RingCentral (RNG) Rating Lowered to Hold at Zacks Investment Research

RingCentral (NYSE:RNG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.

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. “

RNG has been the topic of a number of other reports. Northland Securities set a $61.00 target price on RingCentral and gave the company a “buy” rating in a research report on Tuesday, February 13th. Morgan Stanley raised their target price on RingCentral from $60.00 to $66.00 and gave the company a “hold” rating in a research report on Friday, April 27th. TheStreet upgraded RingCentral from a “d+” rating to a “c-” rating in a research report on Monday, February 12th. Jefferies Group raised their price target on shares of RingCentral from $81.00 to $84.00 and gave the company a “buy” rating in a research note on Thursday, May 10th. Finally, ValuEngine raised shares of RingCentral from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, May 2nd. Four equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. RingCentral presently has an average rating of “Buy” and an average target price of $65.62.

NYSE:RNG opened at $73.60 on Wednesday. RingCentral has a 52 week low of $71.75 and a 52 week high of $73.80. The company has a debt-to-equity ratio of 1.29, a quick ratio of 4.71 and a current ratio of 4.71. The stock has a market cap of $5.88 billion, a PE ratio of -210.29 and a beta of 0.67.

RingCentral (NYSE:RNG) last posted its earnings results on Wednesday, May 9th. The software maker reported $0.16 EPS for the quarter, beating the Zacks’ consensus estimate of $0.12 by $0.04. RingCentral had a negative return on equity of 9.90% and a negative net margin of 3.99%. The firm had revenue of $150.00 million for the quarter, compared to analysts’ expectations of $145.41 million. During the same period last year, the firm earned $0.03 EPS. The company’s quarterly revenue was up 33.9% on a year-over-year basis. analysts expect that RingCentral will post -0.2 EPS for the current fiscal year.

RingCentral declared that its Board of Directors has authorized a share buyback plan on Tuesday, February 27th that authorizes the company to repurchase $35.00 million in outstanding shares. This repurchase authorization authorizes the software maker to repurchase shares of its stock through a private placement purchase. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

In other RingCentral news, CEO Vladimir Shmunis sold 36,472 shares of the firm’s stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $64.64, for a total value of $2,357,550.08. Following the transaction, the chief executive officer now directly owns 300,154 shares of the company’s stock, valued at approximately $19,401,954.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Praful Shah sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, February 21st. The stock was sold at an average price of $64.34, for a total transaction of $643,400.00. The disclosure for this sale can be found here. Insiders sold a total of 225,269 shares of company stock worth $14,582,112 over the last ninety days. 11.99% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Fox Run Management L.L.C. purchased a new position in RingCentral in the 4th quarter worth approximately $576,000. Schwab Charles Investment Management Inc. increased its holdings in shares of RingCentral by 7.9% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 309,944 shares of the software maker’s stock worth $15,002,000 after buying an additional 22,564 shares during the last quarter. Two Sigma Advisers LP increased its holdings in shares of RingCentral by 2.6% during the 4th quarter. Two Sigma Advisers LP now owns 389,638 shares of the software maker’s stock worth $18,858,000 after buying an additional 9,739 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in shares of RingCentral by 108.7% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,331 shares of the software maker’s stock worth $161,000 after buying an additional 1,735 shares during the last quarter. Finally, Ladenburg Thalmann Financial Services Inc. increased its holdings in shares of RingCentral by 143.9% during the 4th quarter. Ladenburg Thalmann Financial Services Inc. now owns 7,874 shares of the software maker’s stock worth $381,000 after buying an additional 4,645 shares during the last quarter. 75.02% of the stock is currently owned by institutional investors and hedge funds.

About RingCentral

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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