RingCentral Takes Off Despite Analyst Downgrade

RingCentral rose 2.7% during the afternoon session to $37.38 per share. As reported by Barrons: "Competition is intensifying in the market for cloud-based communications tools. MKM Partners analyst Catherine Trebnick thinks you should get out of the way. Trebnick on Monday cut her ratings on both Zoom Video Communications ( ticker: ZM ) and RingCentral ( RNG ) to Neutral from Buy." You can read more about it here. For those of you thinking about investing in the stock, here is a brief look at the company's fundamentals.

Here's an overview of RingCentral's recent cash flows and operating margins:

Date Reported Cash Flow from Operations ($ MM) Capital expenditures ($ MM) Free Cash Flow ($ MM) YoY Growth (%)
2021-12-31 152 -385 -233 -62.94
2020-12-31 -35 -108 -143 -108.56
2019-12-31 65 -133 -69 n/a
Date Reported Revenue ($ MM) Cost of Revenue ($ MM) Gross Margins (%) YoY Growth (%)
2021-12-31 1,595 448 71.88 -1.07
2020-12-31 1,184 324 72.66 -2.35
2019-12-31 903 231 74.41 n/a
Date Reported Total Revenue ($ MM) Operating Expenses ($ MM) Operating Margins (%) YoY Growth (%)
2021-12-31 1,595 1,448 -18.92 -97.7
2020-12-31 1,184 973 -9.57 -89.13
2019-12-31 903 717 -5.06 n/a

At today's price of $37.38 per share, RingCentral is -28.85% away from its target price of $52.54, and on average, analysts give the stock a rating of buy. 5.7% of the company's shares are linked to short positions, and 100.7% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.