RingCentral (NYSE:RNG) Shares Gap Up After Strong Earnings

Key Points

• RingCentral shares jumped after quarterly results beat expectations: EPS was $1.33 versus $1.28 expected, while revenue reached $676.04 million, up 5.8% year over year and above the $667.30 million consensus.
• The company raised its outlook, projecting fourth-quarter EPS of $1.32–$1.37 and full-year 2026 EPS of $5.07–$5.12, both ahead of analyst estimates; full-year revenue guidance was also increased to approximately $2.7 billion.
• RingCentral declared a quarterly dividend of $0.125 per share, or $0.50 annualized, yielding about 0.6%. Analysts remain mixed, with the stock carrying a “Hold” consensus and an average price target of $86.75, while a shareholder investigation creates a legal overhang.

RingCentral, Inc. (NYSE:RNG - Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $79.42, but opened at $90.98. RingCentral shares last traded at $83.2420, with a volume of 726,591 shares changing hands.

The software maker reported $1.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.28 by $0.05. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. The business had revenue of $676.04 million during the quarter, compared to analysts' expectations of $667.30 million. During the same period in the prior year, the company earned $1.13 EPS. The firm's quarterly revenue was up 5.8% compared to the same quarter last year.

RingCentral Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, November 6th will be issued a $0.1250 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Friday, November 6th. RingCentral's dividend payout ratio (DPR) is 40.00%.

RingCentral News Summary

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

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported third-quarter EPS of $1.33, above the $1.28 consensus estimate, while revenue of $676.04 million exceeded expectations of $667.30 million and increased 5.8% year over year. EPS also rose from $1.13 in the prior-year quarter. RingCentral third-quarter earnings report
• Positive Sentiment: The company raised fourth-quarter guidance to EPS of $1.32–$1.37, well above the $1.24 consensus, and revenue of $673 million–$680 million versus expectations of $672.6 million. RingCentral fourth-quarter guidance
• Positive Sentiment: Full-year 2026 EPS guidance increased to $5.07–$5.12, compared with the $4.61 consensus, while revenue guidance of approximately $2.7 billion topped the $2.6 billion estimate. RingCentral raises 2026 outlook
• Positive Sentiment: Coverage highlighted improving cash flow, margin expansion and stronger monetization of RingCentral’s AI offerings, supporting the case for better operating leverage. RingCentral Q3 2026 AI monetization
• Positive Sentiment: Analysts raised their price targets: Morgan Stanley increased its target to $91 while maintaining an “equal weight” rating, and Needham raised its target to $110 with a “buy” rating. Analyst price-target changes
• Neutral Sentiment: RingCentral announced a quarterly dividend of $0.125 per share, equivalent to a $0.50 annualized payout and a modest 0.5% yield. RingCentral dividend and partnership news
• Negative Sentiment: Levi & Korsinsky announced an investigation into possible breaches of fiduciary duties by certain RingCentral officers and directors, creating a legal and governance overhang. RingCentral shareholder investigation

Analysts Set New Price Targets

A number of equities analysts recently commented on RNG shares. Oppenheimer reaffirmed an "outperform" rating and issued a $110.00 price objective on shares of RingCentral in a research note on Friday. Piper Sandler reissued a "neutral" rating and issued a $94.00 price objective on shares of RingCentral in a research note on Friday. Wells Fargo & Company boosted their price objective on RingCentral from $43.00 to $65.00 and gave the company an "equal weight" rating in a research note on Tuesday, August 25th. Robert W. Baird set a $95.00 target price on RingCentral in a research report on Friday. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a $75.00 target price on shares of RingCentral in a research note on Friday. Five equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $86.75.

Insider Buying and Selling at RingCentral

In other RingCentral news, CFO Vaibhav Agarwal sold 7,046 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $72.10, for a total transaction of $508,016.60. Following the completion of the sale, the chief financial officer directly owned 146,700 shares of the company's stock, valued at approximately $10,577,070. The trade was a 4.58% decrease in their position. The sale was disclosed in a document filed 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, COO Kira Makagon sold 36,185 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $70.11, for a total value of $2,536,930.35. Following the completion of the sale, the chief operating officer directly owned 245,385 shares of the company's stock, valued at $17,203,942.35. The trade was a 12.85% 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. Insiders sold 84,625 shares of company stock valued at $6,024,953 over the last 90 days. Insiders own 7.30% of the company's stock.

Hedge Funds Weigh In On RingCentral

Hedge funds have recently modified their holdings of the company. WealthCollab LLC boosted its position in 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. Fortitude Family Office LLC raised its position in shares of RingCentral by 128.1% in the third quarter. Fortitude Family Office LLC now owns 349 shares of the software maker's stock valued at $26,000 after purchasing an additional 196 shares during the period. Meeder Asset Management Inc. lifted 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 worth $27,000 after acquiring an additional 410 shares in the last quarter. Rockefeller Capital Management L.P. increased its holdings in RingCentral by 70.5% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock worth $30,000 after acquiring an additional 424 shares during the period. Finally, Elevation Wealth Partners LLC raised its holdings in shares of RingCentral by 119.3% in the 3rd quarter. Elevation Wealth Partners LLC now owns 546 shares of the software maker's stock valued at $41,000 after acquiring an additional 297 shares in the last quarter. Institutional investors own 98.61% of the company's stock.

RingCentral Stock Up 7.5%

The company's 50-day moving average is $73.63 and its two-hundred day moving average is $54.03. The company has a market capitalization of $7.13 billion, a P/E ratio of 68.27, a PEG ratio of 1.43 and a beta of 1.10.

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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