Asset Management LLC lifted its position in shares of RingCentral by 6.7% during the fourth quarter. Moloney Securities Asset Management LLC now owns 3,200 shares of the software maker’s stock worth $264,000 after purchasing an additional 200 shares in the last quarter. 81.95% of the stock is currently owned by institutional investors and hedge funds.

RingCentral Company Profile

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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Analyst Recommendations for RingCentral (NYSE:RNG)

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