RingCentral (NYSE:RNG) Hits New 12-Month High - Should You Buy?

Key Points

• RingCentral shares reached a new 52-week high of $70.78, substantially above their 50-day and 200-day moving averages. The stock has a $5.88 billion market capitalization and trades at a P/E ratio of 56.32.
• Analyst sentiment remains mixed: three analysts rate RingCentral a Buy and eight rate it a Hold, producing a consensus Hold rating and a $53.10 price target—below the current share price.
• RingCentral exceeded quarterly earnings and revenue expectations, reporting $1.22 in EPS and $657.01 million in revenue, while revenue grew 5.9% year over year. The company also increased its quarterly dividend to $0.125 per share, although insiders sold shares during the latest quarter.

RingCentral, Inc. (NYSE:RNG - Get Free Report) shares reached a new 52-week high during trading on Wednesday . The company traded as high as $70.78 and last traded at $70.40, with a volume of 2013627 shares trading hands. The stock had previously closed at $69.62.

Wall Street Analysts Forecast Growth

RNG has been the topic of several recent research reports. Rosenblatt Securities reaffirmed a "buy" rating and issued a $50.00 price target on shares of RingCentral in a research note on Friday, July 24th. Mizuho raised their price objective on RingCentral from $38.00 to $40.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. Needham & Company LLC boosted their target price on shares of RingCentral from $55.00 to $85.00 and gave the company a "buy" rating in a report on Friday, August 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of RingCentral in a research report on Friday, July 17th. Finally, Jefferies Financial Group reiterated a "hold" rating and issued a $40.00 price target on shares of RingCentral in a research note on Saturday, May 9th. Three investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, RingCentral has a consensus rating of "Hold" and a consensus price target of $53.10.

RingCentral Stock Performance

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

The company has a market cap of $5.88 billion, a P/E ratio of 56.32, a price-to-earnings-growth ratio of 1.20 and a beta of 1.14. The stock has a 50-day moving average of $52.59 and a two-hundred day moving average of $43.69.

RingCentral (NYSE:RNG - Get Free Report) last released its earnings results on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, topping the consensus estimate of $1.16 by $0.06. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The business had revenue of $657.01 million for the quarter, compared to the consensus estimate of $650.53 million. During the same period in the previous year, the company posted $1.06 earnings per share. The company's revenue for the quarter was up 5.9% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. Research analysts predict that RingCentral, Inc. will post 2.89 EPS for the current year.

RingCentral Increases Dividend

The company 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. This is a positive change from RingCentral's previous quarterly dividend of $0.07. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $0.50 annualized dividend and a yield of 0.7%. RingCentral's payout ratio is currently 40.00%.

Insider Activity

In other RingCentral news, Director Robert I. Theis sold 2,530 shares of RingCentral stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $40.28, for a total value of $101,908.40. Following the completion of the transaction, the director directly owned 30,834 shares of the company's stock, valued at approximately $1,241,993.52. The trade was a 7.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Agarwal sold 4,044 shares of RingCentral stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $65.07, for a total transaction of $263,143.08. Following the completion of the transaction, the chief financial officer directly owned 161,048 shares of the company's stock, valued at $10,479,393.36. This trade represents a 2.45% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 12,078 shares of company stock valued at $694,918 in the last quarter. 7.30% of the stock is owned by company insiders.

Institutional Trading of RingCentral

Several institutional investors have recently added to or reduced their stakes in RNG. WealthCollab LLC raised its stake in shares of RingCentral by 59.7% in the first quarter. WealthCollab LLC now owns 693 shares of the software maker's stock worth $26,000 after purchasing an additional 259 shares during the last quarter. Meeder Asset Management Inc. boosted its position in shares of RingCentral by 127.3% during the first quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker's stock valued at $27,000 after buying an additional 410 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of RingCentral by 269.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker's stock valued at $29,000 after buying an additional 738 shares during the last quarter. Rockefeller Capital Management L.P. increased its holdings in RingCentral by 70.5% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock worth $30,000 after buying an additional 424 shares in the last quarter. Finally, Harvest Fund Management Co. Ltd bought a new stake in RingCentral in the 3rd quarter worth about $30,000. 98.61% of the stock is currently owned by hedge funds and other institutional investors.

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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