RingCentral, Inc. (NYSE:RNG) Stock Has Consensus Price Target of $93.92

Key Points

• Analyst sentiment is mixed: Eight of 14 analysts rate RingCentral a Hold and six rate it a Buy; the average one-year price target is $93.92.
• RingCentral beat quarterly estimates, reporting EPS of $1.33 versus $1.28 expected and revenue of $676.04 million versus $667.30 million expected. Revenue rose 5.8% year over year.
• The company announced a quarterly dividend of $0.125 per share, equivalent to $0.50 annualized and a 0.7% yield.

RingCentral, Inc. (NYSE:RNG - Get Free Report) has earned an average recommendation of "Hold" from the fourteen ratings firms that are covering the company, MarketBeat.com reports. Eight investment analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $93.92.

RNG has been the topic of several research analyst reports. Robert W. Baird set a $95.00 price objective on RingCentral in a report on Friday, October 23rd. FBN Securities restated an "outperform" rating and issued a $105.00 price objective on shares of RingCentral in a research report on Friday, October 23rd. Royal Bank Of Canada assumed coverage on shares of RingCentral in a report on Thursday, September 3rd. They issued an "outperform" rating and a $85.00 price objective on the stock. Evercore set a $90.00 target price on RingCentral in a research report on Friday, October 23rd. Finally, Oppenheimer raised their target price on RingCentral from $85.00 to $110.00 and gave the company an "outperform" rating in a report on Friday, October 23rd.

RingCentral Price Performance

Shares of RNG stock opened at $72.01 on Friday. The stock has a market capitalization of $6.08 billion, a PE ratio of 9.53, a P/E/G ratio of 1.31 and a beta of 1.05. The business has a 50-day moving average of $76.70 and a 200 day moving average of $50.35. RingCentral has a 1-year low of $24.14 and a 1-year high of $98.14.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The software maker reported $1.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.28 by $0.05. RingCentral had a negative return on equity of 50.15% and a net margin of 25.27%. The firm had revenue of $676.04 million for the quarter, compared to the consensus estimate of $667.30 million. During the same period last year, the business posted $1.13 EPS. The company's revenue for the quarter was up 5.8% on a year-over-year basis. Analysts anticipate that RingCentral will post 2.96 EPS for the current year.

RingCentral Announces Dividend

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

The company also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, November 6th will be given a $0.1250 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Friday, November 6th. RingCentral's dividend payout ratio (DPR) is currently 6.61%.

Insider Activity at RingCentral

In related news, CAO Tarun Arora sold 4,172 shares of RingCentral stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $70.36, for a total value of $293,541.92. Following the completion of the sale, the chief accounting officer owned 65,692 shares of the company's stock, valued at $4,622,089.12. The trade was a 5.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vladimir Shmunis sold 15,556 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $71.78, for a total transaction of $1,116,609.68. Following the completion of the transaction, the chief executive officer owned 190,271 shares in the company, valued at approximately $13,657,652.38. This trade represents a 7.56% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 84,625 shares of company stock valued at $6,024,953 over the last three months. Insiders own 7.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Interchange Capital Partners LLC lifted its holdings in RingCentral by 2.6% during the 3rd quarter. Interchange Capital Partners LLC now owns 5,479 shares of the software maker's stock valued at $409,000 after purchasing an additional 137 shares during the last quarter. Parallel Advisors LLC boosted its stake in RingCentral by 4.4% in the third quarter. Parallel Advisors LLC now owns 3,520 shares of the software maker's stock worth $263,000 after buying an additional 149 shares in the last quarter. Fortitude Family Office LLC boosted its stake in RingCentral by 128.1% in the 3rd quarter. Fortitude Family Office LLC now owns 349 shares of the software maker's stock worth $26,000 after purchasing an additional 196 shares in the last quarter. WealthCollab LLC lifted its holdings in RingCentral by 59.7% in the 1st quarter. WealthCollab LLC now owns 693 shares of the software maker's stock worth $26,000 after purchasing an additional 259 shares in the last quarter. Finally, Versant Capital Management Inc boosted its holdings in shares of RingCentral by 2.3% in the second quarter. Versant Capital Management Inc now owns 11,521 shares of the software maker's stock valued at $449,000 after purchasing an additional 259 shares during the period. Institutional investors and hedge funds own 98.61% of the company's stock.

About RingCentral

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.

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