RingCentral (NYSE:RNG) Shares Up 7.1% – Time to Buy?

RingCentral, Inc. (NYSE:RNG) shares shot up 7.1% during mid-day trading on Wednesday . The stock traded as high as $39.81 and last traded at $39.67. 522,984 shares were traded during trading, a decline of 57% from the average session volume of 1,222,771 shares. The stock had previously closed at $37.05.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Wedbush boosted their price target on RingCentral from $36.00 to $41.00 and gave the company a “neutral” rating in a report on Friday, November 8th. Robert W. Baird upped their price objective on shares of RingCentral from $36.00 to $38.00 and gave the company a “neutral” rating in a research note on Monday, November 11th. Rosenblatt Securities reaffirmed a “buy” rating and set a $45.00 price target on shares of RingCentral in a research report on Friday, November 8th. StockNews.com upgraded shares of RingCentral from a “buy” rating to a “strong-buy” rating in a report on Monday, November 11th. Finally, Piper Sandler boosted their price target on RingCentral from $31.00 to $38.00 and gave the company a “neutral” rating in a research report on Friday, November 8th. Eight equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, RingCentral currently has a consensus rating of “Moderate Buy” and an average price target of $40.73.

RingCentral Stock Up 5.7 %

The stock has a market cap of $3.68 billion, a P/E ratio of -36.32, a price-to-earnings-growth ratio of 2.35 and a beta of 0.99. The firm’s 50 day simple moving average is $34.89 and its two-hundred day simple moving average is $32.80.

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

Insider Buying and Selling

In other news, SVP John H. Marlow sold 23,284 shares of the firm’s stock in a transaction on Thursday, November 21st. The stock was sold at an average price of $34.96, for a total transaction of $814,008.64. Following the completion of the sale, the senior vice president now directly owns 357,818 shares of the company’s stock, valued at $12,509,317.28. This trade represents a 6.11 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Vladimir Shmunis sold 66,451 shares of the business’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $34.96, for a total value of $2,323,126.96. Following the sale, the chief executive officer now owns 479,468 shares in the company, valued at approximately $16,762,201.28. The trade was a 12.17 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 104,082 shares of company stock valued at $3,632,417 in the last quarter. Company insiders own 6.76% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RNG. Victory Capital Management Inc. grew its position in RingCentral by 35.0% during the 2nd quarter. Victory Capital Management Inc. now owns 116,300 shares of the software maker’s stock worth $3,280,000 after purchasing an additional 30,138 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of RingCentral by 65.9% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 381,178 shares of the software maker’s stock worth $12,057,000 after buying an additional 151,433 shares during the period. Olympiad Research LP purchased a new position in shares of RingCentral during the third quarter valued at $483,000. Scientech Research LLC acquired a new position in RingCentral during the second quarter valued at $957,000. Finally, Dimensional Fund Advisors LP acquired a new stake in RingCentral during the 2nd quarter worth about $3,630,000. 98.61% of the stock is owned by hedge funds and other institutional investors.

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.