Capital Research & Management Co recently announced the acquisition of new stake in RingCentral Inc. (NYSE:RNG). The institutional investor has increased its shareholding in the Technology company by 31.01% to 12.96 million shares with purchase of 3.07 million shares. This fresh investment now brings its stake to 15.09% valued currently at $428.33 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.81 million to 9.63 million shares. And BlackRock Fund Advisors has lifted its position by 10.58% or 0.42 million shares – to 4.35 million shares.
With over 2.08 million RingCentral Inc. (RNG) shares trading Tuesday and a closing price of $31.59 on the day, the dollar volume was approximately $65.71 million. The shares have shown a negative half year performance of -32.24% and its price on 03/14/23 gained nearly 0.41%. Currently, there are 95.67M common shares owned by the public and among those 84.81M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 29 analysts who have offered their price forecasts for RNG have a consensus price objective of $51.31. The analysts have set the share’s price value over the next 12 months at a high of $65.00 and a low of $40.00. The average price target is 38.2% above its recent price level and an upside to the estimated low will see the stock gain 21.02% over that period. But an upside of 51.4% will see the stock hit the forecast high price target while median target price for the stock is $50.00.
Insiders at the company have transacted a total of 139 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 56 of these insider trades were purchases, accounting for 568,094 shares. Insider sales of the common stock occurred on 83 occasions, with total insider shares sold totaling 332,864 shares.
The top 3 mutual fund holders in RingCentral Inc. are American Funds Growth Fund of Ame, American Funds Insurance Series -, and American Funds Small Cap World Fu. American Funds Growth Fund of Ame owns 5.56 million shares of the company’s stock, all valued at over $183.78 million. The company bought an additional 0.47 million shares recently to bring their total holdings to about 6.47% of the shares outstanding. American Funds Insurance Series – bought 0.19 million shares to see its total holdings expand to 3.13 million shares valued at over $103.49 million and representing 3.65% of the shares outstanding. American Funds Small Cap World Fu bought 0.13 million shares to bring its total holdings to over 3.0 million shares at a value of $99.12 million. American Funds Small Cap World Fu now owns shares totaling to 3.49% of the shares outstanding.
Shares of RingCentral Inc. (NYSE: RNG) opened at $32.18, up $0.72 from a prior closing price of $31.46. However, the script later moved the day high at 32.68, up 0.41%. The company’s stock has a 5-day price change of -10.84% and -13.62% over the past three months. RNG shares are trading -10.76% year to date (YTD), with the 12-month market performance down to -69.46% lower. It has a 12-month low price of $28.00 and touched a high of $129.72 over the same period. RNG has an average intraday trading volume of 1.95 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -13.15%, -15.85%, and -26.32% respectively.
Institutional ownership of RingCentral Inc. (NYSE: RNG) shares accounts for 99.70% of the company’s 95.67M shares outstanding. Mutual fund holders own 53.85%, while other institutional holders and individual stakeholders account for 8.17% and 42.36% respectively.
It has a market capitalization of $3.11B and a beta (3y monthly) value of 0.95. The earnings-per-share (ttm) stands at -$9.22. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.47% over the week and 5.52% over the month.
Analysts forecast that RingCentral Inc. (RNG) will achieve an EPS of $0.59 for the current quarter, $0.63 for the next quarter and $2.84 for 2023. The lowest estimate earnings-per-share for the quarter is $0.57 while analysts give the company a high EPS estimate of $0.62. Comparatively, EPS for the current quarter was $0.39 a year ago. Earnings per share for the fiscal year are expected to decrease by -125.10%, and 18.83% over the next financial year. EPS should shrink at an annualized rate of 27.35% over the next five years, compared to 32.81% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 29 brokerage firm advisors rate RingCentral Inc. (RNG) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 17 Wall Street analysts polled rate the stock as a buy, while 9 of the 29 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the RNG, a number of firms have released research notes about the stock. Evercore ISI stated their In-line rating for the stock in a research note on February 16, 2023, with the firm’s price target at $40. MKM Partners coverage for the RingCentral Inc. (RNG) stock in a research note released on January 23, 2023 offered a Neutral rating with a price target of $40. Wedbush on their part issued Neutral rating on December 15, 2022.
