RingCentral (NYSE:RNG) Raised to "Moderate Buy" at Royal Bank Of Canada

Key Points

• Royal Bank of Canada upgraded RingCentral to “moderate buy”, while analyst opinions remain mixed: four rate the stock a Buy and eight rate it Hold. The consensus target price is $56.
• RingCentral’s latest quarterly results exceeded expectations, with EPS of $1.22 versus the $1.16 consensus and revenue of $657.01 million, up 5.9% year over year.
• The stock opened at $76.40, near its 52-week high of $77.95, amid strong institutional ownership of 98.61%. Recent insider sales were conducted under pre-arranged plans to cover tax withholding on vested equity awards.

RingCentral (NYSE:RNG - Get Free Report) was upgraded by Royal Bank Of Canada to a "moderate buy" rating in a research report issued on Thursday, Zacks reports.

Several other equities analysts also recently weighed in on RNG. Rosenblatt Securities restated a "buy" rating and set a $50.00 target price on shares of RingCentral in a report on Friday, July 24th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $40.00 price target on shares of RingCentral in a report on Saturday, May 9th. Needham & Company LLC increased their price target on shares of RingCentral from $55.00 to $85.00 and gave the company a "buy" rating in a research report on Friday, August 28th. Mizuho lifted their price objective on RingCentral from $38.00 to $40.00 and gave the stock a "neutral" rating in a research report on Friday, July 24th. Finally, Wells Fargo & Company upped their target price on RingCentral from $43.00 to $65.00 and gave the company an "equal weight" rating in a research note on Tuesday, August 25th. Four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, RingCentral presently has an average rating of "Hold" and an average target price of $56.00.

RingCentral Stock Performance

• It's RingCentral NYSE: RNG You Want In Your 2021 Portfolio, Not Zoom NASDAQ: ZM

RingCentral stock opened at $76.40 on Thursday. RingCentral has a fifty-two week low of $24.14 and a fifty-two week high of $77.95. The firm has a market capitalization of $6.38 billion, a price-to-earnings ratio of 61.12, a price-to-earnings-growth ratio of 1.25 and a beta of 1.14. The stock's fifty day moving average is $54.16 and its two-hundred day moving average is $44.33.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.06. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The business had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. During the same quarter in the previous year, the company posted $1.06 EPS. The business's revenue was up 5.9% on a year-over-year basis. 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 forecast that RingCentral will post 2.89 EPS for the current fiscal year.

Insider Buying and Selling at RingCentral

In other RingCentral news, CEO Vladimir Shmunis sold 11,165 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $76.58, for a total value of $855,015.70. Following the completion of the sale, the chief executive officer directly owned 179,106 shares in the company, valued at approximately $13,715,937.48. This represents a 5.87% decrease in their position. The sale was disclosed in a filing 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, CFO Vaibhav Agarwal sold 7,046 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $72.10, for a total value of $508,016.60. Following the transaction, the chief financial officer directly owned 146,700 shares in the company, valued at $10,577,070. The trade was a 4.58% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 46,799 shares of company stock worth $3,248,018 over the last quarter. Insiders own 7.30% of the company's stock.

Hedge Funds Weigh In On RingCentral

Several institutional investors have recently bought and sold shares of the business. Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new stake in RingCentral during the first quarter valued at about $697,000. LSV Asset Management raised its holdings in RingCentral by 142.4% in the fourth quarter. LSV Asset Management now owns 2,871,700 shares of the software maker's stock worth $82,935,000 after purchasing an additional 1,686,900 shares in the last quarter. Jupiter Asset Management Ltd. lifted its position in shares of RingCentral by 11.4% during the fourth quarter. Jupiter Asset Management Ltd. now owns 1,456,270 shares of the software maker's stock valued at $42,057,000 after buying an additional 149,532 shares during the last quarter. Maryland State Retirement & Pension System bought a new stake in shares of RingCentral in the 1st quarter valued at about $584,000. Finally, Insight Wealth Strategies LLC purchased a new position in shares of RingCentral in the 2nd quarter worth approximately $6,636,000. 98.61% of the stock is owned by hedge funds and other institutional investors.

RingCentral News Roundup

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RBC Capital Markets began coverage of RingCentral with an Outperform rating, providing a new bullish catalyst for the stock. RingCentral Jumps 5.7% After RBC Capital Initiates at Outperform
• Positive Sentiment: RBC said RingCentral appears less susceptible to AI displacement risks than the market currently assumes, suggesting the company’s communications software and enterprise customer relationships may remain defensible as AI adoption accelerates. RingCentral Less Susceptible to AI Displacement Risks than Market Fears, RBC Says
• Positive Sentiment: The stock reached a new 52-week high, indicating strong recent momentum and investor follow-through after the bullish analyst coverage. RingCentral Hits New 52-Week High
• Neutral Sentiment: CEO Vladimir Shmunis, CFO Vaibhav Agarwal and Chief Accounting Officer Tarun Arora reported stock sales totaling approximately $2.55 million. Each transaction was conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding tied to vested equity awards, reducing the likelihood that the sales reflect negative views of RingCentral’s outlook.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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