RingCentral (NYSE:RNG) Price Target Raised to $110.00

RingCentral (NYSE:RNG) had its price objective raised by Needham & Company LLC from $85.00 to $110.00 in a report published on Friday morning, MarketBeat reports. Needham & Company LLC currently has a buy rating on the software maker’s stock.

Several other brokerages also recently commented on RNG. Oppenheimer lifted their target price on shares of RingCentral from $50.00 to $85.00 and gave the stock an “outperform” rating in a report on Tuesday, September 1st. Rosenblatt Securities reiterated a “buy” rating and issued a $50.00 price target on shares of RingCentral in a research note on Friday, July 24th. Wells Fargo & Company increased their price target on shares of RingCentral from $43.00 to $65.00 and gave the company an “equal weight” rating in a report on Tuesday, August 25th. Piper Sandler raised their price objective on shares of RingCentral from $40.00 to $43.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. Finally, Jefferies Financial Group boosted their price objective on RingCentral from $40.00 to $75.00 and gave the stock a “hold” rating in a report on Friday. Six investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $89.69.

RingCentral Price Performance

RNG stock opened at $83.46 on Friday. The company has a fifty day moving average price of $74.01 and a two-hundred day moving average price of $54.35. RingCentral has a one year low of $24.14 and a one year high of $98.14. The stock has a market cap of $6.97 billion, a price-to-earnings ratio of 11.04, a price-to-earnings-growth ratio of 1.44 and a beta of 1.10.

RingCentral (NYSE:RNG) last released its quarterly earnings data on Thursday, October 22nd. The software maker reported $1.33 EPS for the quarter, beating the consensus estimate of $1.28 by $0.05. RingCentral had a net margin of 25.27% and a negative return on equity of 50.15%. The firm had revenue of $676.04 million for the quarter, compared to the consensus estimate of $667.30 million. During the same period in the previous year, the company earned $1.13 earnings per share. The company’s quarterly revenue was up 5.8% on a year-over-year basis. Research analysts anticipate that RingCentral will post 2.89 EPS for the current fiscal year.

RingCentral Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be paid a $0.1250 dividend. The ex-dividend date is Friday, November 6th. This represents a $0.50 annualized dividend and a yield of 0.6%. RingCentral’s payout ratio is 6.61%.

Insider Transactions at RingCentral

In other news, CFO Vaibhav Agarwal sold 7,046 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $72.10, for a total transaction of $508,016.60. Following the transaction, the chief financial officer directly owned 146,700 shares of the company’s stock, valued at approximately $10,577,070. This trade represents a 4.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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, COO Kira Makagon sold 36,185 shares of RingCentral stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $70.11, for a total transaction of $2,536,930.35. Following the completion of the sale, the chief operating officer owned 245,385 shares of the company’s stock, valued at approximately $17,203,942.35. The trade was a 12.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 84,625 shares of company stock worth $6,024,953. Company insiders own 7.30% of the company’s stock.

Hedge Funds Weigh In On RingCentral

A number of hedge funds have recently added to or reduced their stakes in RNG. Quantinno Capital Management LP raised its holdings in RingCentral by 150.4% in the 1st quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker’s stock valued at $73,524,000 after acquiring an additional 1,187,437 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of RingCentral by 8.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,308,949 shares of the software maker’s stock valued at $48,676,000 after acquiring an additional 101,002 shares during the period. Bank of New York Mellon Corp grew its holdings in shares of RingCentral by 28.6% during 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 purchasing an additional 130,418 shares in the last quarter. Principal Financial Group Inc. acquired a new stake in shares of RingCentral during the 1st quarter worth $13,719,000. Finally, Hillsdale Investment Management Inc. grew its holdings in shares of RingCentral by 0.3% during the 1st quarter. Hillsdale Investment Management Inc. now owns 294,050 shares of the software maker’s stock worth $10,936,000 after purchasing an additional 800 shares in the last quarter. Institutional investors own 98.61% of the company’s stock.

Key Headlines Impacting RingCentral

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: Raised full-year guidance: RingCentral now expects fiscal 2026 adjusted EPS of $5.07–$5.12, well above the $4.61 analyst consensus, and revenue of approximately $2.7 billion versus expectations of $2.6 billion. Fourth-quarter EPS guidance of $1.32–$1.37 also exceeds the $1.24 consensus, while revenue guidance is slightly above estimates. RingCentral guidance
• Positive Sentiment: Beat quarterly expectations: Third-quarter EPS came in at $1.33 versus the $1.28 consensus, while revenue of $676.04 million exceeded estimates of $667.30 million and increased 5.8% year over year. RingCentral Q3 earnings
• Positive Sentiment: AI growth is becoming material: Paid artificial-intelligence product annual recurring revenue surpassed $400 million, with reports indicating that AI monetization roughly doubled. This supports expectations for stronger growth and margin expansion. RingCentral long-term investor takeaways
• Positive Sentiment: Balance sheet improved: RingCentral reduced gross debt below $1 billion ahead of schedule, while earnings and cash flow improved. The company also declared a quarterly dividend of $0.125 per share, equal to a $0.50 annualized payout. RingCentral outlook and cash flow
• Neutral Sentiment: Analyst targets moved higher: Needham raised its target to $110 with a Buy rating, FBN Securities lifted its target to $105, and Morgan Stanley increased its target to $91 while retaining Equal Weight. Wells Fargo also raised its target to $85 but maintained Equal Weight, suggesting some analysts view the near-term upside as more limited.
• Neutral Sentiment: At approximately $83.46, RingCentral remains below its $98.14 52-week high but trades well above its 50-day and 200-day moving averages, indicating strong momentum alongside a higher valuation.

RingCentral Company Profile

RingCentral, Inc is a provider of cloud-based business communications and collaboration solutions. Its platform enables organizations to manage business phone services, team messaging, video meetings, contact center operations and other communications through internet-based applications rather than traditional on-premises systems.

The company’s offerings include RingEX, a unified communications platform that combines voice, messaging and video; RingCentral Video for online meetings and collaboration; and RingCX, a cloud contact center solution.