RingCentral, Inc. (NYSE:RNG) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts maintain a cautious outlook: Twelve brokerages give RingCentral an average “Hold” rating, with nine holds and three buys. The average 12-month price target is $44.40.
• RingCentral’s latest quarterly results beat expectations, with EPS of $1.22 versus a $1.16 consensus estimate and revenue of $657.01 million, up 5.9% year over year.
• The company increased its quarterly dividend to $0.125 per share, equivalent to $0.50 annually and a 0.9% yield. Insiders have sold 38,628 shares worth approximately $1.66 million over the past three months.

Shares of RingCentral, Inc. (NYSE:RNG - Get Free Report) have been given an average recommendation of "Hold" by the twelve brokerages that are currently covering the stock, MarketBeat.com reports. Nine investment analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 1 year price target among brokers that have covered the stock in the last year is $44.40.

Several analysts have issued reports on the stock. Mizuho upped their price target on shares of RingCentral from $38.00 to $40.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Robert W. Baird set a $45.00 price objective on shares of RingCentral in a research note on Friday, May 8th. Piper Sandler lifted their price objective on RingCentral from $40.00 to $43.00 and gave the stock a "neutral" rating in a research report on Friday, July 24th. Wells Fargo & Company upped their target price on RingCentral from $32.00 to $43.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $40.00 target price on shares of RingCentral in a report on Saturday, May 9th.

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 stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $42.54, for a total transaction of $722,669.52. Following the sale, the chief operating officer owned 212,724 shares of the company's stock, valued at $9,049,278.96. This trade represents a 7.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert I. Theis sold 2,530 shares of RingCentral stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $40.28, for a total value of $101,908.40. Following the sale, the director owned 30,834 shares of the company's stock, valued at approximately $1,241,993.52. This represents a 7.58% 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. Over the last three months, insiders sold 38,628 shares of company stock valued at $1,656,201. Insiders own 7.30% of the company's stock.

Institutional Investors Weigh In On RingCentral

Several hedge funds have recently modified their holdings of RNG. Empowered Funds LLC raised its position in shares of RingCentral by 9.0% in the first quarter. Empowered Funds LLC now owns 11,417 shares of the software maker's stock valued at $283,000 after buying an additional 940 shares during the last quarter. Woodline Partners LP boosted its position in RingCentral by 14.8% during the first quarter. Woodline Partners LP now owns 159,474 shares of the software maker's stock worth $3,949,000 after acquiring an additional 20,518 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in RingCentral by 2.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 261,190 shares of the software maker's stock worth $6,467,000 after acquiring an additional 5,398 shares during the period. Creative Planning purchased a new stake in RingCentral in the 2nd quarter worth approximately $274,000. Finally, Invesco Ltd. raised its holdings in RingCentral by 10.8% in the 2nd quarter. Invesco Ltd. now owns 137,935 shares of the software maker's stock valued at $3,910,000 after acquiring an additional 13,446 shares during the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

RingCentral Stock Up 1.0%

NYSE:RNG opened at $57.50 on Thursday. The company has a market capitalization of $4.82 billion, a PE ratio of 46.00, a price-to-earnings-growth ratio of 1.61 and a beta of 1.14. RingCentral has a 52-week low of $23.59 and a 52-week high of $58.98. The stock has a fifty day simple moving average of $41.24 and a 200-day simple moving average of $37.42.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, topping the consensus estimate of $1.16 by $0.06. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. The business had revenue of $657.01 million for the quarter, compared to analyst estimates of $650.53 million. During the same period in the previous year, the firm earned $1.06 EPS. The business'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, equities analysts anticipate that RingCentral will post 2.88 earnings per share for the current year.

RingCentral Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.9%. This is a positive change from RingCentral's previous quarterly dividend of $0.07. The ex-dividend date of this dividend is Thursday, August 6th. RingCentral's payout ratio is presently 24.00%.

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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