RingCentral (NYSE:RNG) Issues Q3 Earnings Guidance

RingCentral (NYSE:RNG) issued an update on its third quarter earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of $0.92 to $0.93 for the period, compared to the consensus estimate of $0.91. The company issued revenue guidance of $600.5 million to $603.5 million, compared to the consensus revenue estimate of $601.17 million. RingCentral also updated its FY 2024 guidance to 3.620-3.670 EPS.

RingCentral Stock Performance

Shares of NYSE:RNG traded up $1.81 during trading hours on Friday, reaching $35.26. The stock had a trading volume of 3,145,964 shares, compared to its average volume of 1,131,608. RingCentral has a 1 year low of $25.08 and a 1 year high of $39.86. The firm’s 50 day moving average is $31.30 and its 200-day moving average is $32.66. The stock has a market capitalization of $3.25 billion, a price-to-earnings ratio of -23.66, a P/E/G ratio of 2.87 and a beta of 1.03.

RingCentral (NYSE:RNG) last announced its quarterly earnings data on Tuesday, May 7th. The software maker reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.05. The firm had revenue of $584.21 million during the quarter, compared to analysts’ expectations of $577.81 million. Analysts forecast that RingCentral will post 0.54 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on RNG shares. Mizuho increased their price objective on shares of RingCentral from $36.00 to $38.00 and gave the company a buy rating in a research report on Wednesday, May 8th. Rosenblatt Securities raised shares of RingCentral from a neutral rating to a buy rating and increased their target price for the company from $35.00 to $45.00 in a research report on Friday. Piper Sandler dropped their target price on shares of RingCentral from $32.00 to $31.00 and set a neutral rating on the stock in a research report on Wednesday, July 10th. Robert W. Baird increased their target price on shares of RingCentral from $32.00 to $35.00 and gave the company a neutral rating in a research report on Thursday, May 9th. Finally, UBS Group increased their target price on shares of RingCentral from $37.00 to $40.00 and gave the company a neutral rating in a research report on Wednesday, May 8th. Nine research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, RingCentral has a consensus rating of Moderate Buy and an average price target of $40.28.

Insider Activity

In related news, CFO Vaibhav Agarwal sold 11,406 shares of the business’s stock in a transaction dated Tuesday, May 21st. The shares were sold at an average price of $36.01, for a total transaction of $410,730.06. Following the sale, the chief financial officer now owns 158,784 shares of the company’s stock, valued at $5,717,811.84. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In related news, CFO Vaibhav Agarwal sold 11,406 shares of the business’s stock in a transaction dated Tuesday, May 21st. The shares were sold at an average price of $36.01, for a total transaction of $410,730.06. Following the sale, the chief financial officer now owns 158,784 shares of the company’s stock, valued at $5,717,811.84. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Sonalee Elizabeth Parekh sold 8,478 shares of the business’s stock in a transaction dated Tuesday, May 28th. The stock was sold at an average price of $34.85, for a total transaction of $295,458.30. Following the sale, the chief financial officer now directly owns 388,919 shares in the company, valued at approximately $13,553,827.15. The disclosure for this sale can be found here. Insiders have sold a total of 21,869 shares of company stock valued at $762,165 over the last quarter. Corporate insiders own 6.76% of the company’s stock.

About RingCentral

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.