RingCentral (NYSE:RNG) Reaches New 52-Week High - Here's What Happened

Key Points

• RingCentral shares reached a new 52-week high, trading as high as $68.88 and last changing hands around $69.08, up 1.8% from the prior close.
• Recent quarterly results exceeded expectations, with adjusted EPS of $1.22 versus the $1.16 consensus and revenue of $657.01 million versus estimates of $650.53 million. Revenue increased 5.9% year over year.
• Despite the rally, analysts maintain a consensus “Hold” rating and a $46.60 price target, well below the current share price; the company also raised its quarterly dividend to $0.125 from $0.07.

RingCentral, Inc. (NYSE:RNG - Get Free Report)'s share price reached a new 52-week high during trading on Thursday . The company traded as high as $68.88 and last traded at $69.0770, with a volume of 196093 shares traded. The stock had previously closed at $66.06.

Analyst Ratings Changes

RNG has been the topic of several research analyst reports. Robert W. Baird set a $45.00 price objective on RingCentral in a research note on Friday, May 8th. Wells Fargo & Company boosted their target price on RingCentral from $43.00 to $65.00 and gave the stock an "equal weight" rating in a research note on Tuesday. Mizuho increased their target price on shares of RingCentral from $38.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, July 24th. Weiss Ratings restated a "hold (c)" rating on shares of RingCentral in a research note on Friday, July 17th. Finally, Morgan Stanley lifted their price target on shares of RingCentral from $33.00 to $40.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Three research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, RingCentral presently has a consensus rating of "Hold" and a consensus price target of $46.60.

RingCentral Trading Up 1.8%

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

The firm's 50-day moving average is $49.85 and its 200 day moving average is $42.52. The firm has a market capitalization of $5.61 billion, a price-to-earnings ratio of 53.82, a P/E/G ratio of 1.14 and a beta of 1.10.

RingCentral (NYSE:RNG - Get Free Report) last posted its earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share 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 analyst estimates 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% compared to the same quarter last year. During the same period in the previous year, the firm posted $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. Analysts predict that RingCentral, Inc. will post 2.89 EPS for the current year.

RingCentral Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Thursday, August 6th were paid a $0.125 dividend. This is a positive change from RingCentral's previous quarterly dividend of $0.07. This represents a $0.50 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Thursday, August 6th. RingCentral's payout ratio is presently 40.00%.

Insider Buying and Selling

In other RingCentral news, CAO Tarun Arora sold 675 shares of RingCentral stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $67.45, for a total transaction of $45,528.75. Following the transaction, the chief accounting officer directly owned 79,709 shares of the company's stock, valued at approximately $5,376,372.05. The trade was a 0.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert I. Theis sold 2,530 shares of the company's 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 sale, the director owned 30,834 shares in the company, valued at $1,241,993.52. This trade represents a 7.58% decrease in their position. 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. Over the last three months, insiders have sold 22,740 shares of company stock valued at $1,175,723. Company insiders own 7.30% of the company's stock.

Hedge Funds Weigh In On RingCentral

A number of hedge funds and other institutional investors have recently made changes to their positions in RNG. Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new stake in shares of RingCentral during the 1st quarter valued at about $697,000. Robertson Stephens Wealth Management LLC grew its stake in RingCentral by 124.7% during the fourth quarter. Robertson Stephens Wealth Management LLC now owns 90,311 shares of the software maker's stock worth $2,608,000 after purchasing an additional 50,122 shares during the period. LSV Asset Management increased its holdings in RingCentral by 142.4% in the fourth quarter. LSV Asset Management now owns 2,871,700 shares of the software maker's stock worth $82,935,000 after purchasing an additional 1,686,900 shares in the last quarter. Jupiter Asset Management Ltd. increased its holdings in RingCentral by 11.4% in the fourth quarter. Jupiter Asset Management Ltd. now owns 1,456,270 shares of the software maker's stock worth $42,057,000 after purchasing an additional 149,532 shares in the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. lifted its stake in RingCentral by 60.0% in the fourth quarter. Harel Insurance Investments & Financial Services Ltd. now owns 280,323 shares of the software maker's stock valued at $8,096,000 after buying an additional 105,145 shares during the period. 98.61% of the stock is owned by institutional investors and hedge funds.

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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