RingCentral (NYSE:RNG) Reaches New 52-Week High Following Analyst Upgrade

Key Points

• RingCentral shares reached a new 52-week high after Rosenblatt Securities raised its price target from $80 to $105 and maintained a buy rating.
• Analyst views remain mixed: six analysts rate the stock a buy and eight a hold, with a consensus rating of “Hold” and an average price target of $93.92. Oppenheimer set the highest target at $110.
• RingCentral exceeded quarterly expectations, reporting $1.33 in earnings per share versus $1.28 expected and $676.04 million in revenue, up 5.8% year over year.

RingCentral, Inc. (NYSE:RNG - Get Free Report) shares hit a new 52-week high on Monday after Rosenblatt Securities raised their price target on the stock from $80.00 to $105.00. Rosenblatt Securities currently has a buy rating on the stock. RingCentral traded as high as $98.14 and last traded at $83.5760, with a volume of 4,623,082 shares trading hands. The stock had previously closed at $83.39.

A number of other analysts have also weighed in on the stock. Wells Fargo & Company upped their price target on shares of RingCentral from $65.00 to $85.00 and gave the stock an "equal weight" rating in a research note on Friday. UBS Group set a $91.00 target price on shares of RingCentral in a report on Friday. Jefferies Financial Group raised their price target on shares of RingCentral from $40.00 to $75.00 and gave the stock a "hold" rating in a research report on Friday. Oppenheimer boosted their target price on shares of RingCentral from $85.00 to $110.00 and gave the company an "outperform" rating in a research note on Friday. Finally, Piper Sandler boosted their target price on shares of RingCentral from $43.00 to $94.00 and gave the stock a "neutral" rating in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $93.92.

Insiders Place Their Bets

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

In other news, Director Amy Shenkan sold 1,264 shares of RingCentral stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $78.89, for a total value of $99,716.96. Following the completion of the sale, the director owned 28,108 shares in the company, valued at $2,217,440.12. The trade was a 4.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tarun Arora sold 4,172 shares of the company's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $70.36, for a total value of $293,541.92. Following the completion of the transaction, the chief accounting officer owned 65,692 shares of the company's stock, valued at $4,622,089.12. This trade represents a 5.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 84,625 shares of company stock worth $6,024,953 over the last three months. 7.30% of the stock is currently owned by corporate insiders.

RingCentral News Summary

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: Rosenblatt Securities raised its price target to $105 from $80 and upgraded RingCentral to “buy.” The new target implies approximately 25.8% upside from the referenced $83.46 share price, reinforcing bullish analyst sentiment.
• Positive Sentiment: RingCentral’s latest quarterly results exceeded expectations, with earnings of $1.33 per share versus the $1.28 consensus estimate and revenue of $676.04 million versus $667.30 million expected. Revenue rose 5.8% year over year, while earnings increased from $1.13 per share in the comparable period.
• Positive Sentiment: Analyst commentary highlights higher 2026 guidance, expanding margins, and progress in AI-enabled products as reasons to raise fair-value estimates and price targets. Morgan Stanley, Wells Fargo, and Needham also issued favorable outlooks for RingCentral. RingCentral Gains Fresh Attention As AI Progress And Higher Guidance Test Valuation
• Positive Sentiment: Some analysts and financial commentators believe the stock remains undervalued despite having approximately tripled year to date, arguing that the earnings performance and AI opportunity support additional upside. RingCentral: Even After The Surge, This AI-Driven Stock Remains Cheap
• Neutral Sentiment: The sharp rally has made valuation a more important consideration. Although bullish analysts see further upside, the stock’s performance now depends on RingCentral converting AI investments, margin improvements, and raised guidance into sustained growth. RingCentral Stock Fair Value Rises After Analysts Lift Views On AI And Margins

Hedge Funds Weigh In On RingCentral

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Access Investment Management LLC purchased a new position in shares of RingCentral during the 3rd quarter valued at about $7,793,000. Signaturefd LLC increased its position in RingCentral by 77.2% during the 3rd quarter. Signaturefd LLC now owns 1,552 shares of the software maker's stock valued at $116,000 after purchasing an additional 676 shares during the period. Bond & Devick Financial Network Inc. bought a new position in shares of RingCentral during the 3rd quarter worth approximately $224,000. Citizens Financial Group Inc. RI acquired a new stake in RingCentral in the 3rd quarter worth approximately $311,000. Finally, Fifth Third Wealth Advisors LLC purchased a new position in RingCentral during the 3rd quarter worth approximately $246,000. 98.61% of the stock is owned by institutional investors.

RingCentral Price Performance

The stock has a market capitalization of $6.90 billion, a PE ratio of 11.06, a P/E/G ratio of 1.44 and a beta of 1.10. The stock's fifty day moving average is $74.01 and its 200-day moving average is $54.35.

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

RingCentral Announces Dividend

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

About RingCentral

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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