RingCentral (RNG) Downgraded 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 report issued 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 subject of several other reports. Jefferies Group raised their price objective on RingCentral from $81.00 to $84.00 and gave the stock a “buy” rating in a research note on Thursday, May 10th. Morgan Stanley raised their price objective on RingCentral from $60.00 to $66.00 and gave the stock a “hold” rating in a research note on Friday, April 27th. Stephens reissued a “buy” rating and set a $60.00 price objective on shares of RingCentral in a research note on Tuesday, February 13th. SunTrust Banks raised their price objective on RingCentral to $80.00 and gave the stock a “buy” rating in a research note on Thursday, May 10th. Finally, JPMorgan Chase raised their price objective on RingCentral to $76.00 and gave the stock a “neutral” rating in a research note on Thursday, May 10th. They noted that the move was a valuation call. Four equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $65.62.

RNG opened at $76.90 on Wednesday. The firm has a market cap of $5.79 billion, a PE ratio of -219.71 and a beta of 0.67. The company has a debt-to-equity ratio of 1.29, a current ratio of 4.71 and a quick ratio of 4.71. RingCentral has a fifty-two week low of $73.55 and a fifty-two week high of $75.25.

RingCentral (NYSE:RNG) last released its quarterly earnings data on Wednesday, May 9th. The software maker reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.04. The business had revenue of $150.00 million during the quarter, compared to analyst estimates of $145.41 million. RingCentral had a negative return on equity of 9.90% and a negative net margin of 3.99%. The company’s revenue was up 33.9% compared to the same quarter last year. During the same period last year, the company posted $0.03 EPS. equities research analysts forecast that RingCentral will post -0.2 earnings per share for the current fiscal year.

RingCentral announced that its board has initiated a share buyback plan on Tuesday, February 27th that allows the company to repurchase $35.00 million in shares. This repurchase authorization allows the software maker to buy shares of its stock through a private placement purchase. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

In related news, CEO Vladimir Shmunis sold 52,509 shares of the stock in a transaction on Thursday, February 22nd. The stock was sold at an average price of $64.06, for a total transaction of $3,363,726.54. Following the completion of the sale, the chief executive officer now directly owns 300,154 shares in the company, valued at $19,227,865.24. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO David Sipes sold 9,300 shares of the stock in a transaction on Wednesday, April 18th. The stock was sold at an average price of $68.86, for a total value of $640,398.00. Following the sale, the chief operating officer now owns 317,520 shares of the company’s stock, valued at $21,864,427.20. The disclosure for this sale can be found here. Insiders sold 225,269 shares of company stock valued at $14,582,112 in the last 90 days. Corporate insiders own 11.99% of the company’s stock.

Large investors have recently made changes to their positions in the stock. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of RingCentral by 108.7% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,331 shares of the software maker’s stock worth $161,000 after acquiring an additional 1,735 shares in the last quarter. Public Employees Retirement Association of Colorado purchased a new stake in shares of RingCentral during the fourth quarter worth $174,000. IFP Advisors Inc purchased a new stake in shares of RingCentral during the first quarter worth $198,000. Stifel Financial Corp purchased a new stake in shares of RingCentral during the first quarter worth $201,000. Finally, Parametrica Management Ltd purchased a new stake in shares of RingCentral during the fourth quarter worth $202,000. Institutional investors and hedge funds own 75.02% of the company’s stock.

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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