RingCentral, Inc. (NYSE:RNG) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• RingCentral has a consensus analyst rating of “Hold” from 12 research firms, with nine hold ratings and three buy ratings. The average 12-month price target is $43.00.
• The company recently reported quarterly earnings of $1.20 per share, topping estimates, while revenue of $644.2 million also came in slightly ahead of expectations and rose 5.3% year over year.
• RingCentral’s stock opened at $40.07 and has traded between $23.59 and $49.85 over the past year. The company also paid a quarterly dividend of $0.075 per share, equal to a 0.7% annual yield.

Shares of RingCentral, Inc. (NYSE:RNG - Get Free Report) have been assigned a consensus recommendation of "Hold" from the twelve research firms that are presently covering the firm, Marketbeat Ratings reports. Nine research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $43.00.

RNG has been the topic of a number of recent analyst reports. Wells Fargo & Company raised their price target 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. Oppenheimer reissued an "outperform" rating and set a $50.00 price objective on shares of RingCentral in a report on Friday, May 8th. Jefferies Financial Group restated a "hold" rating and set a $40.00 price objective on shares of RingCentral in a research report on Saturday, May 9th. Robert W. Baird set a $45.00 target price on shares of RingCentral in a report on Friday, May 8th. Finally, Morgan Stanley boosted their target price on shares of RingCentral from $33.00 to $40.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th.

RingCentral Price Performance

RNG stock opened at $40.07 on Friday. RingCentral has a 1-year low of $23.59 and a 1-year high of $49.85. The business has a fifty day moving average price of $40.72 and a 200-day moving average price of $35.55. The stock has a market capitalization of $3.36 billion, a P/E ratio of 42.63, a P/E/G ratio of 1.18 and a beta of 1.14.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The software maker reported $1.20 EPS for the quarter, beating the consensus estimate of $1.17 by $0.03. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The company had revenue of $644.20 million for the quarter, compared to analysts' expectations of $642.73 million. During the same period last year, the firm posted $1.00 earnings per share. RingCentral's revenue was up 5.3% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.850-5.010 EPS and its Q2 2026 guidance at 1.150-1.170 EPS. As a group, analysts anticipate that RingCentral will post 2.78 earnings per share for the current year.

RingCentral Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Tuesday, June 2nd were issued a $0.075 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $0.30 annualized dividend and a dividend yield of 0.7%. RingCentral's payout ratio is presently 31.91%.

Insider Activity at RingCentral

In other RingCentral news, CAO Tarun Arora sold 3,615 shares of the business's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $43.00, for a total transaction of $155,445.00. Following the completion of the sale, the chief accounting officer directly owned 68,100 shares in the company, valued at $2,928,300. The trade was a 5.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available 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 16,988 shares of the company's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $42.54, for a total transaction of $722,669.52. Following the sale, the chief operating officer directly owned 212,724 shares of the company's stock, valued at $9,049,278.96. The trade was a 7.40% decrease in their position. 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 have sold 45,451 shares of company stock valued at $1,933,565 in the last 90 days. 7.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On RingCentral

Institutional investors and hedge funds have recently made changes to their positions in the business. WealthCollab LLC grew its position in RingCentral by 59.7% during the first quarter. WealthCollab LLC now owns 693 shares of the software maker's stock valued at $26,000 after buying an additional 259 shares during the period. Meeder Asset Management Inc. raised its position in RingCentral by 127.3% in 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 during the period. EverSource Wealth Advisors LLC raised its position in RingCentral by 269.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker's stock worth $29,000 after acquiring an additional 738 shares during the period. Rockefeller Capital Management L.P. boosted its stake in shares of 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 last quarter. Finally, Harvest Fund Management Co. Ltd purchased a new position in shares of RingCentral during the 3rd quarter worth $30,000. Hedge funds and other institutional investors 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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