Robeco Institutional Asset Management B.V. Purchases New Stake in RingCentral, Inc. $RNG

Key Points

• Robeco Institutional Asset Management purchased 27,055 RingCentral shares worth approximately $2.02 million, while institutional investors and hedge funds collectively own 98.61% of the stock.
• RingCentral exceeded third-quarter expectations, reporting EPS of $1.33 versus $1.28 expected and revenue of $676.04 million, up 5.8% year over year. The company also raised its full-year guidance and highlighted growing AI-related recurring revenue.
• Analyst sentiment remains mixed, with six Buy ratings and eight Holds; the consensus rating is Hold with a target price of $89.69. Shares recently traded at $83.46, and RingCentral announced a quarterly dividend of $0.125 per share.

Robeco Institutional Asset Management B.V. purchased a new position in shares of RingCentral, Inc. (NYSE:RNG - Free Report) in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 27,055 shares of the software maker's stock, valued at approximately $2,021,000.

A number of other large investors have also recently added to or reduced their stakes in the business. WealthCollab LLC grew its position in RingCentral by 59.7% in the first quarter. WealthCollab LLC now owns 693 shares of the software maker's stock worth $26,000 after acquiring an additional 259 shares during the period. Fortitude Family Office LLC raised its position in RingCentral by 128.1% in the third quarter. Fortitude Family Office LLC now owns 349 shares of the software maker's stock valued at $26,000 after purchasing an additional 196 shares during the period. Meeder Asset Management Inc. raised its position 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 purchasing an additional 410 shares during the period. Rockefeller Capital Management L.P. raised its position in RingCentral by 70.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock valued at $30,000 after purchasing an additional 424 shares during the period. Finally, Elevation Wealth Partners LLC lifted its stake in shares of RingCentral by 119.3% in the 3rd quarter. Elevation Wealth Partners LLC now owns 546 shares of the software maker's stock valued at $41,000 after purchasing an additional 297 shares during the last quarter. 98.61% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have recently weighed in on RNG. UBS Group set a $91.00 price target on RingCentral in a report on Friday. Oppenheimer boosted their price objective on shares of RingCentral from $85.00 to $110.00 and gave the company an "outperform" rating in a report on Friday. Mizuho set a $85.00 price objective on shares of RingCentral in a report on Friday. Royal Bank Of Canada began coverage on shares of RingCentral in a research report on Thursday, September 3rd. They issued an "outperform" rating and a $85.00 target price on the stock. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $50.00 target price on shares of RingCentral in a research note on Friday, July 24th. Six research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $89.69.

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

RingCentral News Summary

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: Raised full-year guidance: RingCentral now expects fiscal 2026 adjusted EPS of $5.07–$5.12, well above the $4.61 analyst consensus, and revenue of approximately $2.7 billion versus expectations of $2.6 billion. Fourth-quarter EPS guidance of $1.32–$1.37 also exceeds the $1.24 consensus, while revenue guidance is slightly above estimates. RingCentral guidance
• Positive Sentiment: Beat quarterly expectations: Third-quarter EPS came in at $1.33 versus the $1.28 consensus, while revenue of $676.04 million exceeded estimates of $667.30 million and increased 5.8% year over year. RingCentral Q3 earnings
• Positive Sentiment: AI growth is becoming material: Paid artificial-intelligence product annual recurring revenue surpassed $400 million, with reports indicating that AI monetization roughly doubled. This supports expectations for stronger growth and margin expansion. RingCentral long-term investor takeaways
• Positive Sentiment: Balance sheet improved: RingCentral reduced gross debt below $1 billion ahead of schedule, while earnings and cash flow improved. The company also declared a quarterly dividend of $0.125 per share, equal to a $0.50 annualized payout. RingCentral outlook and cash flow
• Neutral Sentiment: Analyst targets moved higher: Needham raised its target to $110 with a Buy rating, FBN Securities lifted its target to $105, and Morgan Stanley increased its target to $91 while retaining Equal Weight. Wells Fargo also raised its target to $85 but maintained Equal Weight, suggesting some analysts view the near-term upside as more limited.
• Neutral Sentiment: At approximately $83.46, RingCentral remains below its $98.14 52-week high but trades well above its 50-day and 200-day moving averages, indicating strong momentum alongside a higher valuation.

Insider Activity at RingCentral

In other RingCentral news, CEO Vladimir Shmunis sold 11,165 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $76.58, for a total value of $855,015.70. Following the completion of the transaction, the chief executive officer owned 179,106 shares of the company's stock, valued at $13,715,937.48. This trade represents a 5.87% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at 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, Director Amy Shenkan sold 1,264 shares of the firm's stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $78.89, for a total transaction of $99,716.96. Following the completion of the transaction, the director directly owned 28,108 shares of the company's stock, valued at $2,217,440.12. This represents a 4.30% 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. Insiders sold 84,625 shares of company stock worth $6,024,953 over the last 90 days. 7.30% of the stock is currently owned by corporate insiders.

RingCentral Price Performance

Shares of RingCentral stock opened at $83.46 on Monday. The stock has a market capitalization of $6.97 billion, a price-to-earnings ratio of 11.04, a price-to-earnings-growth ratio of 1.44 and a beta of 1.10. The business has a 50-day moving average of $74.01 and a 200 day moving average of $54.35. RingCentral, Inc. has a 12 month low of $24.14 and a 12 month high of $98.14.

RingCentral (NYSE:RNG - Get Free Report) last issued its quarterly earnings results on Thursday, October 22nd. The software maker reported $1.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.28 by $0.05. RingCentral had a net margin of 25.27% and a negative return on equity of 50.15%. The company had revenue of $676.04 million for the quarter, compared to analyst estimates of $667.30 million. During the same period in the prior year, the firm earned $1.13 earnings per share. The business's revenue for the quarter was up 5.8% compared to the same quarter last year. Equities research analysts anticipate that RingCentral, Inc. will post 2.89 earnings per share for the current year.

RingCentral Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be issued a dividend of $0.1250 per share. The ex-dividend date is Friday, November 6th. This represents a $0.50 dividend on an annualized basis and a yield of 0.6%. RingCentral's dividend payout ratio is 6.61%.

RingCentral Company Profile

RingCentral, Inc is a provider of cloud-based business communications and collaboration solutions. Its platform enables organizations to manage business phone services, team messaging, video meetings, contact center operations and other communications through internet-based applications rather than traditional on-premises systems.

The company's offerings include RingEX, a unified communications platform that combines voice, messaging and video; RingCentral Video for online meetings and collaboration; and RingCX, a cloud contact center solution.

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