Pacer Advisors Inc. Sells 83,848 Shares of RingCentral, Inc. $RNG

Key Points

• Pacer Advisors reduced its RingCentral stake by 11.6% in the fourth quarter, selling 83,848 shares and leaving it with 637,862 shares valued at about $18.4 million.
• RingCentral reported better-than-expected quarterly results, with EPS of $1.20 versus the $1.17 estimate and revenue of $644.2 million, up 5.3% year over year.
• Analysts remain cautious overall: the stock has a consensus Hold rating with an average price target of $43, even as some firms recently raised their targets.

Pacer Advisors Inc. cut its holdings in shares of RingCentral, Inc. (NYSE:RNG - Free Report) by 11.6% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 637,862 shares of the software maker's stock after selling 83,848 shares during the period. Pacer Advisors Inc. owned 0.74% of RingCentral worth $18,421,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in RNG. Vanguard Group Inc. lifted its stake in RingCentral by 1.1% in the third quarter. Vanguard Group Inc. now owns 11,823,636 shares of the software maker's stock worth $335,082,000 after acquiring an additional 129,444 shares during the period. Capital World Investors raised its holdings in RingCentral by 20.9% in the 3rd quarter. Capital World Investors now owns 11,735,991 shares of the software maker's stock worth $332,598,000 after purchasing an additional 2,031,861 shares in the last quarter. LSV Asset Management raised its holdings in RingCentral by 142.4% in 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. AQR Capital Management LLC lifted its position in shares of RingCentral by 35.4% in the 4th quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker's stock worth $57,874,000 after purchasing an additional 523,966 shares during the period. Finally, Alyeska Investment Group L.P. purchased a new stake in shares of RingCentral in the 3rd quarter worth about $53,365,000. Institutional investors own 98.61% of the company's stock.

RingCentral Price Performance

NYSE:RNG opened at $35.03 on Friday. The firm's 50-day moving average price is $40.93 and its 200-day moving average price is $35.01. The company has a market capitalization of $2.94 billion, a PE ratio of 37.26, a P/E/G ratio of 1.03 and a beta of 1.14. RingCentral, Inc. has a 1-year low of $23.59 and a 1-year high of $49.85.

RingCentral (NYSE:RNG - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.03. The company had revenue of $644.20 million during the quarter, compared to analysts' expectations of $642.73 million. RingCentral had a net margin of 3.31% and a negative return on equity of 33.75%. RingCentral's revenue was up 5.3% on a year-over-year basis. During the same period last 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. Equities analysts anticipate that RingCentral, Inc. will post 2.79 EPS for the current fiscal year.

RingCentral Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Tuesday, June 2nd were issued a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Tuesday, June 2nd. RingCentral's dividend payout ratio (DPR) is presently 31.91%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on RNG shares. Wells Fargo & Company boosted their price target on shares of RingCentral from $32.00 to $43.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Weiss Ratings upgraded shares of RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 2nd. Jefferies Financial Group reaffirmed a "hold" rating and set a $40.00 price objective on shares of RingCentral in a research report on Saturday, May 9th. Robert W. Baird set a $45.00 target price on RingCentral in a research report on Friday, May 8th. Finally, Needham & Company LLC raised their target price on RingCentral from $36.00 to $55.00 and gave the company a "buy" rating in a research note on Friday, March 13th. Three investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $43.00.

Insider Transactions at RingCentral

In related news, CAO Tarun Arora sold 3,615 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $43.00, for a total value of $155,445.00. Following the sale, the chief accounting officer owned 68,100 shares in the company, valued at $2,928,300. This represents a 5.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 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 firm's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $42.54, for a total value of $722,669.52. Following the transaction, the chief operating officer directly owned 212,724 shares of the company's stock, valued at approximately $9,049,278.96. This trade represents a 7.40% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 41,656 shares of company stock valued at $1,780,310 in the last ninety days. 7.30% of the stock is currently owned by corporate insiders.

About RingCentral

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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