Traders Purchase Large Volume of RingCentral Call Options (NYSE:RNG)

RingCentral, Inc. (NYSE:RNG) was the recipient of some unusual options trading on Wednesday. Investors acquired 4,098 call options on the stock. This is an increase of approximately 283% compared to the typical daily volume of 1,070 call options.

RingCentral Stock Performance

Shares of RNG stock traded down $0.66 during mid-day trading on Wednesday, hitting $47.10. 547,846 shares of the stock traded hands, compared to its average volume of 2,223,397. RingCentral has a twelve month low of $23.59 and a twelve month high of $48.57. The firm has a market cap of $4.08 billion, a price-to-earnings ratio of 98.25, a price-to-earnings-growth ratio of 1.81 and a beta of 1.13. The company’s 50-day simple moving average is $38.33 and its 200-day simple moving average is $31.90.

RingCentral (NYSE:RNG) last issued its quarterly earnings results on Thursday, February 19th. The software maker reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.04. The company had revenue of $644.03 million for the quarter, compared to analysts’ expectations of $643.52 million. RingCentral had a negative return on equity of 28.14% and a net margin of 1.73%.The firm’s revenue for the quarter was up 4.8% on a year-over-year basis. During the same period last year, the firm earned $0.98 EPS. RingCentral has set its FY 2026 guidance at 4.760-4.970 EPS and its Q1 2026 guidance at 1.160-1.190 EPS. Analysts forecast that RingCentral will post 2.68 earnings per share for the current year.

RingCentral Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 9th were issued a $0.075 dividend. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, March 9th. RingCentral’s payout ratio is presently 62.50%.

Insiders Place Their Bets

In other RingCentral news, CEO Vladimir Shmunis sold 95,831 shares of RingCentral stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $35.59, for a total transaction of $3,410,625.29. Following the sale, the chief executive officer owned 126,685 shares of the company’s stock, valued at $4,508,719.15. The trade was a 43.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Vaibhav Agarwal sold 18,680 shares of RingCentral stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $36.33, for a total value of $678,644.40. Following the sale, the chief financial officer directly owned 139,493 shares in the company, valued at $5,067,780.69. The trade was a 11.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 259,854 shares of company stock worth $9,312,708 over the last 90 days. Insiders own 7.30% of the company’s stock.

Hedge Funds Weigh In On RingCentral

A number of hedge funds have recently modified their holdings of the stock. Bastion Asset Management Inc. grew its holdings in shares of RingCentral by 51.3% in the 1st quarter. Bastion Asset Management Inc. now owns 232,921 shares of the software maker’s stock worth $8,348,000 after acquiring an additional 78,943 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of RingCentral by 28.6% in the 1st quarter. Bank of New York Mellon Corp now owns 585,789 shares of the software maker’s stock worth $21,785,000 after acquiring an additional 130,418 shares during the last quarter. Maryland State Retirement & Pension System acquired a new position in shares of RingCentral in the 1st quarter worth $584,000. Hillsdale Investment Management Inc. grew its holdings in shares of RingCentral by 0.3% in the 1st quarter. Hillsdale Investment Management Inc. now owns 294,050 shares of the software maker’s stock worth $10,936,000 after acquiring an additional 800 shares during the last quarter. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management acquired a new position in shares of RingCentral in the 1st quarter worth $503,000. 98.61% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on RNG. Needham & Company LLC lifted their target price on RingCentral from $36.00 to $55.00 and gave the company a “buy” rating in a research note on Friday, March 13th. Piper Sandler lifted their price target on RingCentral from $28.00 to $37.00 and gave the company a “neutral” rating in a research report on Monday, February 23rd. Weiss Ratings upgraded RingCentral from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, March 2nd. Robert W. Baird lifted their price target on RingCentral from $30.00 to $34.00 and gave the company a “neutral” rating in a research report on Monday, February 23rd. Finally, Mizuho lifted their price target on RingCentral from $27.00 to $32.00 and gave the company a “neutral” rating in a research report on Friday, February 20th. Four equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $35.63.

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.