Should You Consider Investing in RingCentral (RNG)?

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Baron Funds, an asset management firm, published its “Baron Asset Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A decline of 0.14% was delivered by the fund’s institutional shares for the third quarter of 2021, while the Russell Midcap Growth Index (the “Index”) declined 0.76%, and the S&P 500 Index gained 0.58%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron Asset Fund, in its Q3 2021 investor letter, mentioned RingCentral, Inc. (NYSE: RNG) and discussed its stance on the firm. RingCentral, Inc. is a Belmont, California-based communications and collaboration solutions provider with a $13.2 billion market capitalization. RNG delivered a -34.68% return since the beginning of the year, while its 12-month returns are down by -16.63%. The stock closed at $247.53 per share on November 17, 2021.

Here is what Baron Asset Fund has to say about RingCentral, Inc. in its Q3 2021 investor letter:

RingCentral, Inc. provides a cloud-based unified communications system that replaces businesses’ legacy on-premises phone systems. Despite reporting results that showed accelerating revenue growth and increased earnings guidance, the company’s shares lagged during the quarter. We believe this was attributable to investor concerns about a possible contraction in its total addressable market and increased competition from Microsoft and Zoom. We believe that RingCentral’s addressable market is large enough to support multiple long-term winners and that the company can continue to rapidly innovate its platform, while sustaining pricing levels and winning significant market share.”

Based on our calculations, RingCentral, Inc. (NYSE: RNG) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. RNG was in 47 hedge fund portfolios at the end of the first half of 2021, compared to 51 funds in the previous quarter. RingCentral, Inc. (NYSE: RNG) delivered a -1.38% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.