RingCentral (NYSE:RNG) Shares Break Above Fifty Day Moving Average - What's Next?

Key Points

• RingCentral shares moved above their 50-day moving average, reaching $76.12 before last trading at about $74.30, compared with a 50-day average of $66.28.
• Analyst sentiment remains mixed, with a consensus “Hold” rating from four Buy and eight Hold ratings; the average price target is $56, below the current share price.
• RingCentral exceeded quarterly expectations with adjusted EPS of $1.22 versus a $1.16 estimate and revenue of $657.01 million. The company also raised its quarterly dividend to $0.125 per share, or $0.50 annually.

RingCentral, Inc. (NYSE:RNG - Get Free Report)'s share price passed above its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $66.28 and traded as high as $76.12. RingCentral shares last traded at $74.2980, with a volume of 1,489,156 shares changing hands.

Wall Street Analyst Weigh In

RNG has been the topic of several recent analyst reports. Royal Bank Of Canada started coverage on RingCentral in a research report on Thursday, September 3rd. They set an "outperform" rating and a $85.00 target price on the stock. Piper Sandler lifted their price target on RingCentral from $40.00 to $43.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Rosenblatt Securities reaffirmed a "buy" rating and set a $50.00 price objective on shares of RingCentral in a research note on Friday, July 24th. Weiss Ratings reiterated a "hold (c)" rating on shares of RingCentral in a report on Friday, July 17th. Finally, Mizuho increased their price objective on shares of RingCentral from $38.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, July 24th. Four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $56.00.

RingCentral Stock Down 2.4%

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

The stock has a market cap of $6.20 billion, a price-to-earnings ratio of 59.44, a PEG ratio of 1.32 and a beta of 1.14. The stock has a fifty day moving average of $66.28 and a two-hundred day moving average of $49.12.

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 firm had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The firm's quarterly revenue was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.06 earnings per share. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. Equities research analysts anticipate 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. Stockholders of record on Thursday, August 6th were issued a dividend of $0.1250 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Thursday, August 6th. This is an increase from RingCentral's previous quarterly dividend of $0.0750. RingCentral's dividend payout ratio (DPR) is presently 40.00%.

Insider Buying and Selling at RingCentral

In other RingCentral news, CFO Vaibhav Agarwal sold 7,046 shares of RingCentral stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $72.10, for a total transaction of $508,016.60. Following the transaction, the chief financial officer directly owned 146,700 shares of the company's stock, valued at $10,577,070. The trade was a 4.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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. Also, CEO Vladimir Shmunis sold 11,165 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $76.58, for a total transaction of $855,015.70. Following the sale, the chief executive officer owned 179,106 shares of the company's stock, valued at approximately $13,715,937.48. This represents a 5.87% 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 sold a total of 87,156 shares of company stock worth $6,078,491 in the last quarter. Company insiders own 7.30% of the company's stock.

Hedge Funds Weigh In On RingCentral

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Integrated Wealth Concepts LLC purchased a new stake in RingCentral during the 2nd quarter worth $113,000. IFP Advisors Inc raised its position in RingCentral by 2,597.9% in the second quarter. IFP Advisors Inc now owns 99,068 shares of the software maker's stock valued at $3,862,000 after purchasing an additional 95,396 shares during the period. Baird Financial Group Inc. lifted its stake in shares of RingCentral by 7.7% during the second quarter. Baird Financial Group Inc. now owns 254,432 shares of the software maker's stock worth $9,918,000 after purchasing an additional 18,220 shares in the last quarter. Nykredit A S acquired a new position in shares of RingCentral during the second quarter worth about $63,000. Finally, Corient Private Wealth LP boosted its position in shares of RingCentral by 144.3% in 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 during the period. Institutional investors and hedge funds 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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