RingCentral, Inc. (RNG) - What Are Researchers Saying About This Stock?

Key Points

• Analyst sentiment is mixed: Seven of 12 analysts rate RingCentral “Hold,” while five rate it “Buy,” with an average 12-month price target of $56 versus the stock’s reported $78.27 price.
• RingCentral exceeded quarterly expectations, reporting $1.22 in EPS and $657.01 million in revenue, while revenue grew 5.9% year over year. Analysts expect approximately $2.89 in EPS for the current fiscal year.
• The company increased its quarterly dividend to $0.125 per share, equivalent to a $0.50 annualized payout and a 0.6% yield; insiders sold $6.0 million of stock during the quarter, while institutional investors own 98.61% of shares.

Shares of RingCentral, Inc. (NYSE:RNG - Get Free Report) have received a consensus recommendation of "Hold" from the twelve ratings firms that are covering the stock, MarketBeat reports. Seven investment analysts have rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $56.00.

RNG has been the topic of several research reports. Weiss Ratings upgraded RingCentral from a "hold (c)" rating to a "buy (b-)" rating in a report on Thursday. Wells Fargo & Company lifted their target price on RingCentral from $43.00 to $65.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 25th. Rosenblatt Securities reiterated a "buy" rating and issued a $50.00 target price on shares of RingCentral in a report on Friday, July 24th. Oppenheimer upped their target price on RingCentral from $50.00 to $85.00 and gave the stock an "outperform" rating in a report on Tuesday, September 1st. Finally, Royal Bank Of Canada assumed coverage on RingCentral in a research report on Thursday, September 3rd. They set an "outperform" rating and a $85.00 price target on the stock.

Insider Buying and Selling

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

In other RingCentral news, Director Amy Shenkan sold 1,264 shares of the firm's stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $78.89, for a total transaction of $99,716.96. Following the transaction, the director owned 28,108 shares of the company's stock, valued at approximately $2,217,440.12. This trade represents a 4.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tarun Arora sold 4,172 shares of the firm's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $70.36, for a total transaction of $293,541.92. Following the transaction, the chief accounting officer directly owned 65,692 shares in the company, valued at $4,622,089.12. This trade represents a 5.97% 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 sold 84,625 shares of company stock valued at $6,024,953 over the last quarter. 7.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On RingCentral

Institutional investors have recently bought and sold shares of the business. ANB Bank bought a new position in shares of RingCentral in the 3rd quarter worth $352,000. GAMMA Investing LLC lifted its stake in shares of RingCentral by 41.1% during the 3rd quarter. GAMMA Investing LLC now owns 3,222 shares of the software maker's stock worth $241,000 after purchasing an additional 938 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in shares of RingCentral by 19.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 5,487 shares of the software maker's stock worth $410,000 after purchasing an additional 908 shares during the last quarter. Elevation Wealth Partners LLC lifted its stake in shares of RingCentral by 119.3% during the 3rd quarter. Elevation Wealth Partners LLC now owns 546 shares of the software maker's stock worth $41,000 after purchasing an additional 297 shares during the last quarter. Finally, Integrated Wealth Concepts LLC bought a new stake in RingCentral during the second quarter valued at about $113,000. 98.61% of the stock is owned by hedge funds and other institutional investors.

RingCentral Stock Performance

Shares of NYSE:RNG opened at $78.27 on Tuesday. The firm has a market cap of $6.54 billion, a PE ratio of 62.61, a price-to-earnings-growth ratio of 1.37 and a beta of 1.10. The firm's 50 day simple moving average is $71.09 and its 200-day simple moving average is $51.67. RingCentral has a one year low of $24.14 and a one year high of $81.90.

RingCentral (NYSE:RNG - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.06. The firm had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. The company's revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.06 earnings per share. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. Equities research analysts predict 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 $0.1250 dividend. The ex-dividend date was Thursday, August 6th. This is an increase from RingCentral's previous quarterly dividend of $0.0750. This represents a $0.50 annualized dividend and a dividend yield of 0.6%. RingCentral's dividend payout ratio is presently 40.00%.

RingCentral Company Profile

RingCentral, Inc provides cloud-based business communications and collaboration solutions. Its platform helps organizations manage voice communications, team messaging, video meetings, contact center operations and customer interactions through internet-based services rather than traditional on-premises systems.

The company's offerings include RingCentral RingEX, a unified communications platform combining business phone service, messaging and video; RingCentral Video for meetings and collaboration; and RingCentral Contact Center, which supports customer service operations across voice and digital channels.

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