RingCentral (NYSE:RNG) Hits New 52-Week High – Still a Buy?

RingCentral, Inc. (NYSE:RNG)’s stock price hit a new 52-week high during trading on Tuesday. The company traded as high as $82.14 and last traded at $81.1150, with a volume of 177,881 shares trading hands. The stock had previously closed at $79.19.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on RNG shares. Mizuho boosted their price target on RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Piper Sandler increased their price objective on RingCentral from $40.00 to $43.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Weiss Ratings raised RingCentral from a “hold (c)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Rosenblatt Securities reiterated a “buy” rating and set a $50.00 price objective on shares of RingCentral in a research report on Friday, July 24th. Finally, Royal Bank Of Canada started coverage on shares of RingCentral in a research note on Thursday, September 3rd. They issued an “outperform” rating and a $85.00 target price for the company. Five analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, RingCentral presently has an average rating of “Hold” and an average price target of $56.00.

RingCentral Trading Up 1.3%

The company’s 50 day simple moving average is $73.40 and its 200 day simple moving average is $53.74. The stock has a market capitalization of $6.90 billion, a PE ratio of 66.12, a PEG ratio of 1.41 and a beta of 1.10.

RingCentral (NYSE:RNG) last issued its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.06. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%. The company had revenue of $657.01 million for the quarter, compared to analyst estimates of $650.53 million. During the same quarter in the prior year, the company posted $1.06 EPS. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. As a group, analysts predict that RingCentral, Inc. will post 2.89 EPS for the current year.

Insiders Place Their Bets

In related news, COO Kira Makagon sold 36,185 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $70.11, for a total value of $2,536,930.35. Following the completion of the transaction, the chief operating officer directly owned 245,385 shares in the company, valued at approximately $17,203,942.35. This represents a 12.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Agarwal sold 7,046 shares of the company’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $72.10, for a total value of $508,016.60. Following the completion of the transaction, the chief financial officer owned 146,700 shares of the company’s stock, valued at $10,577,070. The trade was a 4.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 84,625 shares of company stock valued at $6,024,953. 7.30% of the stock is currently owned by company insiders.

Institutional Trading of RingCentral

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fortitude Family Office LLC increased its stake in shares of RingCentral by 128.1% during the 3rd quarter. Fortitude Family Office LLC now owns 349 shares of the software maker’s stock valued at $26,000 after acquiring an additional 196 shares during the last quarter. Elevation Wealth Partners LLC lifted its holdings in shares of RingCentral by 119.3% during the 3rd quarter. Elevation Wealth Partners LLC now owns 546 shares of the software maker’s stock worth $41,000 after acquiring an additional 297 shares during the period. WealthCollab LLC boosted its position in shares of RingCentral by 59.7% in the first quarter. WealthCollab LLC now owns 693 shares of the software maker’s stock worth $26,000 after acquiring an additional 259 shares during the last quarter. Meeder Asset Management Inc. boosted its position in shares of RingCentral by 127.3% in the first quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker’s stock worth $27,000 after acquiring an additional 410 shares during the last quarter. Finally, Rockefeller Capital Management L.P. boosted its position in shares of RingCentral by 70.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker’s stock worth $30,000 after acquiring an additional 424 shares during the last quarter. Hedge funds and other institutional investors own 98.61% of the company’s stock.

About RingCentral

RingCentral, Inc is a provider of cloud-based business communications and collaboration solutions. Its platform enables organizations to manage business phone services, team messaging, video meetings, contact center operations and other communications through internet-based applications rather than traditional on-premises systems.

The company’s offerings include RingEX, a unified communications platform that combines voice, messaging and video; RingCentral Video for online meetings and collaboration; and RingCX, a cloud contact center solution.