Insider Selling: RingCentral (NYSE:RNG) CFO Sells 7,047 Shares of Stock

Key Points

• RingCentral CFO Vaibhav Agarwal sold 7,047 shares on June 2 at an average price of $46.17, totaling about $325,360. The sale was made under a pre-arranged Rule 10b5-1 plan to cover tax withholding tied to vesting equity awards.
• After the transaction, Agarwal still directly owned 169,282 shares worth about $7.82 million, representing a 4% reduction in his position. He has also sold additional RingCentral shares in recent weeks.
• RingCentral reported solid quarterly results, beating EPS and revenue estimates, and it recently raised its full-year guidance. The stock traded around $46.35 amid a consensus Hold rating from analysts.

RingCentral, Inc. (NYSE:RNG - Get Free Report) CFO Vaibhav Agarwal sold 7,047 shares of the business's stock in a transaction 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 completion of the sale, the chief financial officer directly owned 169,282 shares in the company, valued at approximately $7,815,749.94. This represents a 4.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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.

Vaibhav Agarwal also recently made the following trade(s):

• On Thursday, May 21st, Vaibhav Agarwal sold 4,044 shares of RingCentral stock. The shares were sold at an average price of $42.06, for a total value of $170,090.64.
• On Monday, May 18th, Vaibhav Agarwal sold 2,220 shares of RingCentral stock. The shares were sold at an average price of $40.62, for a total transaction of $90,176.40.

RingCentral Stock Performance

Shares of NYSE:RNG traded down $2.75 on Tuesday, hitting $46.35. The stock had a trading volume of 2,171,264 shares, compared to its average volume of 1,995,598. RingCentral, Inc. has a twelve month low of $23.59 and a twelve month high of $49.85. The firm's 50 day moving average price is $40.29 and its 200-day moving average price is $33.85. The company has a market capitalization of $3.89 billion, a price-to-earnings ratio of 49.31, a price-to-earnings-growth ratio of 1.44 and a beta of 1.14.

RingCentral (NYSE:RNG - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The software maker reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03. The firm had revenue of $644.20 million for 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%. The company's quarterly revenue was up 5.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.00 earnings per share. 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, sell-side analysts predict that RingCentral, Inc. will post 2.79 EPS for the current year.

RingCentral Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Tuesday, June 2nd will be issued a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Tuesday, June 2nd. RingCentral's dividend payout ratio is presently 31.91%.

Hedge Funds Weigh In On RingCentral

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in RingCentral by 1.1% in the third quarter. Vanguard Group Inc. now owns 11,823,636 shares of the software maker's stock valued at $335,082,000 after acquiring an additional 129,444 shares during the last quarter. Capital World Investors lifted its stake in RingCentral by 20.9% in the third quarter. Capital World Investors now owns 11,735,991 shares of the software maker's stock valued at $332,598,000 after buying an additional 2,031,861 shares during the period. LSV Asset Management lifted its stake in RingCentral by 142.4% in the fourth 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. AQR Capital Management LLC lifted its stake in RingCentral by 35.4% in the fourth quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker's stock valued at $57,874,000 after buying an additional 523,966 shares during the period. Finally, Quantinno Capital Management LP lifted its stake in RingCentral by 150.4% in the first 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. Institutional investors own 98.61% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on RNG shares. Mizuho increased their target price on RingCentral from $27.00 to $32.00 and gave the stock a "neutral" rating in a report on Friday, February 20th. Oppenheimer restated an "outperform" rating and set a $50.00 target price on shares of RingCentral in a report on Friday, May 8th. Needham & Company LLC increased their target price on RingCentral from $36.00 to $55.00 and gave the stock a "buy" rating in a report on Friday, March 13th. Jefferies Financial Group restated a "hold" rating and set a $40.00 target price on shares of RingCentral in a report on Saturday, May 9th. Finally, Weiss Ratings upgraded RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 2nd. Three investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, RingCentral has a consensus rating of "Hold" and a consensus target price of $43.00.

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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