RingCentral (RNG) Downgraded to “Hold” at Zacks Investment Research

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Zacks Investment Research lowered shares of RingCentral (NYSE:RNG) from a strong-buy rating to a hold rating in a report released on Wednesday morning.

According to Zacks, “RingCentral, Inc. provides solutions for business communications primarily in the United States. The Company’s products include RingCentral Office, RingCentral Mobile and RingCentral Fax. It provides solutions such as auto-receptionist, flexible extension structure, multiple voicemail boxes, smart call routing, business answering rules, extension dialing, call transfers and elegant integration with Smartphones. RingCentral, Inc. is headquartered in San Mateo, California. “

A number of other analysts have also issued reports on the company. Rosenblatt Securities reissued a buy rating and issued a $100.00 price target on shares of RingCentral in a research note on Wednesday. Bank of America decreased their price target on RingCentral from $100.00 to $93.00 and set a buy rating on the stock in a research note on Tuesday. Deutsche Bank assumed coverage on RingCentral in a research note on Monday, October 8th. They issued a buy rating and a $105.00 price target on the stock. Jefferies Financial Group raised their price target on RingCentral to $105.00 and gave the stock a buy rating in a research note on Wednesday, September 5th. Finally, Dougherty & Co raised their price target on RingCentral from $85.00 to $95.00 and gave the stock a buy rating in a research note on Tuesday, August 7th. Three equities research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of Buy and a consensus target price of $89.80.

Shares of RNG traded down $2.54 during trading hours on Wednesday, reaching $83.68. 2,242,013 shares of the company traded hands, compared to its average volume of 1,136,482. The company has a quick ratio of 4.32, a current ratio of 4.32 and a debt-to-equity ratio of 1.24. RingCentral has a fifty-two week low of $43.85 and a fifty-two week high of $98.15.

RingCentral (NYSE:RNG) last issued its quarterly earnings results on Monday, November 5th. The software maker reported $0.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.03. RingCentral had a negative return on equity of 3.84% and a negative net margin of 4.25%. The firm had revenue of $173.83 million for the quarter, compared to analyst estimates of $166.70 million. During the same period last year, the company earned $0.06 EPS. The firm’s quarterly revenue was up 33.4% on a year-over-year basis. On average, equities analysts expect that RingCentral will post -0.09 EPS for the current fiscal year.

In other news, insider Praful Shah sold 3,109 shares of RingCentral stock in a transaction dated Tuesday, August 28th. The stock was sold at an average price of $93.62, for a total value of $291,064.58. Following the transaction, the insider now directly owns 308,204 shares of the company’s stock, valued at approximately $28,854,058.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mitesh Dhruv sold 1,264 shares of RingCentral stock in a transaction dated Friday, September 7th. The shares were sold at an average price of $94.60, for a total value of $119,574.40. Following the completion of the transaction, the chief financial officer now directly owns 159,952 shares in the company, valued at $15,131,459.20. The disclosure for this sale can be found here. Insiders sold a total of 250,849 shares of company stock worth $22,442,584 over the last ninety days. Corporate insiders own 11.99% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RNG. US Bancorp DE raised its holdings in shares of RingCentral by 141.7% during the 2nd quarter. US Bancorp DE now owns 1,745 shares of the software maker’s stock valued at $123,000 after buying an additional 1,023 shares during the period. DekaBank Deutsche Girozentrale raised its holdings in shares of RingCentral by 75.1% during the 3rd quarter. DekaBank Deutsche Girozentrale now owns 1,401 shares of the software maker’s stock valued at $130,000 after buying an additional 601 shares during the period. Harvest Fund Management Co. Ltd raised its holdings in shares of RingCentral by 287.0% during the 3rd quarter. Harvest Fund Management Co. Ltd now owns 1,513 shares of the software maker’s stock valued at $141,000 after buying an additional 1,122 shares during the period. Sun Life Financial INC purchased a new stake in shares of RingCentral during the 2nd quarter valued at about $185,000. Finally, NewSquare Capital LLC purchased a new stake in shares of RingCentral during the 2nd quarter valued at about $188,000. 78.47% of the stock is currently owned by institutional investors and hedge funds.

RingCentral Company Profile

RingCentral, Inc provides software-as-a-service solutions for business communications and collaboration primarily in the United States. The company's products include RingCentral Office, a multi-tenant, multi-location, and enterprise-grade communications and collaboration solution that enables employees to communicate through voice, text, team messaging and collaboration, and HD video and Web conferencing through smartphones, tablets, PCs, and desk phones for businesses, which require a communications solution; RingCentral Professional, an inbound call routing subscription with additional text and fax capabilities primarily for smaller businesses; and RingCentral Fax solution that offers Internet fax capabilities, which allow businesses to send and receive fax documents without the need for a fax machine.

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