RingCentral, Inc. (NYSE:RNG) Sees 22.8% Decrease in Short Interest

RingCentral, Inc. (NYSE:RNG) experienced a notable drop in short interest throughout December. By December 15th, the total short interest had decreased to 4,800,000 shares, which is a reduction of 22.8% compared to the 6,220,000 shares reported on November 30th. Given the average daily trading volume of 1,310,000 shares, the current days-to-cover ratio stands at 3.7 days, indicating that about 6.1% of the company's shares are currently sold short.

Insider Transactions at RingCentral

In related news, Chief Financial Officer Vaibhav Agarwal sold 1,985 shares of the company’s stock on October 1st, generating approximately $62,329 at an average price of $31.40 per share. After this transaction, Agarwal retains 135,560 shares valued at around $4.25 million, marking a decrease of 1.44% in their ownership. This transaction was officially recorded in a filing with the Securities & Exchange Commission.

Furthermore, CEO Vladimir Shmunis disposed of 66,451 shares on November 21st, with the shares changing hands at an average price of $34.96, totaling $2,323,126.96. Following this sale, Shmunis holds 479,468 shares, valued near $16.76 million, representing a 12.17% reduction in their stake. In the last three months, insiders have sold a total of 117,173 shares worth about $4.18 million, with insiders collectively owning 6.97% of the company’s stock.

Institutional Trading of RingCentral

Recent trading activities by various hedge funds indicate shifting positions in RingCentral. Victory Capital Management Inc. increased its stake in RingCentral by 35.0% in the second quarter, owning 116,300 shares valued at $3.28 million after acquiring an additional 30,138 shares. Another investment firm, Connor Clark & Lunn Investment Management Ltd., raised its shares by 65.9% in the third quarter to own a total of 381,178 shares valued at $12.06 million, thanks to the purchase of 151,433 additional shares.

Olympiad Research LP entered a new investment in RingCentral during the third quarter, acquiring approximately $483,000 worth of shares. Scientech Research LLC also purchased a new position during the second quarter worth about $957,000. In the same manner, AQR Capital Management LLC raised its holdings by 2.4% during the second quarter and now owns 881,109 shares valued at $24.71 million. Institutional investors now own 98.61% of RingCentral stock.

Current Stock Performance

As of the latest trading session, RingCentral's stock opened at $36.11. The stock has recorded a twelve-month low of $26.98 and a high of $42.19. The company holds a market capitalization of approximately $3.27 billion, with a P/E ratio of -34.07, a PEG ratio of 2.48, and a beta of 0.99. The 50-day moving average price is marked at $37.20, while the 200-day moving average is at $33.25.

On November 7th, RingCentral reported its quarterly earnings, disclosing an earnings per share (EPS) of $0.24, surpassing the market consensus estimate of $0.14 by $0.10. Even with a negative net margin of 4.17% and a negative return on equity of 2.55%, the firm reported revenues of $608.77 million, outpacing analysts' expectations of $601.91 million. Analysts predict the company will post an EPS of 0.84 for the current fiscal year.

Analysts’ Ratings and Review

Analysts have recently made various comments regarding RingCentral stock. Morgan Stanley increased their price target for the company from $38.00 to $40.00 while maintaining an "equal weight" rating. Wedbush also raised their target from $36.00 to $41.00 and kept a "neutral" rating. StockNews.com escalated their rating from a "buy" to a "strong-buy" on November 11th.

Robert W. Baird similarly raised their target price from $36.00 to $38.00, retaining a "neutral" outlook. Conversely, Raymond James revised their estimated target down from $52.00 to $50.00, but maintained a "strong-buy" recommendation. In summary, eight analysts have rated the stock as a hold, five as a buy, and two as a strong buy, giving the stock an averaged rating of "Moderate Buy" with a target price of $42.00.

About RingCentral, Inc.

Company Overview

RingCentral, Inc., along with its subsidiaries, offers cloud-based solutions for communications, video meetings, collaboration, and contact center services globally. Their product lineup includes the RingCentral Message Video Phone that ensures a unified communication experience across various modes like HD voice, video, SMS, messaging, collaboration, conferencing, online meetings, and fax. Additionally, the company provides RingCentral Contact Center, an AI-driven solution offering omnichannel and workforce engagement tools integrated with RingCentral MVP, and RingCX, an AI-enhanced contact center delivering an omnichannel experience.

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