RingCentral (NYSE:RNG) Trading 7% Higher on Analyst Upgrade

RingCentral, Inc. (NYSE:RNG)’s share price rose 7% during mid-day trading on Monday after Mizuho raised their price target on the stock from $38.00 to $40.00. Mizuho currently has a neutral rating on the stock. RingCentral traded as high as $52.88 and last traded at $51.7020. Approximately 755,349 shares changed hands during trading, a decline of 64% from the average session volume of 2,107,862 shares. The stock had previously closed at $48.31.

Other equities research analysts have also recently issued research reports about the stock. Morgan Stanley boosted their price target on shares of RingCentral from $33.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Monday, May 11th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $50.00 price objective on shares of RingCentral in a research note on Friday. Wells Fargo & Company increased their price target on RingCentral from $32.00 to $43.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Oppenheimer restated an “outperform” rating and issued a $50.00 price target on shares of RingCentral in a research report on Friday, May 8th. Finally, Piper Sandler lifted their price objective on RingCentral from $40.00 to $43.00 and gave the stock a “neutral” rating in a research note on Friday. Three research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $44.40.

Insider Activity

In other RingCentral news, CAO Tarun Arora sold 3,615 shares of RingCentral stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $43.00, for a total value of $155,445.00. Following the transaction, the chief accounting officer owned 68,100 shares of the company’s stock, valued at approximately $2,928,300. The trade was a 5.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 Robert I. Theis sold 2,530 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $40.28, for a total transaction of $101,908.40. Following the completion of the transaction, the director owned 30,834 shares of the company’s stock, valued at $1,241,993.52. This trade represents a 7.58% decrease in their position. 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 ninety days, insiders sold 38,628 shares of company stock worth $1,656,201. Corporate insiders own 7.30% of the company’s stock.

Hedge Funds Weigh In On RingCentral

A number of large investors have recently added to or reduced their stakes in RNG. WealthCollab LLC lifted its holdings in shares of RingCentral by 59.7% in the first quarter. WealthCollab LLC now owns 693 shares of the software maker’s stock valued at $26,000 after purchasing an additional 259 shares in the last quarter. Meeder Asset Management Inc. grew its holdings in shares of RingCentral by 127.3% during the first quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker’s stock worth $27,000 after buying an additional 410 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of RingCentral by 269.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker’s stock worth $29,000 after buying an additional 738 shares in the last quarter. Rockefeller Capital Management L.P. raised its position in RingCentral by 70.5% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker’s stock valued at $30,000 after buying an additional 424 shares during the last quarter. Finally, Harvest Fund Management Co. Ltd bought a new stake in RingCentral in the 3rd quarter valued at approximately $30,000. Institutional investors own 98.61% of the company’s stock.

RingCentral Trading Up 7.3%

The company has a 50 day simple moving average of $40.41 and a 200 day simple moving average of $36.84. The stock has a market cap of $4.35 billion, a P/E ratio of 41.32, a PEG ratio of 1.42 and a beta of 1.14.

RingCentral (NYSE:RNG) last posted its quarterly earnings data 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. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. The company had revenue of $657.01 million for the quarter, compared to the consensus estimate of $650.53 million. During the same period last year, the company earned $1.06 earnings per share. The firm’s revenue was up 5.9% compared to the same quarter last year. 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, sell-side analysts expect that RingCentral, Inc. will post 2.78 earnings per share for the current year.

RingCentral Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th will be given a dividend of $0.125 per share. This is a boost from RingCentral’s previous quarterly dividend of $0.07. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $0.50 annualized dividend and a yield of 1.0%. RingCentral’s payout ratio is presently 24.00%.

RingCentral Company Profile

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.