RingCentral (NYSE:RNG) Reaches New 1-Year High - Here's Why

Key Points

• RingCentral shares reached a new 52-week high of $78.50, while analysts remained mixed: four rated the stock a Buy and eight a Hold, producing an overall “Hold” rating and an average price target of $56.
• The company beat quarterly expectations with adjusted EPS of $1.22 versus the $1.16 consensus and revenue of $657.01 million, up 5.9% year over year. RingCentral also increased its quarterly dividend to $0.125 per share.
• Institutional investors own approximately 98.61% of RingCentral’s shares, while insiders sold 87,156 shares worth about $6.08 million over the last quarter.

RingCentral, Inc. (NYSE:RNG - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The company traded as high as $78.50 and last traded at $78.2350, with a volume of 160097 shares changing hands. The stock had previously closed at $77.30.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Weiss Ratings restated a "hold (c)" rating on shares of RingCentral in a research report on Friday, July 17th. Oppenheimer boosted their price target on shares of RingCentral from $50.00 to $85.00 and gave the stock an "outperform" rating in a research note on Tuesday, September 1st. Mizuho increased their price target on shares of RingCentral from $38.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, July 24th. Rosenblatt Securities restated a "buy" rating and issued a $50.00 price objective on shares of RingCentral in a research report on Friday, July 24th. Finally, Wells Fargo & Company lifted their price objective on RingCentral from $43.00 to $65.00 and gave the company an "equal weight" rating in a report on Tuesday, August 25th. Four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $56.00.

RingCentral Price Performance

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

The firm's 50-day simple moving average is $61.88 and its two-hundred day simple moving average is $47.55. The company has a market capitalization of $6.45 billion, a price-to-earnings ratio of 61.77, a price-to-earnings-growth ratio of 1.24 and a beta of 1.14.

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

RingCentral Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were given a dividend of $0.125 per share. The ex-dividend date was Thursday, August 6th. This is a positive change from RingCentral's previous quarterly dividend of $0.07. This represents a $0.50 dividend on an annualized basis and a yield of 0.6%. RingCentral's dividend payout ratio (DPR) is presently 40.00%.

Insiders Place Their Bets

In other news, Director Robert Theis sold 2,530 shares of RingCentral stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $40.28, for a total transaction of $101,908.40. Following the completion of the transaction, the director owned 30,834 shares of the company's stock, valued at $1,241,993.52. The trade was a 7.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tarun Arora sold 4,172 shares of the business's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $70.36, for a total transaction of $293,541.92. Following the completion of the sale, the chief accounting officer owned 65,692 shares in the company, valued at $4,622,089.12. This represents a 5.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 87,156 shares of company stock valued at $6,078,491. Company insiders own 7.30% of the company's stock.

Institutional Trading of RingCentral

Several institutional investors and hedge funds have recently modified their holdings of the business. Integrated Wealth Concepts LLC purchased a new position in shares of RingCentral during the 2nd quarter worth approximately $113,000. IFP Advisors Inc lifted its stake in RingCentral by 2,597.9% in the 2nd quarter. IFP Advisors Inc now owns 99,068 shares of the software maker's stock valued at $3,862,000 after buying an additional 95,396 shares in the last quarter. Baird Financial Group Inc. grew its holdings in RingCentral by 7.7% during the 2nd quarter. Baird Financial Group Inc. now owns 254,432 shares of the software maker's stock valued at $9,918,000 after buying an additional 18,220 shares during the last quarter. Nykredit A S purchased a new position in RingCentral during the second quarter worth $63,000. Finally, Corient Private Wealth LP increased its position in RingCentral by 144.3% during the second quarter. Corient Private Wealth LP now owns 250,095 shares of the software maker's stock worth $9,749,000 after buying an additional 147,710 shares in the last quarter. Hedge funds and other institutional investors own 98.61% of the company's stock.

RingCentral Company Profile

RingCentral, Inc is a cloud communications and collaboration company that provides business communications software through a subscription-based platform. Its services are designed to help organizations manage voice, messaging, video meetings, team collaboration and other communications across devices and locations.

The company's offerings include RingEX, its unified communications platform; RingCentral Video for online meetings and collaboration; RingCentral Events for virtual and hybrid events; and contact center products, including RingCX.

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