RingCentral (NYSE:RNG) Hits New 52-Week High - Still a Buy?

Key Points

• RingCentral shares reached a new 52-week high of $64.95, trading about 2.7% higher, despite analysts’ average “Hold” rating and consensus price target of $44.40.
• The company exceeded quarterly expectations, reporting $1.22 in EPS versus $1.16 expected and revenue of $657.01 million, up 5.9% year over year.
• RingCentral raised its quarterly dividend to $0.125 per share, or $0.50 annually, representing a 0.8% yield; institutional investors own 98.61% of the stock, while insiders have sold shares in recent months.

RingCentral, Inc. (NYSE:RNG - Get Free Report) shares hit a new 52-week high during trading on Monday . The stock traded as high as $64.95 and last traded at $64.4840, with a volume of 592230 shares traded. The stock had previously closed at $63.01.

Wall Street Analyst Weigh In

A number of research firms have issued reports on RNG. Wells Fargo & Company upped 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. Rosenblatt Securities reissued a "buy" rating and set a $50.00 price objective on shares of RingCentral in a research report on Friday, July 24th. Morgan Stanley increased their target price on RingCentral from $33.00 to $40.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of RingCentral in a research report on Friday, July 17th. Finally, Jefferies Financial Group reissued a "hold" rating and issued a $40.00 price objective on shares of RingCentral in a research report on Saturday, May 9th. Three investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $44.40.

RingCentral Stock Up 2.7%

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

The firm has a market capitalization of $5.40 billion, a price-to-earnings ratio of 51.74, a P/E/G ratio of 1.09 and a beta of 1.10. The business has a 50-day moving average of $43.52 and a two-hundred day moving average of $38.95.

RingCentral (NYSE:RNG - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, beating the consensus estimate of $1.16 by $0.06. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The firm had revenue of $657.01 million during the quarter, compared to analysts' expectations of $650.53 million. During the same quarter in the prior year, the firm posted $1.06 EPS. The company's revenue for the quarter was up 5.9% on a year-over-year basis. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. Equities analysts predict that RingCentral, Inc. will post 2.88 EPS for the current fiscal year.

RingCentral Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be given a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 0.8%. This is an increase from RingCentral's previous quarterly dividend of $0.07. The ex-dividend date of this dividend is Thursday, August 6th. RingCentral's dividend payout ratio (DPR) is 40.00%.

Insider Activity

In other RingCentral news, CAO Tarun Arora sold 3,615 shares of the business's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $43.00, for a total value of $155,445.00. Following the sale, the chief accounting officer owned 68,100 shares of the company's stock, valued at $2,928,300. The trade was a 5.04% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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, Director Amy Guggenheim Shenkan sold 1,265 shares of the firm's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $40.59, for a total transaction of $51,346.35. Following the transaction, the director directly owned 29,372 shares of the company's stock, valued at $1,192,209.48. The trade was a 4.13% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 38,628 shares of company stock valued at $1,656,201. 7.30% of the stock is owned by insiders.

Institutional Investors Weigh In On RingCentral

Institutional investors have recently added to or reduced their stakes in the stock. LSV Asset Management lifted its position in shares of RingCentral by 142.4% during the 4th quarter. LSV Asset Management now owns 2,871,700 shares of the software maker's stock worth $82,935,000 after buying an additional 1,686,900 shares during the period. AQR Capital Management LLC raised its stake in RingCentral by 35.4% during the fourth quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker's stock worth $57,874,000 after acquiring an additional 523,966 shares in the last quarter. Quantinno Capital Management LP lifted its holdings in shares of RingCentral by 150.4% during the first quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker's stock valued at $73,524,000 after acquiring an additional 1,187,437 shares during the period. Alyeska Investment Group L.P. bought a new position in shares of RingCentral during the third quarter valued at $53,365,000. Finally, Marshall Wace LLP boosted its stake in shares of RingCentral by 4.4% in the 3rd quarter. Marshall Wace LLP now owns 1,794,978 shares of the software maker's stock valued at $50,870,000 after purchasing an additional 75,709 shares in the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

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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