RingCentral, Inc. (RNG): More Irrationality?

The stock of RingCentral, Inc. (NYSE:RNG) has been Reiterated to Buy by Needham in its latest research note that was published on July 30. RNG has given a price target of $150 by Needham, with other Wall Street analysts also giving their reports regarding the stock. BofA/Merrill analysts again handed out a Buy rating to RNG stock but they lifted target price for the shares in a flash note to investors on July 30. The price target has been raised from $135 to $150.

RingCentral, Inc., which has current market capitalization of above $11 Billion, published its last quarter earnings on June 30, 2019.

RNG surged by $6.86 during the normal trading session on Thursday and reaching a high of $130.98 during the day while it closed the day at $127.36. The RingCentral, stock had a low trading volume of 1.10 million shares on that day, which is low compared to the average daily volume of 748.97M shares. RNG has also lost 9.36% of its value over the past 7 days. However, the stock has surged by 7.79% in the 3 months of the year. Over the past six months meanwhile, it has gained 19.55% while it has added 54.49% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -12.99% from its 3 months high price. However, taking another look at RNG will indicate that it is trading +15.43% away from its 90-day low. Looking at the bigger picture, the RingCentral, Inc. stock has dropped by -12.99% from its 52-week high while it has surged by +97.73% from its 52-week low price.

On September 11, 2019 Marlow John H, SVP, CAO & General Counsel sold 32002 shares of the company. The average price for that transaction was $124.89 per share, which meant that Marlow John H earned $3996730 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with CEO & Chairman, 10% Owner, Shmunis Vladimir selling 62500 shares of this stock on September 10, 2019. The average selling price for the stock was $131.46 per share, with the sold stock accruing $8216250. Following this transaction, the CEO & Chairman, 10% Owner Shmunis Vladimir now holds 167309 shares of the company, which is worth around $20766393.

RingCentral, has around 568 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $246 Billion. The RingCentral, stock is bringing in revenue of over 12 months, which is roughly 54 Billion. Despite all that, RingCentral, Inc. is seeing things progressing very much as their y-o-y quarterly revenue surged by 40.89%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 40.54%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 20.35%. Over the past 20 days, RingCentral,’s Stochastic %K stood at 10.03% while its Stochastic %D was revealed to be 11.4%.