RingCentral | RNG | Long at $35.17RingCentral NYSE:RNG analysis:
The Good:
Revenues grew every from 2017 (~$500 million) to Q3 of 2024 ($2.3 billion) and recently adjusted to a "beat" for 2024 as a whole.
Gross profit in Q3 of 2024 was $1.6 billion and has increased every year since 2019
Price-to-sales: 1.3x (industry average 5.7x)
Rising free cash flow
EBITDA positive at $190 million in Q3 of 2024
From a technical analysis perspective, my historical simple moving average has converged with the price which often leads to a future share price increase. However, it could trade sideways for a while before breaking through.
The Bad:
Competition, especially Microsoft Teams and other similar products in the market reducing or eliminating growth (although, this hasn't happened just yet).
Recent insider selling
Debt: $1.58 billion
At $35.17, NYSE:RNG is in a personal buy zone. If there is a dip in the price, I anticipate the price gap in the low $30's to be filled or in a dire situation, a drop to the mid-$20's.
Targets:
$40.00
$45.00
$50.00
$200.00 (if momentum kicks for a long-term outlook)
