The stock of RingCentral Inc. (NYSE: RNG) has increased by 0.06 when compared to last closing price of 32.37. Despite this, the company has experienced a -1.10% fall in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-07 that RingCentral’s recent results show signs of stabilization and positive growth, with subscription revenue and total revenue both increasing by 9%. The company’s conservative guidance for FY24 subscription revenue growth may be beatable, as historical trends suggest that RNG has consistently exceeded its revenue guidance. The upcoming catalyst for growth and positive sentiment is the success of RNG’s partnership strategy, along with the introduction of new products that are expected to contribute to future growth.
Is It Worth Investing in RingCentral Inc. (NYSE: RNG) Right Now?
The 36-month beta value for RNG is at 0.92. Analysts have varying views on the stock, with 5 analysts rating it as a “buy,” 7 rating it as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for RNG is 79.94M, and currently, shorts hold a 4.81% of that float. The average trading volume for RNG on April 12, 2024 was 1.20M shares.
RNG’s Market Performance
RNG’s stock has seen a -1.10% decrease for the week, with a -10.87% drop in the past month and a -2.67% fall in the past quarter. The volatility ratio for the week is 2.75%, and the volatility levels for the past 30 days are at 2.90% for RingCentral Inc. The simple moving average for the last 20 days is -5.91% for RNG stock, with a simple moving average of 0.32% for the last 200 days.
Analysts’ Opinion of RNG
Many brokerage firms have already submitted their reports for RNG stocks, with Wells Fargo repeating the rating for RNG by listing it as a “Equal Weight.” The predicted price for RNG in the upcoming period, according to Wells Fargo is $36 based on the research report published on December 20, 2023 of the previous year 2023.
Jefferies, on the other hand, stated in their research note that they expect to see RNG reach a price target of $35, previously predicting the price at $40. The rating they have provided for RNG stocks is “Hold” according to the report published on December 12th, 2023.
Rosenblatt gave a rating of “Neutral” to RNG, setting the target price at $35 in the report published on October 23rd of the previous year.
RNG Trading at -3.60% from the 50-Day Moving Average
After a stumble in the market that brought RNG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -25.16% of loss for the given period.
Volatility was left at 2.90%, however, over the last 30 days, the volatility rate increased by 2.75%, as shares sank -10.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.84% lower at present.
During the last 5 trading sessions, RNG fell by -1.10%, which changed the moving average for the period of 200-days by -0.03% in comparison to the 20-day moving average, which settled at $34.23. In addition, RingCentral Inc. saw -4.59% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RNG starting from Agarwal Vaibhav, who sale 1,984 shares at the price of $34.55 back on Apr 01 ’24. After this action, Agarwal Vaibhav now owns 114,656 shares of RingCentral Inc., valued at $68,539 using the latest closing price.
Agarwal Vaibhav, the DEPUTY CHIEF FINANCIAL OFFICER of RingCentral Inc., sale 14,113 shares at $34.84 during a trade that took place back on Mar 15 ’24, which means that Agarwal Vaibhav is holding 116,640 shares at $491,655 based on the most recent closing price.
Stock Fundamentals for RNG
Current profitability levels for the company are sitting at:
- -0.09 for the present operating margin
- 0.7 for the gross margin
The net margin for RingCentral Inc. stands at -0.08. The total capital return value is set at -0.15.
Based on RingCentral Inc. (RNG), the company’s capital structure generated 1.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.23. The debt to equity ratio resting at -3.51. The interest coverage ratio of the stock is -64.74.
Currently, EBITDA for the company is 75.97 million with net debt to EBITDA at 41.88. When we switch over and look at the enterprise to sales, we see a ratio of 2.07. The receivables turnover for the company is 6.04for trailing twelve months and the total asset turnover is 1.13. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.05.
Conclusion
In conclusion, RingCentral Inc. (RNG) has had a bad performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
