RingCentral (NYSE:RNG) Hits New 52-Week High - Here's Why

Key Points

• RingCentral shares reached a new 52-week high of $60.25, significantly above the previous close of $57.30, despite analysts’ consensus “Hold” rating and average price target of $44.40.
• The company beat quarterly expectations, reporting adjusted EPS of $1.22 versus $1.16 expected and revenue of $657.01 million versus $650.53 million; revenue increased 5.9% year over year.
• RingCentral raised its quarterly dividend to $0.125 from $0.07, implying an annualized payout of $0.50 and a yield of about 0.8%, while insiders sold shares worth roughly $1.66 million over the past quarter.

RingCentral, Inc. (NYSE:RNG - Get Free Report) reached a new 52-week high during trading on Tuesday . The stock traded as high as $60.25 and last traded at $59.6870, with a volume of 289480 shares. The stock had previously closed at $57.30.

Analysts Set New Price Targets

Several analysts have recently commented on RNG shares. Rosenblatt Securities reaffirmed a "buy" rating and set a $50.00 price objective on shares of RingCentral in a research report on Friday, July 24th. Wells Fargo & Company boosted their target price on shares of RingCentral from $32.00 to $43.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Weiss Ratings reissued a "hold (c)" rating on shares of RingCentral in a research note on Friday, July 17th. Mizuho raised their price target on shares of RingCentral from $38.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, July 24th. Finally, Robert W. Baird set a $45.00 price target on shares of RingCentral in a research note on Friday, May 8th. Three research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $44.40.

RingCentral Price Performance

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

The firm has a market capitalization of $5.01 billion, a PE ratio of 47.96, a PEG ratio of 0.97 and a beta of 1.14. The firm's fifty day moving average is $41.99 and its two-hundred day moving average is $37.97.

RingCentral (NYSE:RNG - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, beating analysts' consensus estimates of $1.16 by $0.06. The company had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.RingCentral's revenue was up 5.9% on a year-over-year basis. During the same period last year, the business posted $1.06 earnings per share. 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 research analysts predict that RingCentral, Inc. will post 2.88 EPS for the current fiscal 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. The ex-dividend date of this dividend is Thursday, August 6th. 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 dividend yield of 0.8%. RingCentral's dividend payout ratio is 40.00%.

Insiders Place Their Bets

In other news, COO Kira Makagon sold 16,988 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $42.54, for a total transaction of $722,669.52. Following the completion of the transaction, the chief operating officer directly owned 212,724 shares in the company, valued at $9,049,278.96. The trade was a 7.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 company's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $40.28, for a total transaction of $101,908.40. Following the completion of the transaction, the director directly owned 30,834 shares in the company, valued at approximately $1,241,993.52. The trade was 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. Insiders have sold 38,628 shares of company stock worth $1,656,201 over the last quarter. Insiders own 7.30% of the company's stock.

Hedge Funds Weigh In On RingCentral

A number of institutional investors have recently added to or reduced their stakes in RNG. WealthCollab LLC boosted its position in shares of RingCentral by 59.7% during the 1st quarter. WealthCollab LLC now owns 693 shares of the software maker's stock valued at $26,000 after acquiring an additional 259 shares during the last quarter. Meeder Asset Management Inc. increased its position in shares of 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 purchasing an additional 410 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake 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 in the last quarter. Rockefeller Capital Management L.P. raised its stake in RingCentral by 70.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock valued at $30,000 after purchasing an additional 424 shares in the last quarter. Finally, Harvest Fund Management Co. Ltd bought a new stake in RingCentral during the third quarter valued at approximately $30,000. 98.61% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.