Shares of AI–powered cloud communications firm RingCentral (RNG.N) up 4.5% before the bell at $28.59 as co poised to join S&amp;P SmallCap 600 index (.SPCY) on Thurs RNG to replace Hillenbrand Inc (HI.N) in SPCY prior to market open on Feb 12, S&amp;P Dow Jones Indices said late Mon Industrial equipment maker HI being acquired by Lone Star Funds for $2.3 bln
Stephens analyst Melissa Roberts said she expects passive funds will need to buy 10.5 mln RNG shares implying nearly 8 days of buying demand
Belmont, California-based RNG has ~86 mln shares outstanding for ~$2.3 bln market cap
Through Mon, shares down 5% YTD and off roughly 20% over the past 12 months
6 of 17 analysts rate shares “strong buy” or “buy”, 11 rate “hold”; median PT $32, per LSEG RNG slated to report Q4 results on Feb 19 after market close (Lance Tupper is a Reuters market analyst. The views expressed are his own)

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Shares of RingCentralrose 4.5% to $28.59 ahead of its inclusion in the S&P SmallCap 600 index, replacing Hillenbrand Inc. on February 12. Analysts expect passive funds to buy 10.5 million shares, indicating strong demand. Despite a 5% decline YTD and a 20% drop over the past year, 6 out of 17 analysts rate the stock as a "strong buy" or "buy," with a median price target of $32. RingCentral is set to report Q4 results on February 19.

Reuters

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BUZZ-RingCentral rises ahead of joining S&P SmallCap index