Insider Selling: RingCentral (NYSE:RNG) CAO Sells $45,528.75 in Stock

Key Points

• RingCentral CAO Tarun Arora sold 675 shares at an average price of $67.45, totaling $45,528.75. The transaction was conducted under a pre-arranged Rule 10b5-1 plan and left him with 79,709 shares.
• RingCentral shares traded at $65.49, near their 12-month high of $68.45, while the company reported quarterly EPS and revenue above analyst expectations and year-over-year revenue growth of 5.9%.
• The company increased its quarterly dividend to $0.125 per share, or $0.50 annually, for a 0.8% yield. Analysts maintain a consensus “Hold” rating with an average price target of $46.60.

RingCentral, Inc. (NYSE:RNG - Get Free Report) CAO Tarun Arora sold 675 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $67.45, for a total transaction of $45,528.75. Following the sale, the chief accounting officer directly owned 79,709 shares in the company, valued at $5,376,372.05. This trade represents a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Tarun Arora also recently made the following trade(s):

• On Friday, August 21st, Tarun Arora sold 1,876 shares of RingCentral stock. The stock was sold at an average price of $65.26, for a total transaction of $122,427.76.
• On Friday, May 29th, Tarun Arora sold 3,615 shares of RingCentral stock. The shares were sold at an average price of $43.00, for a total transaction of $155,445.00.

RingCentral Price Performance

Shares of NYSE:RNG traded down $1.59 during trading on Tuesday, reaching $65.49. 1,488,592 shares of the company's stock traded hands, compared to its average volume of 1,830,626. The stock has a market capitalization of $5.47 billion, a P/E ratio of 52.40, a price-to-earnings-growth ratio of 1.16 and a beta of 1.10. RingCentral, Inc. has a 12 month low of $24.14 and a 12 month high of $68.45. The company has a 50 day moving average of $49.23 and a 200-day moving average of $42.23.

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

RingCentral (NYSE:RNG - Get Free Report) last issued its earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.16 by $0.06. The firm had revenue of $657.01 million for the quarter, compared to analysts' expectations of $650.53 million. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. RingCentral's revenue was up 5.9% on a year-over-year basis. During the same quarter last 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. Equities research analysts predict that RingCentral, Inc. will post 2.88 earnings per share for the current fiscal year.

RingCentral Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Thursday, August 6th were given a dividend of $0.125 per share. The ex-dividend date was Thursday, August 6th. This represents a $0.50 dividend on an annualized basis and a yield of 0.8%. This is an increase from RingCentral's previous quarterly dividend of $0.07. RingCentral's payout ratio is presently 40.00%.

Institutional Trading of RingCentral

Several hedge funds have recently added to or reduced their stakes in RNG. California State Teachers Retirement System lifted its holdings in RingCentral by 3,720.4% in the second quarter. California State Teachers Retirement System now owns 3,166,501 shares of the software maker's stock worth $123,430,000 after purchasing an additional 3,083,616 shares during the period. Alyeska Investment Group L.P. bought a new position in RingCentral in the 3rd quarter valued at about $53,365,000. LSV Asset Management increased its stake in RingCentral by 142.4% during the 4th quarter. LSV Asset Management now owns 2,871,700 shares of the software maker's stock valued at $82,935,000 after buying an additional 1,686,900 shares during the period. Quantinno Capital Management LP increased its stake in RingCentral by 150.4% during the 1st quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker's stock valued at $73,524,000 after buying an additional 1,187,437 shares during the period. Finally, AQR Capital Management LLC raised its position in shares of RingCentral by 35.4% during the 4th quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker's stock worth $57,874,000 after buying an additional 523,966 shares in the last quarter. Institutional investors own 98.61% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on RNG shares. Jefferies Financial Group reaffirmed a "hold" rating and issued a $40.00 target price on shares of RingCentral in a research report on Saturday, May 9th. Robert W. Baird set a $45.00 price target on shares of RingCentral in a research report on Friday, May 8th. Morgan Stanley increased their price objective on shares of RingCentral from $33.00 to $40.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Needham & Company LLC reiterated a "buy" rating on shares of RingCentral in a research report on Monday, July 20th. Finally, Oppenheimer reissued an "outperform" rating and set a $50.00 target price on shares of RingCentral in a research note on Friday, May 8th. Three analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $46.60.

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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