Zacks Research Downgrades Ringcentral (NYSE:RNG) to Strong Sell

Ringcentral (NYSE:RNG) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday,Zacks.com reports.

A number of other equities analysts have also commented on RNG. Weiss Ratings restated a “sell (d+)” rating on shares of Ringcentral in a research note on Monday, December 29th. Needham & Company LLC reissued a “buy” rating and issued a $36.00 target price on shares of Ringcentral in a report on Tuesday, November 4th. Morgan Stanley lowered their price objective on shares of Ringcentral from $31.00 to $30.00 and set an “equal weight” rating for the company in a research report on Thursday, January 15th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $32.00 price target on shares of Ringcentral in a research note on Tuesday, November 4th. Four analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Ringcentral has a consensus rating of “Hold” and an average price target of $31.46.

Ringcentral Stock Performance

NYSE RNG traded down $1.06 during trading on Tuesday, hitting $25.37. The stock had a trading volume of 2,466,674 shares, compared to its average volume of 1,531,990. Ringcentral has a 12 month low of $20.58 and a 12 month high of $35.25. The company’s 50-day moving average price is $28.43 and its two-hundred day moving average price is $28.62. The company has a market capitalization of $2.20 billion, a PE ratio of 181.24, a P/E/G ratio of 1.03 and a beta of 1.23.

Ringcentral (NYSE:RNG) last released its earnings results on Monday, November 3rd. The software maker reported $1.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.05. Ringcentral had a negative return on equity of 22.38% and a net margin of 0.53%.The business had revenue of $638.66 million for the quarter, compared to analyst estimates of $635.39 million. During the same quarter in the prior year, the company posted $0.95 earnings per share. Ringcentral’s revenue was up 4.9% on a year-over-year basis. As a group, equities analysts anticipate that Ringcentral will post 1.29 earnings per share for the current fiscal year.

Insider Activity at Ringcentral

In other news, CAO Tarun Arora sold 3,888 shares of the company’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $28.70, for a total value of $111,585.60. Following the completion of the sale, the chief accounting officer directly owned 93,412 shares in the company, valued at $2,680,924.40. This represents a 4.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Vladimir Shmunis sold 27,018 shares of Ringcentral stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $27.68, for a total value of $747,858.24. Following the transaction, the chief executive officer owned 262,240 shares in the company, valued at approximately $7,258,803.20. The trade was a 9.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 115,838 shares of company stock worth $3,164,064 in the last quarter. 7.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Ringcentral by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 11,823,636 shares of the software maker’s stock valued at $335,082,000 after purchasing an additional 129,444 shares in the last quarter. Capital World Investors raised its holdings in Ringcentral by 20.9% in the 3rd quarter. Capital World Investors now owns 11,735,991 shares of the software maker’s stock valued at $332,598,000 after acquiring an additional 2,031,861 shares during the last quarter. Alyeska Investment Group L.P. purchased a new position in Ringcentral during the third quarter worth about $53,365,000. Marshall Wace LLP boosted its position in shares of Ringcentral by 4.4% in the third quarter. Marshall Wace LLP now owns 1,794,978 shares of the software maker’s stock worth $50,870,000 after acquiring an additional 75,709 shares during the last quarter. Finally, AQR Capital Management LLC grew its stake in shares of Ringcentral by 27.6% during the 2nd quarter. AQR Capital Management LLC now owns 1,626,454 shares of the software maker’s stock valued at $45,728,000 after buying an additional 351,347 shares during the period. Hedge funds and other institutional investors own 98.61% of the company’s stock.

Key Ringcentral News

Here are the key news stories impacting Ringcentral this week:

• Positive Sentiment: RingCentral was named a top provider in Metrigy’s 2025 MetriStar UCaaS report — a validation of its competitive positioning and go-to-market strength that can support longer-term revenue growth expectations. RingCentral Recognized as a Top Provider in Metrigy’s 2025 MetriStar UCaaS Report
• Neutral Sentiment: Analysts’ consensus remains tepid — a recent summary shows an average “Hold” recommendation, indicating no clear upside from analyst coverage alone. Ringcentral, Inc. (NYSE:RNG) Receives Average Recommendation of “Hold” from Analysts
• Neutral Sentiment: Commentary pieces are debating whether multi-year share weakness creates a value opportunity; these articles can attract bargain hunters but are speculative and unlikely to reverse near-term selling without stronger operational signs. Is There Now An Opportunity In RingCentral (RNG) After Multi Year Share Price Slump
• Neutral Sentiment: Market write-ups mentioning RingCentral among “cash-producing” or watchlist stocks present mixed views; these are informational and don’t imply immediate directional pressure. 1 Cash-Producing Stock to Keep an Eye On and 2 Facing Headwinds
• Neutral Sentiment: Press coverage noted the “top provider” recognition but also that the stock reaction was muted, suggesting the positive industry accolade wasn’t large enough to offset negative news flow. RingCentral Flat on “Top Provider” Status
• Negative Sentiment: Zacks Research downgraded RingCentral from “Hold” to “Strong Sell,” a clear near-term negative catalyst that likely pressured the stock as investors reweight estimates and risk. Zacks Research Downgrade
• Negative Sentiment: Broader market write-ups listed RingCentral among several software names that “plummeted” in the session, reflecting either sector-wide momentum selling or idiosyncratic flows hitting cloud/UCaaS stocks. This contributed to the down move. Samsara, Appian, RingCentral, Veeva Systems, and PubMatic Shares Plummet, What You Need To Know

About Ringcentral

RingCentral, Inc is a leading provider of cloud-based business communications and collaboration solutions. The company’s flagship platform delivers unified communications as a service (UCaaS), integrating voice over IP (VoIP) phone systems, video conferencing, team messaging and SMS into a single, cloud-native application. In addition to its UCaaS offering, RingCentral provides contact center as a service (CCaaS) capabilities, enabling organizations to manage customer interactions across voice, email, chat and social channels from a centralized dashboard.

Founded in 1999 and headquartered in Belmont, California, RingCentral went public on the New York Stock Exchange under the ticker RNG in 2013.