Arrowstreet Capital Limited Partnership Has $12.24 Million Position in RingCentral, Inc. $RNG

Key Points

• Arrowstreet Capital cut its RingCentral stake by 50.9% in the first quarter, selling 341,328 shares and retaining 329,207 shares worth approximately $12.24 million. Institutional investors collectively own 98.61% of the company.
• RingCentral reported quarterly adjusted EPS of $1.22, beating estimates by $0.06, while revenue rose 5.9% year over year to $657.01 million. The stock opened at $55.77, above the analyst consensus price target of $44.40.
• The company increased its quarterly dividend to $0.125 per share from $0.07, implying an annualized dividend of $0.50 and a 0.9% yield. Analysts remain cautious overall, with three Buy ratings and nine Holds, resulting in a consensus rating of “Hold.”

Arrowstreet Capital Limited Partnership lessened its holdings in shares of RingCentral, Inc. (NYSE:RNG - Free Report) by 50.9% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 329,207 shares of the software maker's stock after selling 341,328 shares during the period. Arrowstreet Capital Limited Partnership owned 0.39% of RingCentral worth $12,243,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new position in RingCentral during the first quarter worth $697,000. Robertson Stephens Wealth Management LLC lifted its holdings in RingCentral by 124.7% in the fourth quarter. Robertson Stephens Wealth Management LLC now owns 90,311 shares of the software maker's stock valued at $2,608,000 after acquiring an additional 50,122 shares during the period. LSV Asset Management boosted its position in shares of RingCentral by 142.4% during the 4th 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. Harel Insurance Investments & Financial Services Ltd. boosted its position in shares of RingCentral by 60.0% during the 4th quarter. Harel Insurance Investments & Financial Services Ltd. now owns 280,323 shares of the software maker's stock worth $8,096,000 after purchasing an additional 105,145 shares in the last quarter. Finally, Jupiter Asset Management Ltd. grew its stake in shares of RingCentral by 11.4% during the 4th quarter. Jupiter Asset Management Ltd. now owns 1,456,270 shares of the software maker's stock worth $42,057,000 after purchasing an additional 149,532 shares during the period. Institutional investors and hedge funds own 98.61% of the company's stock.

RingCentral Stock Up 4.3%

RNG stock opened at $55.77 on Friday. RingCentral, Inc. has a 52-week low of $23.59 and a 52-week high of $58.98. The stock's fifty day simple moving average is $41.71 and its 200-day simple moving average is $37.71. The stock has a market capitalization of $4.68 billion, a price-to-earnings ratio of 44.62, a price-to-earnings-growth ratio of 0.93 and a beta of 1.14.

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

RingCentral (NYSE:RNG - Get Free Report) last released its earnings results on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, beating 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 firm had revenue of $657.01 million during the quarter, compared to analyst estimates of $650.53 million. During the same period in the prior year, the firm posted $1.06 earnings per share. The business's quarterly revenue was up 5.9% compared to the same quarter last year. 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, analysts anticipate that RingCentral, Inc. will post 2.88 earnings per share for the current fiscal year.

RingCentral Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be issued a $0.125 dividend. The ex-dividend date is Thursday, August 6th. This is a positive change from RingCentral's previous quarterly dividend of $0.07. This represents a $0.50 dividend on an annualized basis and a yield of 0.9%. RingCentral's payout ratio is presently 40.00%.

Insider Transactions at RingCentral

In related news, Director Amy Guggenheim Shenkan sold 1,265 shares of the company's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $40.59, for a total transaction of $51,346.35. Following the completion of the transaction, the director owned 29,372 shares of the company's stock, valued at approximately $1,192,209.48. This represents a 4.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Agarwal sold 7,047 shares of RingCentral stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $46.17, for a total transaction of $325,359.99. Following the transaction, the chief financial officer directly owned 169,282 shares in the company, valued at approximately $7,815,749.94. This trade represents a 4.00% decrease in their ownership of the stock. 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 38,628 shares of company stock valued at $1,656,201 in the last quarter. Insiders own 7.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RNG. Rosenblatt Securities reiterated a "buy" rating and issued a $50.00 price target on shares of RingCentral in a report on Friday, July 24th. Jefferies Financial Group reissued a "hold" rating and set a $40.00 price objective on shares of RingCentral in a report on Saturday, May 9th. Weiss Ratings restated a "hold (c)" rating on shares of RingCentral in a research report on Friday, July 17th. Mizuho increased their target price on shares of RingCentral from $38.00 to $40.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Finally, Needham & Company LLC reiterated a "buy" rating on shares of RingCentral in a research report on Monday, July 20th. Three equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $44.40.

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.

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