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Why Invest In RingCentral Inc. (RNG) Stock?

RingCentral Inc. (NYSE:RNG) has a beta value of 0.85 and has seen 1.32 million shares traded in the last trading session. The company, currently valued at $3.47B, closed the last trade at $37.97 per share which meant it lost -$0.14 on the day or -0.37% during that session. The RNG stock price is -371.85% off its 52-week high price of $179.16 and 26.26% above the 52-week low of $28.00. If we look at the company’s 10-day average daily trading volume, we find that it stood at 1.15 million shares traded. The 3-month trading volume is 1.98 million shares.

The consensus among analysts is that RingCentral Inc. (RNG) is an Overweight stock at the moment, with a recommendation rating of 2.10. 0 analysts rate the stock as a Sell, while 3 rate it as Overweight. 8 out of 29 have rated it as a Hold, with 18 advising it as a Buy. 0 have rated the stock as Underweight. The expected earnings per share for the stock is $0.5.

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RingCentral Inc. (NYSE:RNG) trade information

Sporting -0.37% in the red in last session, the stock has traded in the green over the last five days, with the highest price hit on Tuesday, 01/24/23 when the RNG stock price touched $37.97 or saw a rise of 3.34%. Year-to-date, RingCentral Inc. shares have moved 7.26%, while the 5-day performance has seen it change 4.03%. Over the past 30 days, the shares of RingCentral Inc. (NYSE:RNG) have changed 7.35%. Short interest in the company has seen 6.49 million shares shorted with days to cover at 3.44.

Wall Street analysts have a consensus price target for the stock at $51.67, which means that the shares’ value could jump 26.51% from current levels. The projected low price target is $37.00 while the price target rests at a high of $75.00. In that case, then, we find that the current price level is -97.52% off the targeted high while a plunge would see the stock lose 2.55% from current levels.

RingCentral Inc. (RNG) estimates and forecasts

Figures show that RingCentral Inc. shares have outperformed across the wider relevant industry. The company’s shares have lost -29.93% over the past 6 months, with this year growth rate of 47.76%, compared to 3.60% for the industry. Other than that, the company has, however, increased its growth outlook for the 2023 fiscal year revenue. Growth estimates for the current quarter are 38.90% and 51.30% for the next quarter. Revenue growth from the last financial year stood is estimated to be 25.60%.

26 analysts offering their estimates for the company have set an average revenue estimate of $502.69 million for the current quarter. 26 have an estimated revenue figure of $544.97 million for the next quarter concluding in Dec 2022. Year-ago sales stood $393.42 million and $448.5 million respectively for this quarter and the next, and analysts expect sales will grow by 27.80% for the current quarter and 21.50% for the next.

If we evaluate the company’s growth over the last 5-year and for the next 5-year period, we find that annual earnings growth was 36.42% over the past 5 years. Earnings growth for 2023 is a modest -338.20% while over the next 5 years, the company’s earnings are expected to increase by 35.40%.

RNG Dividends

RingCentral Inc. is expected to release its next earnings report between February 20 and February 24 this year, and investors are excited at the prospect of better dividends despite the company’s debt issue.

RingCentral Inc. (NYSE:RNG)’s Major holders

Insiders own 1.59% of the company shares, while shares held by institutions stand at 89.26% with a share float percentage of 90.71%. Investors are also buoyed by the number of investors in a company, with RingCentral Inc. having a total of 573 institutions that hold shares in the company. The top two institutional holders are Capital World Investors with over 10.46 million shares worth more than $546.72 million. As of Jun 29, 2022, Capital World Investors held 12.26% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the holding of over 8.51 million shares as of Jun 29, 2022. The firm’s total holdings are worth over $444.57 million and represent 9.97% of shares outstanding.

Also the top two Mutual Funds that are holding company’s shares are Growth Fund Of America Inc and American Funds Insurance Ser-Growth Fund. As of Sep 29, 2022, the former fund manager holds about 5.97% shares in the company for having 5.1 million shares of worth $203.61 million while later fund manager owns 2.94 million shares of worth $117.42 million as of Sep 29, 2022, which makes it owner of about 3.44% of company’s outstanding stock.

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