RingCentral (NYSE:RNG) Reaches New 52-Week Low – Here’s Why

RingCentral, Inc. (NYSE:RNG) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $23.72 and last traded at $23.75, with a volume of 330918 shares trading hands. The stock had previously closed at $25.86.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the stock. Rosenblatt Securities dropped their price target on shares of RingCentral from $45.00 to $40.00 and set a “buy” rating on the stock in a research note on Friday, February 21st. Raymond James cut their target price on RingCentral from $45.00 to $40.00 and set an “outperform” rating on the stock in a report on Friday, February 21st. Morgan Stanley upped their price target on RingCentral from $38.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Wednesday, December 18th. Needham & Company LLC cut their price objective on RingCentral from $42.00 to $36.00 and set a “buy” rating on the stock in a research note on Friday, February 21st. Finally, Robert W. Baird decreased their target price on RingCentral from $38.00 to $32.00 and set a “neutral” rating for the company in a research report on Tuesday, February 25th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, RingCentral currently has a consensus rating of “Hold” and an average price target of $37.69.

RingCentral Trading Down 5.9 %

The firm has a fifty day simple moving average of $30.30 and a 200 day simple moving average of $33.36. The stock has a market cap of $2.21 billion, a price-to-earnings ratio of -37.98, a PEG ratio of 1.27 and a beta of 1.20.

RingCentral (NYSE:RNG) last issued its earnings results on Thursday, February 20th. The software maker reported $0.23 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%. On average, equities analysts expect that RingCentral, Inc. will post 1.29 earnings per share for the current year.

Insider Buying and Selling at RingCentral

In other news, SVP John H. Marlow sold 35,089 shares of the business’s stock in a transaction on Monday, February 24th. The shares were sold at an average price of $28.56, for a total value of $1,002,141.84. Following the sale, the senior vice president now owns 313,510 shares in the company, valued at approximately $8,953,845.60. The trade was a 10.07 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Vladimir Shmunis sold 123,560 shares of the company’s stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $28.56, for a total transaction of $3,528,873.60. Following the completion of the sale, the chief executive officer now directly owns 444,740 shares in the company, valued at approximately $12,701,774.40. The trade was a 21.74 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 247,740 shares of company stock valued at $7,099,279. 6.97% of the stock is currently owned by corporate insiders.

Institutional Trading of RingCentral

Hedge funds have recently modified their holdings of the company. Fort Washington Investment Advisors Inc. OH increased its stake in shares of RingCentral by 32.5% in the fourth quarter. Fort Washington Investment Advisors Inc. OH now owns 550,304 shares of the software maker’s stock valued at $19,266,000 after buying an additional 134,928 shares in the last quarter. Hennessy Advisors Inc. acquired a new stake in RingCentral in the 4th quarter valued at about $59,055,000. Beaumont Financial Advisors LLC acquired a new position in shares of RingCentral during the fourth quarter worth approximately $262,000. 272 Capital LP bought a new stake in shares of RingCentral during the third quarter valued at approximately $436,000. Finally, Harel Insurance Investments & Financial Services Ltd. raised its position in RingCentral by 106.9% in the 4th quarter. Harel Insurance Investments & Financial Services Ltd. now owns 185,205 shares of the software maker’s stock worth $6,484,000 after purchasing an additional 95,684 shares during 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.