RingCentral (NYSE:RNG) Shares Gap Down on Disappointing Earnings

Shares of RingCentral, Inc. (NYSE:RNG) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $30.77, but opened at $29.25. RingCentral shares last traded at $28.74, with a volume of 694,611 shares.

The software maker reported $0.23 earnings per share 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 analyst estimates of $612.37 million. RingCentral had a negative net margin of 4.17% and a negative return on equity of 2.55%.

Analysts Set New Price Targets

RNG has been the topic of several recent research reports. Wells Fargo & Company reaffirmed an “underweight” rating and issued a $30.00 price objective (down previously from $38.00) on shares of RingCentral in a research note on Tuesday, January 7th. Rosenblatt Securities decreased their price target on shares of RingCentral from $45.00 to $40.00 and set a “buy” rating on the stock in a research report on Friday. Piper Sandler reduced their price objective on RingCentral from $38.00 to $31.00 and set a “neutral” rating for the company in a research note on Friday. Robert W. Baird lifted their target price on RingCentral from $36.00 to $38.00 and gave the stock a “neutral” rating in a report on Monday, November 11th. Finally, StockNews.com raised RingCentral from a “buy” rating to a “strong-buy” rating in a report on Thursday. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $39.00.

Insider Activity

In related news, Director Robert I. Theis sold 1,457 shares of the firm’s stock in a transaction on Wednesday, December 4th. The shares were sold at an average price of $37.79, for a total value of $55,060.03. Following the transaction, the director now directly owns 28,690 shares in the company, valued at approximately $1,084,195.10. This trade represents a 4.83 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Ned D. Segal sold 2,914 shares of the stock in a transaction that occurred on Thursday, December 12th. The shares were sold at an average price of $41.60, for a total value of $121,222.40. Following the sale, the director now owns 10,633 shares of the company’s stock, valued at approximately $442,332.80. The trade was a 21.51 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 13,091 shares of company stock valued at $542,958. Insiders own 6.97% of the company’s stock.

Institutional Trading of RingCentral

A number of hedge funds have recently bought and sold shares of the stock. Kayne Anderson Rudnick Investment Management LLC acquired a new position in shares of RingCentral during the fourth quarter valued at about $49,000. Venturi Wealth Management LLC increased its stake in RingCentral by 150.4% during the third quarter. Venturi Wealth Management LLC now owns 1,863 shares of the software maker’s stock valued at $59,000 after acquiring an additional 1,119 shares during the period. Quarry LP raised its holdings in RingCentral by 106.7% in the 3rd quarter. Quarry LP now owns 1,902 shares of the software maker’s stock valued at $60,000 after acquiring an additional 982 shares in the last quarter. KBC Group NV raised its holdings in RingCentral by 38.9% in the 3rd quarter. KBC Group NV now owns 2,659 shares of the software maker’s stock valued at $84,000 after acquiring an additional 744 shares in the last quarter. Finally, CWM LLC lifted its position in shares of RingCentral by 595.9% in the 3rd quarter. CWM LLC now owns 4,746 shares of the software maker’s stock worth $150,000 after acquiring an additional 4,064 shares during the period. 98.61% of the stock is owned by institutional investors.

RingCentral Trading Down 7.7 %

The company has a market cap of $2.57 billion, a price-to-earnings ratio of -26.85, a price-to-earnings-growth ratio of 1.31 and a beta of 1.01. The company has a fifty day moving average price of $35.02 and a two-hundred day moving average price of $34.29.

RingCentral Company Profile

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.