Shares of cloud communication services provider RingCentral (NYSE:RNG) are plummeting today after the company announced major leadership changes.
After a mutual agreement, Tarek Robbiati agreed to depart from RingCentral as its CEO and resign from the company’s Board. This development has paved the way for RingCentral’s Founder and Executive Chairman of the Board, Vlad Shmunis, to return as its CEO.
Shmunis oversaw RingCentral’s growth from its inception to the crossing of more than $2.2 billion in revenue. RNG’s lead Independent Director, Rob Theis, noted that the company’s Board believes, “It is best to have one leader with oversight for all aspects of the organization.”
Additionally, RingCentral reaffirmed its financial outlook for the fourth quarter and Fiscal Year 2023. For the full year, RNG expects EPS to be $3.19 to $3.20 on a revenue range of $2.198 billion to $2.205 billion. Last week, the company’s shares had run up after its CFO skipped the Barclays Global Technology conference, citing illness.
Is RNG a Good Stock to Buy?
Overall, the Street has a Moderate Buy consensus rating on RingCentral. Following a nearly 19% jump in the company’s share price over the past month, the average RNG price target of $39.29 implies a further 15.19% potential upside in the stock.
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