RingCentral, Inc. (NYSE:RNG) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analyst sentiment is neutral: Eight of 11 analysts rate RingCentral “Hold” and three rate it “Buy,” with an average 12-month price target of $44.40.
• RingCentral exceeded quarterly expectations, reporting $1.22 in adjusted EPS versus the $1.16 consensus and $657.01 million in revenue, up 5.9% year over year. The company also increased its quarterly dividend to $0.125 per share.
• Institutional ownership remains high at 98.61%, while insiders sold 34,052 shares worth approximately $1.5 million over the last quarter, including transactions made under pre-arranged Rule 10b5-1 plans.

RingCentral, Inc. (NYSE:RNG - Get Free Report) has received an average rating of "Hold" from the eleven analysts that are covering the stock, Marketbeat.com reports. Eight research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $44.40.

A number of brokerages recently issued reports on RNG. Piper Sandler upped their price objective on shares of RingCentral from $40.00 to $43.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Jefferies Financial Group reissued a "hold" rating and issued a $40.00 price target on shares of RingCentral in a research note on Saturday, May 9th. Morgan Stanley raised their price target on shares of RingCentral from $33.00 to $40.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Oppenheimer reaffirmed an "outperform" rating and set a $50.00 price target on shares of RingCentral in a research report on Friday, May 8th. Finally, Mizuho upped their price objective on RingCentral from $38.00 to $40.00 and gave the company a "neutral" rating in a report on Friday, July 24th.

Insiders Place Their Bets

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

In related news, COO Kira Makagon sold 16,988 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $42.54, for a total value of $722,669.52. Following the sale, the chief operating officer directly owned 212,724 shares in the company, valued at approximately $9,049,278.96. The trade was a 7.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 business's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $40.28, for a total transaction of $101,908.40. Following the completion of the sale, the director owned 30,834 shares in the company, valued at approximately $1,241,993.52. This trade represents a 7.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 34,052 shares of company stock worth $1,506,498. Corporate insiders own 7.30% of the company's stock.

Institutional Investors Weigh In On RingCentral

A number of institutional investors have recently made changes to their positions in the stock. Empowered Funds LLC boosted its position in shares of RingCentral by 9.0% during the 1st quarter. Empowered Funds LLC now owns 11,417 shares of the software maker's stock worth $283,000 after purchasing an additional 940 shares during the period. Woodline Partners LP raised its position in RingCentral by 14.8% in the first quarter. Woodline Partners LP now owns 159,474 shares of the software maker's stock valued at $3,949,000 after purchasing an additional 20,518 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in RingCentral by 2.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 261,190 shares of the software maker's stock valued at $6,467,000 after purchasing an additional 5,398 shares during the period. Creative Planning acquired a new position in RingCentral during the second quarter worth $274,000. Finally, Invesco Ltd. lifted its stake in RingCentral by 10.8% during the second quarter. Invesco Ltd. now owns 137,935 shares of the software maker's stock worth $3,910,000 after purchasing an additional 13,446 shares in the last quarter. 98.61% of the stock is currently owned by institutional investors and hedge funds.

RingCentral Stock Performance

NYSE:RNG opened at $66.92 on Monday. RingCentral has a one year low of $24.14 and a one year high of $68.45. The stock has a market cap of $5.59 billion, a PE ratio of 53.54, a P/E/G ratio of 1.16 and a beta of 1.10. The stock has a 50 day moving average price of $48.11 and a 200 day moving average price of $41.66.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings data 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. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The company had revenue of $657.01 million for the quarter, compared to analyst estimates of $650.53 million. During the same quarter in the previous year, the company posted $1.06 earnings per share. The firm's revenue for the quarter was up 5.9% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. As a group, analysts predict that RingCentral will post 2.88 earnings per share for the current fiscal year.

RingCentral Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were given a $0.125 dividend. This is an increase from RingCentral's previous quarterly dividend of $0.07. This represents a $0.50 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Thursday, August 6th. RingCentral's dividend payout ratio (DPR) is presently 40.00%.

RingCentral Company Profile

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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