RingCentral, Inc. (NYSE:RNG) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on RingCentral, with eight hold ratings and four buys. The average 12-month price target is $56, below the stock’s reported opening price of $74.75.
• RingCentral beat quarterly expectations, reporting $1.22 in earnings per share versus the $1.16 consensus and $657.01 million in revenue versus $650.53 million expected; revenue increased 5.9% year over year.
• The company raised its quarterly dividend to $0.125 per share, or $0.50 annualized, equating to a 0.7% yield. Institutional investors own 98.61% of the stock, while insiders have sold 87,156 shares worth approximately $6.1 million over the past 90 days.

RingCentral, Inc. (NYSE:RNG - Get Free Report) has been assigned an average rating of "Hold" from the twelve ratings firms that are presently covering the firm, Marketbeat reports. Eight equities research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $56.00.

RNG has been the subject of several recent research reports. Piper Sandler increased their price target on RingCentral from $40.00 to $43.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Weiss Ratings reiterated a "hold (c)" rating on shares of RingCentral in a research note on Friday, July 17th. Rosenblatt Securities reiterated a "buy" rating and issued a $50.00 target price on shares of RingCentral in a research report on Friday, July 24th. Royal Bank Of Canada initiated coverage on shares of RingCentral in a report on Thursday, September 3rd. They issued an "outperform" rating and a $85.00 price objective for the company. Finally, Needham & Company LLC increased their price objective on shares of RingCentral from $55.00 to $85.00 and gave the stock a "buy" rating in a research note on Friday, August 28th.

Insider Activity

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

In other news, CEO Vladimir Shmunis sold 11,165 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $76.58, for a total transaction of $855,015.70. Following the completion of the transaction, the chief executive officer directly owned 179,106 shares in the company, valued at approximately $13,715,937.48. The trade was a 5.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible 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, COO Kira Makagon sold 36,185 shares of the business's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $70.11, for a total value of $2,536,930.35. Following the transaction, the chief operating officer owned 245,385 shares of the company's stock, valued at $17,203,942.35. This trade represents a 12.85% 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. Insiders have sold a total of 87,156 shares of company stock worth $6,078,491 over the last ninety days. 7.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. LSV Asset Management grew its stake in RingCentral by 142.4% in the 4th quarter. LSV Asset Management now owns 2,871,700 shares of the software maker's stock valued at $82,935,000 after buying an additional 1,686,900 shares during the last quarter. Quantinno Capital Management LP raised its holdings in RingCentral by 150.4% during the 1st quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker's stock worth $73,524,000 after purchasing an additional 1,187,437 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of RingCentral by 8.4% in 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 purchasing an additional 101,002 shares during the period. Invenomic Capital Management LP raised its position in shares of RingCentral by 3.7% in the 4th quarter. Invenomic Capital Management LP now owns 1,538,034 shares of the software maker's stock valued at $44,418,000 after acquiring an additional 55,587 shares during the period. Finally, Jupiter Asset Management Ltd. lifted its holdings in RingCentral by 11.4% during the fourth quarter. Jupiter Asset Management Ltd. now owns 1,456,270 shares of the software maker's stock worth $42,057,000 after acquiring an additional 149,532 shares in the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

RingCentral Stock Performance

Shares of RNG stock opened at $74.75 on Friday. The firm has a market capitalization of $6.24 billion, a price-to-earnings ratio of 59.80, a price-to-earnings-growth ratio of 1.27 and a beta of 1.14. RingCentral has a one year low of $24.14 and a one year high of $77.95. The company has a 50 day moving average price of $60.58 and a 200 day moving average price of $47.02.

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

RingCentral Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Thursday, August 6th were issued a $0.125 dividend. This is a boost from RingCentral's previous quarterly dividend of $0.07. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.7%. RingCentral's dividend payout ratio is 40.00%.

RingCentral Company Profile

RingCentral, Inc is a cloud communications and collaboration company that provides business communications software through a subscription-based platform. Its services are designed to help organizations manage voice, messaging, video meetings, team collaboration and other communications across devices and locations.

The company's offerings include RingEX, its unified communications platform; RingCentral Video for online meetings and collaboration; RingCentral Events for virtual and hybrid events; and contact center products, including RingCX.

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