RingCentral (NYSE:RNG) Shares Gap Down – Here’s What Happened

RingCentral, Inc. (NYSE:RNG)’s share price gapped down prior to trading on Friday . The stock had previously closed at $34.83, but opened at $34.00. RingCentral shares last traded at $34.97, with a volume of 81,945 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on RNG. Mizuho reaffirmed a “neutral” rating and set a $42.00 price target on shares of RingCentral in a research report on Friday, December 13th. StockNews.com raised RingCentral from a “buy” rating to a “strong-buy” rating in a research report on Monday, November 11th. Needham & Company LLC reissued a “buy” rating and set a $42.00 price target on shares of RingCentral in a research report on Monday, November 11th. Raymond James reaffirmed an “outperform” rating and issued a $45.00 price objective (down from $50.00) on shares of RingCentral in a research note on Friday. Finally, Piper Sandler increased their target price on shares of RingCentral from $31.00 to $38.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Eight analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, RingCentral has a consensus rating of “Moderate Buy” and a consensus price target of $41.64.

RingCentral Stock Performance

The business’s fifty day simple moving average is $37.33 and its 200 day simple moving average is $33.47. The stock has a market cap of $3.20 billion, a price-to-earnings ratio of -33.40, a price-to-earnings-growth ratio of 2.48 and a beta of 0.99.

RingCentral (NYSE:RNG) last announced its earnings results on Thursday, November 7th. The software maker reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.10. The business had revenue of $608.77 million for the quarter, compared to analyst estimates of $601.91 million. RingCentral had a negative return on equity of 2.55% and a negative net margin of 4.17%. As a group, analysts forecast that RingCentral, Inc. will post 0.84 EPS for the current fiscal year.

Insider Activity

In other news, CFO Vaibhav Agarwal sold 2,178 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $35.27, for a total value of $76,818.06. Following the sale, the chief financial officer now owns 135,560 shares in the company, valued at approximately $4,781,201.20. This represents a 1.58 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP John H. Marlow sold 8,720 shares of RingCentral stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $42.05, for a total value of $366,676.00. Following the completion of the transaction, the senior vice president now owns 334,869 shares of the company’s stock, valued at $14,081,241.45. This trade represents a 2.54 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 115,188 shares of company stock worth $4,113,047. 6.97% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RNG. Commonwealth Equity Services LLC raised its position in shares of RingCentral by 19.5% during the 2nd quarter. Commonwealth Equity Services LLC now owns 8,378 shares of the software maker’s stock valued at $236,000 after acquiring an additional 1,366 shares in the last quarter. Victory Capital Management Inc. boosted its holdings in shares of RingCentral by 35.0% in the 2nd quarter. Victory Capital Management Inc. now owns 116,300 shares of the software maker’s stock valued at $3,280,000 after buying an additional 30,138 shares during the period. Acadian Asset Management LLC acquired a new position in shares of RingCentral in the 2nd quarter valued at about $1,622,000. Quest Partners LLC grew its position in shares of RingCentral by 268.7% during the 2nd quarter. Quest Partners LLC now owns 17,312 shares of the software maker’s stock valued at $488,000 after buying an additional 12,617 shares during the last quarter. Finally, PFG Investments LLC acquired a new stake in RingCentral during the second quarter worth about $716,000. 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.