Hsbc Holdings PLC Acquires 44,018 Shares of RingCentral, Inc. $RNG

Key Points

• HSBC Holdings PLC increased its RingCentral stake by 76.7% in the fourth quarter, buying 44,018 additional shares and bringing its total to 101,445 shares worth about $2.93 million.
• RingCentral reported better-than-expected quarterly results, with EPS of $1.20 versus the $1.17 consensus and revenue of $644.2 million, up 5.3% year over year.
• Analysts currently have a Hold consensus on RingCentral, with an average price target of $43, while insiders have also been selling shares in recent months.

Hsbc Holdings PLC raised its holdings in RingCentral, Inc. (NYSE:RNG - Free Report) by 76.7% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 101,445 shares of the software maker's stock after purchasing an additional 44,018 shares during the quarter. Hsbc Holdings PLC owned 0.12% of RingCentral worth $2,934,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. EverSource Wealth Advisors LLC lifted its position in shares of RingCentral by 269.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker's stock worth $29,000 after buying an additional 738 shares during the last quarter. Harvest Fund Management Co. Ltd bought a new position in RingCentral in the third quarter valued at about $30,000. Global Retirement Partners LLC raised its stake in RingCentral by 70.9% during the fourth quarter. Global Retirement Partners LLC now owns 1,540 shares of the software maker's stock worth $44,000 after acquiring an additional 639 shares in the last quarter. Covestor Ltd raised its stake in RingCentral by 198.5% during the fourth quarter. Covestor Ltd now owns 1,594 shares of the software maker's stock worth $46,000 after acquiring an additional 1,060 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of RingCentral by 103.0% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,823 shares of the software maker's stock worth $52,000 after acquiring an additional 925 shares during the last quarter. Institutional investors own 98.61% of the company's stock.

RingCentral Stock Down 0.6%

Shares of NYSE:RNG opened at $36.96 on Monday. The firm has a market cap of $3.10 billion, a P/E ratio of 39.32, a P/E/G ratio of 1.09 and a beta of 1.14. RingCentral, Inc. has a 12-month low of $23.59 and a 12-month high of $49.85. The business has a fifty day simple moving average of $40.81 and a 200 day simple moving average of $35.27.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.03. The firm had revenue of $644.20 million for the quarter, compared to analyst estimates of $642.73 million. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The business's revenue was up 5.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.00 EPS. RingCentral has set its FY 2026 guidance at 4.850-5.010 EPS and its Q2 2026 guidance at 1.150-1.170 EPS. As a group, equities research analysts expect that RingCentral, Inc. will post 2.79 EPS for the current year.

RingCentral Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Tuesday, June 2nd were issued a dividend of $0.075 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $0.30 annualized dividend and a yield of 0.8%. RingCentral's dividend payout ratio (DPR) is presently 31.91%.

Insiders Place Their Bets

In other news, CFO Vaibhav Agarwal sold 7,047 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $46.17, for a total value of $325,359.99. Following the transaction, the chief financial officer owned 169,282 shares in the company, valued at approximately $7,815,749.94. The trade was a 4.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 16,988 shares of the company's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $42.54, for a total transaction of $722,669.52. Following the completion of the sale, the chief operating officer directly owned 212,724 shares in the company, valued at approximately $9,049,278.96. This represents a 7.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 41,656 shares of company stock worth $1,780,310. 7.30% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on RNG shares. Zacks Research upgraded shares of RingCentral from a "strong sell" rating to a "hold" rating in a research note on Wednesday, March 4th. Oppenheimer reiterated an "outperform" rating and set a $50.00 price objective on shares of RingCentral in a research report on Friday, May 8th. Robert W. Baird set a $45.00 target price on shares of RingCentral in a research report on Friday, May 8th. Jefferies Financial Group reaffirmed a "hold" rating and set a $40.00 target price on shares of RingCentral in a research note on Saturday, May 9th. Finally, Weiss Ratings upgraded shares of RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 2nd. Three analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $43.00.

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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