RingCentral SVP John Marlow sells $1.66 million in stock

Published 25/02/2025, 01:02
RingCentral SVP John Marlow sells $1.66 million in stock

BELMONT, CA—John Marlow, Senior Vice President, Chief Administrative Officer, and General Counsel at RingCentral, Inc. (NYSE:RNG), recently sold a significant amount of the company’s stock, according to a recent SEC filing. The transaction comes as InvestingPro data shows the stock trading near its 52-week low of $26.98, with shares down over 14% in the past week. The transactions, which occurred on February 21 and February 24, 2025, involved the sale of shares valued at approximately $1.66 million.

The sales were executed as part of a pre-established trading plan under Rule 10b5-1, which Marlow adopted in March 2024. On February 21, Marlow sold 22,979 shares at prices ranging from $28.793 to $29.50. The following week, on February 24, he sold an additional 35,089 shares, with prices ranging from $28.227 to $28.898. Despite these insider sales, InvestingPro analysis indicates the stock is currently undervalued, with management actively pursuing share buybacks.

These transactions followed a series of acquisitions on February 20, where Marlow acquired 3,480 restricted stock units and 41,721 performance-based restricted stock units, both at no cost. These acquisitions were part of RingCentral’s Key Employee Equity Bonus Plan and were tied to performance goals.

After these transactions, Marlow retains direct ownership of 313,510 shares of RingCentral stock. Additionally, he holds shares indirectly through family trusts, with 12,080 shares in the M&M Family 2020 Irrevocable Trust and 12,550 shares in trusts for his children.

In other recent news, RingCentral reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.98 and revenue rising 8% year-over-year to $615 million. Despite this, the company’s guidance for the first quarter of 2025 disappointed investors, with projected revenue and adjusted EPS falling short of consensus estimates. Analysts from Needham, Mizuho (NYSE:MFG), Evercore ISI, and Goldman Sachs have all adjusted their price targets for RingCentral, reflecting cautious optimism about the company’s future performance amid a challenging market environment.

Needham maintained a Buy rating but reduced its price target to $36, citing concerns over RingCentral’s guidance for 2025. Mizuho, retaining a Neutral rating, lowered its target to $32, noting challenges in revenue stability despite positive developments in new products. Evercore ISI also adjusted its price target to $35, maintaining an In Line rating and expressing skepticism about RingCentral’s long-term value in a competitive market. Similarly, Goldman Sachs reduced its price target to $36 while keeping a Neutral rating, pointing to concerns about subscription revenue guidance.

RingCentral’s management remains focused on new product development, with emerging offerings like RingCX contributing to annual recurring revenue. The company achieved GAAP operating profitability for the first time in 2024 and is targeting further operating margin expansion in fiscal year 2025. Additionally, RingCentral announced leadership changes, promoting Kira Makagon to President and Chief Operating Officer.

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