RingCentral (NYSE:RNG) Shares Gap Down – Time to Sell?

RingCentral, Inc. (NYSE:RNG) shares gapped down before the market opened 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 traded.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. Raymond James reiterated an “outperform” rating and issued a $45.00 target price (down from $50.00) on shares of RingCentral in a research note on Friday. StockNews.com raised shares of RingCentral from a “buy” rating to a “strong-buy” rating in a research note on Monday, November 11th. Needham & Company LLC restated a “buy” rating and issued a $42.00 price target on shares of RingCentral in a research note on Monday, November 11th. Wedbush boosted their price objective on RingCentral from $36.00 to $41.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $45.00 price objective on shares of RingCentral in a report on Friday, November 8th. Eight investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $41.64.

RingCentral Stock Up 1.6 %

The stock has a market capitalization of $3.20 billion, a P/E ratio of -33.40, a PEG ratio of 2.48 and a beta of 0.99. The firm’s 50-day simple moving average is $37.33 and its 200 day simple moving average is $33.47.

RingCentral (NYSE:RNG) last released its earnings results on Thursday, November 7th. The software maker reported $0.24 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 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, equities analysts anticipate that RingCentral, Inc. will post 0.84 EPS for the current fiscal year.

Insider Transactions at RingCentral

In related news, Director Robert I. Theis sold 1,457 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $37.79, for a total value of $55,060.03. Following the completion of the transaction, the director now owns 28,690 shares of the company’s stock, valued at approximately $1,084,195.10. This trade represents a 4.83 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, 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 transaction, 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 115,188 shares of company stock valued at $4,113,047 in the last three months. 6.97% of the stock is currently owned by corporate insiders.

Institutional Trading of RingCentral

Several hedge funds and other institutional investors have recently modified their holdings of the business. Commonwealth Equity Services LLC lifted its stake in RingCentral by 19.5% in the 2nd quarter. Commonwealth Equity Services LLC now owns 8,378 shares of the software maker’s stock worth $236,000 after acquiring an additional 1,366 shares in the last quarter. Victory Capital Management Inc. increased 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 purchasing an additional 30,138 shares during the period. Acadian Asset Management LLC purchased a new stake in shares of RingCentral in the second quarter worth approximately $1,622,000. Quest Partners LLC boosted its holdings in shares of RingCentral by 268.7% during the second quarter. Quest Partners LLC now owns 17,312 shares of the software maker’s stock worth $488,000 after purchasing an additional 12,617 shares during the period. Finally, PFG Investments LLC purchased a new position in RingCentral during the second quarter valued at approximately $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.