RingCentral (RNG) Shares Gap Down After Earnings Miss

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RingCentral Inc (NYSE:RNG) shares gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $123.77, but opened at $121.06. RingCentral shares last traded at $118.15, with a volume of 2352637 shares traded.

The software maker reported ($0.01) EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.16). RingCentral had a negative return on equity of 0.69% and a negative net margin of 3.89%. The firm had revenue of $201.50 million during the quarter, compared to analyst estimates of $193.54 million. During the same quarter in the prior year, the company posted $0.16 EPS. The company’s quarterly revenue was up 34.1% on a year-over-year basis.

RNG has been the topic of a number of research reports. Zacks Investment Research downgraded RingCentral from a “buy” rating to a “hold” rating in a report on Saturday, February 16th. Bank of America restated a “buy” rating and issued a $110.00 price objective (up previously from $93.00) on shares of RingCentral in a report on Thursday, February 7th. Jefferies Financial Group increased their price objective on RingCentral from $105.00 to $115.00 and gave the stock a “buy” rating in a report on Tuesday, February 12th. Northland Securities increased their price objective on RingCentral from $124.00 to $148.00 and gave the stock an “outperform” rating in a report on Tuesday. Finally, Raymond James increased their price objective on RingCentral from $116.00 to $140.00 and gave the stock a “strong-buy” rating in a report on Tuesday. Four research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $120.72.

In other RingCentral news, Director Mckenna Michelle sold 2,000 shares of the company’s stock in a transaction that occurred on Friday, February 15th. The stock was sold at an average price of $103.44, for a total transaction of $206,880.00. Following the completion of the sale, the director now owns 6,662 shares of the company’s stock, valued at $689,117.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mitesh Dhruv sold 1,326 shares of the company’s stock in a transaction that occurred on Tuesday, April 16th. The stock was sold at an average price of $106.58, for a total value of $141,325.08. Following the sale, the chief financial officer now directly owns 132,887 shares of the company’s stock, valued at approximately $14,163,096.46. The disclosure for this sale can be found here. Insiders have sold 513,774 shares of company stock valued at $53,638,015 in the last ninety days. Company insiders own 11.03% of the company’s stock.

A number of institutional investors have recently made changes to their positions in RNG. Penserra Capital Management LLC bought a new stake in shares of RingCentral in the first quarter valued at approximately $36,000. Great West Life Assurance Co. Can boosted its position in shares of RingCentral by 15.7% in the first quarter. Great West Life Assurance Co. Can now owns 9,345 shares of the software maker’s stock valued at $1,004,000 after acquiring an additional 1,268 shares during the period. Cambridge Investment Research Advisors Inc. bought a new stake in shares of RingCentral in the first quarter valued at approximately $290,000. US Bancorp DE boosted its position in shares of RingCentral by 18.3% in the first quarter. US Bancorp DE now owns 197,660 shares of the software maker’s stock valued at $21,308,000 after acquiring an additional 30,538 shares during the period. Finally, Spark Investment Management LLC boosted its position in shares of RingCentral by 44.1% in the first quarter. Spark Investment Management LLC now owns 182,140 shares of the software maker’s stock valued at $19,634,000 after acquiring an additional 55,740 shares during the period. 81.57% of the stock is owned by hedge funds and other institutional investors.

The company has a debt-to-equity ratio of 1.15, a current ratio of 3.55 and a quick ratio of 3.55. The stock has a market cap of $9.71 billion, a price-to-earnings ratio of -2,951.25 and a beta of 0.95.

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RingCentral Company Profile (NYSE:RNG)

RingCentral, Inc provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The company's products include RingCentral Office, provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax through smartphones, tablets, PCs, and desk phones; RingCentral Professional, a cloud based virtual telephone service for professionals, as well as provides inbound call answering and management services, and includes inbound local, long-distance, and toll-free minutes; and RingCentral Fax that provides online fax capabilities that allow businesses to send and receive fax documents without a fax machine.

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