RingCentral (NYSE:RNG) Sees Strong Trading Volume – Should You Buy?

RingCentral, Inc. (NYSE:RNG) saw unusually-high trading volume on Tuesday . Approximately 2,538,684 shares changed hands during trading, an increase of 108% from the previous session’s volume of 1,220,654 shares.The stock last traded at $38.25 and had previously closed at $37.76.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on RNG. Raymond James lowered their target price on shares of RingCentral from $52.00 to $50.00 and set a “strong-buy” rating for the company in a report on Friday, November 8th. Needham & Company LLC reissued a “buy” rating and set a $42.00 target price on shares of RingCentral in a research note on Monday, November 11th. Wedbush raised their price target on shares of RingCentral from $36.00 to $41.00 and gave the stock a “neutral” rating in a research note on Friday, November 8th. Piper Sandler upped their target price on shares of RingCentral from $31.00 to $38.00 and gave the stock a “neutral” rating in a research note on Friday, November 8th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $45.00 price target on shares of RingCentral in a research note on Friday, November 8th. Eight analysts have rated the stock with a hold rating, six have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $40.73.

RingCentral Stock Performance

The company has a 50 day moving average of $34.42 and a two-hundred day moving average of $32.71. The stock has a market capitalization of $3.43 billion, a PE ratio of -35.62, a P/E/G ratio of 2.39 and a beta of 0.99.

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

Insider Activity

In related news, CEO Vladimir Shmunis sold 66,451 shares of RingCentral stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $34.96, for a total transaction of $2,323,126.96. Following the completion of the transaction, the chief executive officer now directly owns 479,468 shares in the company, valued at approximately $16,762,201.28. This trade represents a 12.17 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Vaibhav Agarwal sold 1,985 shares of the company’s stock in a transaction that occurred on Tuesday, October 1st. The stock was sold at an average price of $31.40, for a total value of $62,329.00. Following the completion of the sale, the chief financial officer now owns 135,560 shares in the company, valued at approximately $4,256,584. This represents a 1.44 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 104,082 shares of company stock valued at $3,632,417 over the last ninety days. 6.76% of the stock is currently owned by insiders.

Hedge Funds Weigh In On RingCentral

Several large investors have recently made changes to their positions in RNG. Sanctuary Advisors LLC acquired a new position in shares of RingCentral in the third quarter worth about $178,000. Neo Ivy Capital Management purchased a new position in RingCentral during the third quarter worth approximately $708,000. MidWestOne Financial Group Inc. acquired a new stake in RingCentral in the third quarter valued at approximately $210,000. Groupama Asset Managment grew its holdings in RingCentral by 125.0% in the third quarter. Groupama Asset Managment now owns 3,600,000 shares of the software maker’s stock valued at $113,868,000 after purchasing an additional 2,000,000 shares during the period. Finally, Y Intercept Hong Kong Ltd acquired a new position in shares of RingCentral during the 3rd quarter worth approximately $1,132,000. 98.61% of the stock is currently owned by institutional investors and hedge funds.

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.