Principal Financial Group Inc. Makes New Investment in RingCentral, Inc. $RNG

Principal Financial Group Inc. purchased a new stake in RingCentral, Inc. (NYSE:RNG) during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 368,877 shares of the software maker’s stock, valued at approximately $13,719,000.

Several other institutional investors and hedge funds also recently modified their holdings of the company. Empowered Funds LLC raised its position in RingCentral by 9.0% in the 1st quarter. Empowered Funds LLC now owns 11,417 shares of the software maker’s stock valued at $283,000 after buying an additional 940 shares during the last quarter. Woodline Partners LP boosted its position in RingCentral by 14.8% during the 1st quarter. Woodline Partners LP now owns 159,474 shares of the software maker’s stock worth $3,949,000 after acquiring an additional 20,518 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of RingCentral by 2.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 261,190 shares of the software maker’s stock worth $6,467,000 after acquiring an additional 5,398 shares during the period. Creative Planning bought a new stake in shares of RingCentral during the second quarter worth approximately $274,000. Finally, Invesco Ltd. grew its position in shares of RingCentral by 10.8% in the second quarter. Invesco Ltd. now owns 137,935 shares of the software maker’s stock valued at $3,910,000 after purchasing an additional 13,446 shares during the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting RingCentral

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported Q2 EPS of $1.22, ahead of estimates, and revenue of $657.0 million, also above expectations, signaling solid execution in the quarter. RingCentral Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company lifted Q3 2026 EPS guidance to $1.25-$1.30 versus Wall Street’s $1.14 estimate, and Q3 revenue guidance of $664 million-$670 million slightly topped expectations, reinforcing confidence in near-term growth. RingCentral Announces Second Quarter 2026 Financial Results
• Positive Sentiment: RingCentral also raised full-year 2026 EPS guidance to $4.96-$5.10, well above consensus, which likely supported the stock as investors focused on stronger earnings power. RingCentral Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company announced an expanded partnership with NiCE and a collaboration with OpenAI, adding to the narrative that RingCentral is strengthening its AI and customer-engagement ecosystem. NiCE and RingCentral Expand Strategic Partnership RingCentral and OpenAI Collaborate

RingCentral Price Performance

RNG opened at $38.62 on Friday. RingCentral, Inc. has a fifty-two week low of $23.59 and a fifty-two week high of $49.85. The firm has a market capitalization of $3.24 billion, a PE ratio of 41.08, a P/E/G ratio of 1.11 and a beta of 1.14. The company’s 50-day moving average is $40.27 and its 200 day moving average is $36.70.

RingCentral (NYSE:RNG) last released its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.16 by $0.06. The business had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The company’s quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.06 EPS. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. As a group, analysts expect that RingCentral, Inc. will post 2.78 EPS for the current year.

RingCentral Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Thursday, August 6th. This is an increase from RingCentral’s previous quarterly dividend of $0.07. RingCentral’s dividend payout ratio (DPR) is currently 31.91%.

Insider Activity

In related news, CFO Vaibhav Agarwal sold 7,047 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $46.17, for a total transaction of $325,359.99. Following the transaction, the chief financial officer directly owned 169,282 shares of the company’s stock, valued at approximately $7,815,749.94. This trade represents a 4.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Amy Guggenheim Shenkan sold 1,265 shares of RingCentral stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $40.59, for a total value of $51,346.35. Following the sale, the director directly owned 29,372 shares in the company, valued at approximately $1,192,209.48. The trade was a 4.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 44,498 shares of company stock worth $1,892,586. 7.30% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of RingCentral in a research note on Friday, July 17th. Jefferies Financial Group reissued a “hold” rating and set a $40.00 target price on shares of RingCentral in a report on Saturday, May 9th. Rosenblatt Securities upped their price target on shares of RingCentral from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Morgan Stanley raised their price target on shares of RingCentral from $33.00 to $40.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Finally, Wells Fargo & Company lifted their price target on shares of RingCentral from $32.00 to $43.00 and gave the stock an “equal weight” rating in a report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, RingCentral currently has a consensus rating of “Hold” and an average target price of $43.00.

About RingCentral

RingCentral, Inc is a leading provider of cloud-based business communications and collaboration solutions. The company’s flagship platform delivers unified communications as a service (UCaaS), integrating voice over IP (VoIP) phone systems, video conferencing, team messaging and SMS into a single, cloud-native application. In addition to its UCaaS offering, RingCentral provides contact center as a service (CCaaS) capabilities, enabling organizations to manage customer interactions across voice, email, chat and social channels from a centralized dashboard.

Founded in 1999 and headquartered in Belmont, California, RingCentral went public on the New York Stock Exchange under the ticker RNG in 2013.