First Trust Advisors LP Cuts Stock Position in RingCentral, Inc. $RNG

Key Points

• First Trust Advisors LP cut its RingCentral stake by 2.5% in the first quarter, though it still held 1.58 million shares worth about $58.7 million. Institutional investors continue to own the vast majority of the company’s stock.
• RingCentral posted a strong Q2 earnings beat, reporting EPS of $1.22 on revenue of $657.0 million, both above analyst estimates. The company also lifted its Q3 and full-year 2026 guidance above consensus.
• The company increased its quarterly dividend to $0.125 per share from $0.07, while analyst sentiment remained mixed with a consensus rating of Hold and an average price target of $44.40.

First Trust Advisors LP trimmed its position in shares of RingCentral, Inc. (NYSE:RNG - Free Report) by 2.5% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 1,579,225 shares of the software maker's stock after selling 40,497 shares during the quarter. First Trust Advisors LP owned about 1.88% of RingCentral worth $58,731,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Meeder Asset Management Inc. boosted its stake in RingCentral by 127.3% in the first quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker's stock valued at $27,000 after acquiring an additional 410 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of RingCentral by 269.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker's stock worth $29,000 after purchasing an additional 738 shares in the last quarter. Rockefeller Capital Management L.P. increased its position in shares of RingCentral by 70.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock worth $30,000 after purchasing an additional 424 shares in the last quarter. Harvest Fund Management Co. Ltd purchased a new stake in shares of RingCentral during the 3rd quarter valued at $30,000. Finally, SJS Investment Consulting Inc. lifted its holdings in shares of RingCentral by 598.3% during the 1st quarter. SJS Investment Consulting Inc. now owns 1,222 shares of the software maker's stock valued at $45,000 after purchasing an additional 1,047 shares during the last quarter. Hedge funds and other institutional investors own 98.61% of the company's stock.

RingCentral News Summary

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported Q2 EPS of $1.22 versus $1.16 expected and revenue of $657.0 million versus $650.5 million expected, showing a solid beat on both the top and bottom lines. RingCentral Q2 Earnings Report
• Positive Sentiment: The company raised Q3 2026 guidance to EPS of $1.25-$1.30 and revenue of $664 million-$670 million, both above consensus, and lifted FY 2026 EPS guidance to $4.96-$5.10. RingCentral Financial Results
• Positive Sentiment: Management and recent commentary point to stronger subscription growth, higher margins, and expanding AI adoption, which are supporting the improved growth outlook. Zacks Q2 Earnings Article
• Positive Sentiment: RingCentral also announced a 66.7% increase in its quarterly dividend to $0.125 per share, signaling confidence in cash generation and capital returns. Insider Monkey Article
• Neutral Sentiment: Mizuho raised its price target to $40 but kept a neutral rating, which is below the current trading level and suggests some caution on valuation. Mizuho Price Target Update
• Neutral Sentiment: Rosenblatt reaffirmed a buy rating with a $50 target, broadly reinforcing the positive post-earnings sentiment. Rosenblatt Rating Update

Wall Street Analyst Weigh In

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

Several research analysts recently weighed in on RNG shares. Wells Fargo & Company boosted their target price on RingCentral from $32.00 to $43.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Morgan Stanley increased their price target on RingCentral from $33.00 to $40.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Needham & Company LLC reissued a "buy" rating on shares of RingCentral in a report on Monday, July 20th. Oppenheimer restated an "outperform" rating and set a $50.00 price target on shares of RingCentral in a research note on Friday, May 8th. Finally, Mizuho upped their price objective on shares of RingCentral from $38.00 to $40.00 and gave the company a "neutral" rating in a report on Friday. Three analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, RingCentral currently has a consensus rating of "Hold" and an average target price of $44.40.

RingCentral Stock Performance

Shares of RNG stock opened at $48.33 on Friday. RingCentral, Inc. has a fifty-two week low of $23.59 and a fifty-two week high of $50.14. The firm has a market capitalization of $4.05 billion, a PE ratio of 38.66, a P/E/G ratio of 1.42 and a beta of 1.14. The stock's 50-day simple moving average is $40.41 and its 200-day simple moving average is $36.78.

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, topping analysts' consensus estimates 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 negative return on equity of 34.98% and a net margin of 4.27%.The company's revenue was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the company 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. Sell-side analysts forecast that RingCentral, Inc. will post 2.78 earnings per share for the current year.

RingCentral Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th will be given a dividend of $0.125 per share. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $0.50 dividend on an annualized basis and a yield of 1.0%. This is a boost from RingCentral's previous quarterly dividend of $0.07. RingCentral's payout ratio is 40.00%.

Insider Buying and Selling at RingCentral

In other news, Director Amy Guggenheim Shenkan sold 1,265 shares of the stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $40.59, for a total value of $51,346.35. Following the sale, the director owned 29,372 shares in the company, valued at $1,192,209.48. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert I. Theis sold 2,530 shares of the firm's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $40.28, for a total transaction of $101,908.40. Following the transaction, the director directly owned 30,834 shares of the company's stock, valued at approximately $1,241,993.52. This trade represents a 7.58% 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. In the last 90 days, insiders sold 44,498 shares of company stock worth $1,892,586. Corporate insiders own 7.30% of the company's stock.

RingCentral 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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