RingCentral, Inc. (NYSE:RNG) Sees Significant Decline in Short Interest

Key Points

• Short interest fell 24.4% in February to 8,318,001 shares (now 10.4% of shares sold short) with a short-interest ratio of 1.7 days, signaling a meaningful reduction in bearish positioning.
• RingCentral beat Q4 estimates with $1.18 EPS vs. $1.14 expected and revenue of $644.03M, and issued FY2026 guidance of $4.760–$4.970 EPS (Q1 guidance 1.160–1.190 EPS).
• Insiders have been selling: the CEO sold 95,831 shares (~$3.41M) and insiders have offloaded 259,526 shares (~$9.23M) in the last 90 days; the company also declared a quarterly dividend of $0.075 (annualized $0.30, ~0.8% yield).

RingCentral, Inc. (NYSE:RNG - Get Free Report) was the target of a significant decrease in short interest in the month of February. As of February 27th, there was short interest totaling 8,318,001 shares, a decrease of 24.4% from the February 12th total of 10,998,242 shares. Currently, 10.4% of the shares of the company are sold short. Based on an average daily volume of 4,775,693 shares, the short-interest ratio is currently 1.7 days. Based on an average daily volume of 4,775,693 shares, the short-interest ratio is currently 1.7 days. Currently, 10.4% of the shares of the company are sold short.

RingCentral Stock Down 0.8%

Shares of NYSE RNG traded down $0.30 during midday trading on Friday, reaching $37.76. 2,010,219 shares of the stock were exchanged, compared to its average volume of 3,449,243. The firm has a market cap of $3.27 billion, a price-to-earnings ratio of 78.66, a PEG ratio of 1.50 and a beta of 1.14. The firm has a 50-day simple moving average of $30.99 and a two-hundred day simple moving average of $29.77. RingCentral has a twelve month low of $20.58 and a twelve month high of $42.42.

RingCentral (NYSE:RNG - Get Free Report) last posted its earnings results on Thursday, February 19th. The software maker reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.04. RingCentral had a net margin of 1.73% and a negative return on equity of 28.14%. The firm had revenue of $644.03 million during the quarter, compared to analysts' expectations of $643.52 million. During the same period in the previous year, the business posted $0.98 EPS. The business's revenue was up 4.8% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.760-4.970 EPS and its Q1 2026 guidance at 1.160-1.190 EPS. Research analysts expect that RingCentral will post 1.29 EPS for the current fiscal year.

RingCentral Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 9th will be given a $0.075 dividend. The ex-dividend date is Monday, March 9th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.8%. RingCentral's dividend payout ratio is 62.50%.

Insider Transactions at RingCentral

In related news, CEO Vladimir Shmunis sold 95,831 shares of RingCentral stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $35.59, for a total transaction of $3,410,625.29. Following the completion of the sale, the chief executive officer owned 126,685 shares of the company's stock, valued at $4,508,719.15. The trade was a 43.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Kira Makagon sold 46,960 shares of the company's stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $35.49, for a total value of $1,666,610.40. Following the completion of the sale, the chief operating officer owned 369,524 shares in the company, valued at approximately $13,114,406.76. This represents a 11.28% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 259,526 shares of company stock valued at $9,225,128. 7.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On RingCentral

Institutional investors have recently modified their holdings of the business. Global Retirement Partners LLC raised its holdings in RingCentral by 98.5% in the 3rd quarter. Global Retirement Partners LLC now owns 901 shares of the software maker's stock worth $26,000 after purchasing an additional 447 shares during the period. EverSource Wealth Advisors LLC grew its holdings in RingCentral by 269.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker's stock valued at $29,000 after purchasing an additional 738 shares during the period. Harvest Fund Management Co. Ltd purchased a new stake in shares of RingCentral in the third quarter valued at approximately $30,000. Jones Financial Companies Lllp increased its position in shares of RingCentral by 61.6% in the third quarter. Jones Financial Companies Lllp now owns 1,217 shares of the software maker's stock valued at $37,000 after buying an additional 464 shares in the last quarter. Finally, Covestor Ltd raised its stake in shares of RingCentral by 198.5% during the 4th quarter. Covestor Ltd now owns 1,594 shares of the software maker's stock worth $46,000 after buying an additional 1,060 shares during the period. 98.61% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

RNG has been the topic of several recent research reports. Zacks Research raised shares of RingCentral from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 4th. Oppenheimer reissued an "outperform" rating on shares of RingCentral in a report on Friday, February 20th. UBS Group set a $38.00 target price on shares of RingCentral in a research report on Friday, February 20th. Piper Sandler upped their price target on shares of RingCentral from $28.00 to $37.00 and gave the company a "neutral" rating in a report on Monday, February 23rd. Finally, Robert W. Baird increased their price target on RingCentral from $30.00 to $34.00 and gave the stock a "neutral" rating in a research report on Monday, February 23rd. Four research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $35.63.

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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