RingCentral, Inc. (NYSE:RNG) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts are cautious on RingCentral. The stock has an average rating of "Hold" from 12 brokerages, with nine holds and three buys. The average 12-month price target is $43.00.
• RingCentral beat earnings expectations in its latest quarter. It reported $1.20 EPS versus the $1.17 consensus and revenue of $644.2 million, with sales up 5.3% from a year earlier. The company also issued FY2026 and Q2 2026 guidance above current expectations.
• Insiders have recently sold shares, while institutions remain heavily invested. The CFO and CAO both sold stock under pre-arranged plans, and insiders sold 41,656 shares in the last quarter. Meanwhile, institutional investors own 98.61% of the company.

Shares of RingCentral, Inc. (NYSE:RNG - Get Free Report) have been given an average rating of "Hold" by the twelve brokerages that are presently covering the company, Marketbeat.com reports. Nine analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 12-month price target among analysts that have covered the stock in the last year is $43.00.

Several analysts recently weighed in on the stock. Robert W. Baird set a $45.00 target price on shares of RingCentral in a report on Friday, May 8th. Piper Sandler raised their target price on shares of RingCentral from $28.00 to $37.00 and gave the company a "neutral" rating in a report on Monday, February 23rd. Wells Fargo & Company raised their target price on shares of RingCentral from $32.00 to $43.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. Needham & Company LLC raised their target price on shares of RingCentral from $36.00 to $55.00 and gave the company a "buy" rating in a report on Friday, March 13th. Finally, Weiss Ratings raised shares of RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 2nd.

RingCentral Price Performance

Shares of RNG stock opened at $39.30 on Wednesday. The firm has a market cap of $3.30 billion, a PE ratio of 41.81, a price-to-earnings-growth ratio of 1.20 and a beta of 1.14. The company has a 50-day moving average of $41.00 and a two-hundred day moving average of $34.52. RingCentral has a 1-year low of $23.59 and a 1-year high of $49.85.

RingCentral (NYSE:RNG - Get Free Report) last announced its earnings results on Thursday, May 7th. The software maker reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03. The company had revenue of $644.20 million during the quarter, compared to analyst estimates of $642.73 million. RingCentral had a net margin of 3.31% and a negative return on equity of 33.75%. RingCentral's revenue was up 5.3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.00 earnings per share. RingCentral has set its FY 2026 guidance at 4.850-5.010 EPS and its Q2 2026 guidance at 1.150-1.170 EPS. Sell-side analysts anticipate that RingCentral will post 2.79 EPS for the current fiscal year.

RingCentral Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Tuesday, June 2nd will be issued a dividend of $0.075 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $0.30 dividend on an annualized basis and a yield of 0.8%. RingCentral's dividend payout ratio (DPR) is presently 31.91%.

Insiders Place Their Bets

In other RingCentral news, CAO Tarun Arora sold 3,615 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $43.00, for a total transaction of $155,445.00. Following the sale, the chief accounting officer owned 68,100 shares of the company's stock, valued at approximately $2,928,300. This trade represents a 5.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Vaibhav Agarwal sold 7,047 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $46.17, for a total transaction of $325,359.99. Following the sale, the chief financial officer directly owned 169,282 shares in the company, valued at approximately $7,815,749.94. The trade was a 4.00% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 41,656 shares of company stock valued at $1,780,310. 7.30% of the stock is owned by corporate insiders.

Institutional Trading of RingCentral

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. WealthCollab LLC raised its holdings in RingCentral by 59.7% during the first quarter. WealthCollab LLC now owns 693 shares of the software maker's stock worth $26,000 after purchasing an additional 259 shares in the last quarter. Pictet Asset Management Holding SA raised its holdings in RingCentral by 3.1% during the first quarter. Pictet Asset Management Holding SA now owns 11,883 shares of the software maker's stock worth $442,000 after purchasing an additional 362 shares in the last quarter. Rothschild Investment LLC raised its holdings in RingCentral by 15.8% during the fourth quarter. Rothschild Investment LLC now owns 2,681 shares of the software maker's stock worth $77,000 after purchasing an additional 366 shares in the last quarter. Sovereign Financial Group Inc. raised its holdings in RingCentral by 4.2% during the first quarter. Sovereign Financial Group Inc. now owns 10,170 shares of the software maker's stock worth $378,000 after purchasing an additional 409 shares in the last quarter. Finally, Meeder Asset Management Inc. raised its holdings in 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 purchasing an additional 410 shares in the last quarter. Institutional investors and hedge funds own 98.61% of the company's stock.

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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