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 6.21% to 10.77 million shares with purchase of 0.63 million shares. This fresh investment now brings its stake to 13.98% valued currently at $3.12 billion. In addition, The Vanguard Group, Inc. raised its holdings by 45393.0 to 7.05 million shares. And Jennison Associates LLC has lifted its position by 88.77% or 2.32 million shares – to 4.94 million shares.
With over 1.07 million RingCentral Inc. (RNG) shares trading Tuesday and a closing price of $310.20 on the day, the dollar volume was approximately $332.35 million. The shares have shown a positive weekly performance of 9.21% and its price on 09/01/20 gained nearly 6.68%. Currently, there are 88.25M common shares owned by the public and among those 77.29M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 26 analysts who have offered their price forecasts for RNG have a consensus price objective of $341.54. The analysts have set the share’s price value over the next 12 months at a high of $375.00 and a low of $280.00 should the stock experience a downside. Incidentally, analysts’ outlook for the RingCentral Inc. stock is 1.60 for the next 12 months. The average price target is 9.18% above its last price level and an upside to the estimated low will see the stock lose -10.79% over that period. But an upside of 17.28% will see the stock hit the forecast high price target while mean target price for the stock is $342.50.
Insiders at the company have transacted a total of 671 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 88 of these insider trades were purchases, accounting for 707,171 shares. Insider sales of the common stock occurred on 583 occasions, with total insider shares sold totaling 707,953 shares.
The top 3 mutual fund holders in RingCentral Inc. are American Funds Growth Fund of Ame, American Funds Small Cap World Fu, and Vanguard Total Stock Market Index. American Funds Growth Fund of Ame owns 4.91 million shares of the company’s stock, all valued at over $1.42 billion. The company bought an additional 0.5 million shares recently to bring their total holdings to about 6.37% of the shares outstanding. American Funds Small Cap World Fu sold -0.22 million shares to see its total holdings shrink to 4.34 million shares valued at over $1.26 billion and representing 5.63% of the shares outstanding. Vanguard Total Stock Market Index sold 7322.0 shares to bring its total holdings to over 2.19 million shares at a value of $634.65 million. Vanguard Total Stock Market Index now owns shares totaling to 2.84% of the shares outstanding.
Shares of RingCentral Inc. (NYSE: RNG) opened at $296.56, up $5.79 from a prior closing price of $290.77. However, the script later closed the day at $310.20, up 6.68%. The company’s stock has a 5-day price change of 9.21% and 14.49% over the past three months. RNG shares are trading 83.91% year to date (YTD), with the 12-month market performance up to 120.33% higher. It has a 12-month low price of $120.03 and touched a high of $306.46 over the same period. Currently, 1.07 million shares have been traded, compared to an average intraday trading volume of 1.06 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 8.34%, 9.97%, and 34.22% respectively.
Institutional ownership of RingCentral Inc. (NYSE: RNG) shares accounts for 98.43% of the company’s 88.25M shares outstanding. Mutual fund holders own 63.12%, while other institutional holders and individual stakeholders account for 8.31% and 38.21% respectively.
It has a market capitalization of $26.88B and a beta (3y monthly) value of 0.47. The earnings-per-share (ttm) stands at -$1.14. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.03% over the week and 4.33% over the month.
Analysts forecast that RingCentral Inc. (RNG) will achieve an EPS of $0.24 for the current quarter, $0.26 for the next quarter and $1.14 for 2021. The lowest estimate earnings-per-share for the quarter is $0.23 while analysts give the company a high EPS estimate of $0.25. Comparatively, EPS for the current quarter was $0.22 a year ago. Earnings per share for the fiscal year are expected to decrease by -95.60%, and 22.28% over the next financial year. EPS should grow at an annualized rate of 30.00% over the next five years, compared to 2.30% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 26 brokerage firm advisors rate RingCentral Inc. (RNG) as a “Strong Buy” at a consensus score of 1.60. Specifically, 23 Wall Street analysts polled rate the stock as a buy, while 2 of the 26 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. Wolfe Research stated their Outperform rating for the stock in a research note on July 24, 2020, with the firm’s price target at. KeyBanc Capital Markets coverage for the RingCentral Inc. (RNG) stock in a research note released on June 01, 2020 offered a Overweight rating with a price target of $315. BTIG Research was of a view on April 16, 2020 that the stock is Buy, while Evercore ISI gave the stock Outperform rating on April 08, 2020, issuing a price target of $240. Dougherty & Company on their part issued Buy rating on February 07, 2020.