RingCentral (NYSE:RNG) Coverage Initiated at Needham & Company LLC

Equities research analysts at Needham & Company LLC assumed coverage on shares of RingCentral (NYSE:RNG) in a research note issued to investors on Friday. The brokerage set a “buy” rating and a $36.00 price target on the software maker’s stock. Needham & Company LLC’s price objective suggests a potential upside of 29.64% from the company’s previous close.

Several other analysts have also weighed in on RNG. Raymond James lowered 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. Robert W. Baird lowered their target price on shares of RingCentral from $38.00 to $32.00 and set a “neutral” rating for the company in a research note on Tuesday, February 25th. Mizuho dropped their price objective on shares of RingCentral from $32.00 to $25.00 and set a “neutral” rating for the company in a research note on Tuesday, April 15th. StockNews.com raised RingCentral from a “buy” rating to a “strong-buy” rating in a research report on Monday, May 5th. Finally, Rosenblatt Securities decreased their price objective on shares of RingCentral from $40.00 to $28.00 and set a “buy” rating for the company in a research note on Thursday, April 24th. One analyst has rated the stock with a sell rating, seven have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, RingCentral currently has a consensus rating of “Hold” and a consensus price target of $32.62.

RingCentral Price Performance

NYSE RNG opened at $27.77 on Friday. The company has a market cap of $2.52 billion, a P/E ratio of -43.39, a P/E/G ratio of 1.27 and a beta of 1.33. RingCentral has a 1-year low of $20.59 and a 1-year high of $42.19. The stock has a 50-day moving average of $25.27 and a two-hundred day moving average of $31.85.

RingCentral (NYSE:RNG) last issued its earnings results on Thursday, May 8th. The software maker reported $1.00 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.04. RingCentral had a negative net margin of 2.43% and a negative return on equity of 12.34%. The firm had revenue of $612.06 million for the quarter, compared to analysts’ expectations of $610.53 million. During the same quarter last year, the company earned $0.87 earnings per share. The firm’s revenue was up 4.8% compared to the same quarter last year. On average, analysts anticipate that RingCentral will post 1.29 EPS for the current fiscal year.

Insiders Place Their Bets

In other RingCentral news, CEO Vladimir Shmunis sold 123,560 shares of the stock in a transaction on 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 transaction, the chief executive officer now directly owns 444,740 shares in the company, valued at $12,701,774.40. This represents a 21.74 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP John H. Marlow sold 22,979 shares of RingCentral stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $28.82, for a total transaction of $662,254.78. Following the completion of the transaction, the senior vice president now owns 348,599 shares of the company’s stock, valued at $10,046,623.18. This trade represents a 6.18 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 247,740 shares of company stock valued at $7,099,279 over the last 90 days. 6.97% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RNG. Fort Washington Investment Advisors Inc. OH boosted its stake in RingCentral by 32.5% during the 4th quarter. Fort Washington Investment Advisors Inc. OH now owns 550,304 shares of the software maker’s stock worth $19,266,000 after acquiring an additional 134,928 shares during the last quarter. Hennessy Advisors Inc. acquired a new position in shares of RingCentral during the 4th quarter worth about $59,055,000. Beaumont Financial Advisors LLC bought a new position in RingCentral in the fourth quarter valued at approximately $262,000. Harel Insurance Investments & Financial Services Ltd. grew its stake in shares of RingCentral by 106.9% in the fourth quarter. Harel Insurance Investments & Financial Services Ltd. now owns 185,205 shares of the software maker’s stock valued at $6,484,000 after buying an additional 95,684 shares in the last quarter. Finally, Private Advisor Group LLC increased its holdings in RingCentral by 9.6% during the fourth quarter. Private Advisor Group LLC now owns 8,896 shares of the software maker’s stock worth $311,000 after buying an additional 777 shares during the last quarter. Institutional investors and hedge funds own 98.61% of the company’s stock.

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.