RingCentral (NYSE:RNG) Releases Quarterly Earnings Results, Misses Estimates By $0.73 EPS

RingCentral (NYSE:RNG) released its earnings results on Thursday. The software maker reported $0.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.96 by ($0.73), Zacks reports. RingCentral had a negative return on equity of 2.55% and a negative net margin of 4.17%. RingCentral updated its FY 2025 guidance to 4.130-4.270 EPS and its Q1 2025 guidance to 0.930-0.970 EPS.

RingCentral Stock Down 3.0 %

Shares of RNG traded down $0.96 during trading on Thursday, reaching $30.78. The company’s stock had a trading volume of 2,385,631 shares, compared to its average volume of 1,130,021. The company has a market cap of $2.78 billion, a price-to-earnings ratio of -29.04, a P/E/G ratio of 1.39 and a beta of 1.01. The company has a fifty day moving average of $35.24 and a two-hundred day moving average of $34.32. RingCentral has a twelve month low of $26.98 and a twelve month high of $42.19.

Analysts Set New Price Targets

A number of research firms have issued reports on RNG. Barclays downgraded RingCentral from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $45.00 to $37.00 in a research report on Monday, January 27th. Needham & Company LLC restated a “buy” rating and set a $42.00 target price on shares of RingCentral in a report on Monday, November 11th. Robert W. Baird upped their price target on shares of RingCentral from $36.00 to $38.00 and gave the stock a “neutral” rating in a research report on Monday, November 11th. Rosenblatt Securities reissued a “buy” rating and issued a $45.00 price objective on shares of RingCentral in a research report on Friday, November 8th. Finally, Mizuho decreased their target price on RingCentral from $42.00 to $36.00 and set a “neutral” rating for the company in a research report on Monday, February 10th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $40.60.

Insider Transactions at RingCentral

In other news, SVP John H. Marlow sold 8,720 shares of RingCentral stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $42.05, for a total value of $366,676.00. Following the completion of the transaction, the senior vice president now owns 334,869 shares in the company, valued at approximately $14,081,241.45. This trade represents a 2.54 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert I. Theis sold 1,457 shares of the stock in a transaction on Wednesday, December 4th. The stock was sold at an average price of $37.79, for a total transaction of $55,060.03. Following the sale, the director now directly owns 28,690 shares in the company, valued at $1,084,195.10. This trade represents a 4.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 13,091 shares of company stock valued at $542,958. 6.97% of the stock is currently owned by corporate insiders.

RingCentral Company Profile

RingCentral, Inc, together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company’s products include RingCentral Message Video Phone that provides a unified experience for communication and collaboration across multiple modes, including HD voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions with integrated RingCentral MVP; and RingCX, an AI-powered contact center that a native delivers omnichannel experience.