RingCentral (NYSE:RNG) Sets New 1-Year High on Analyst Upgrade

Key Points

• RingCentral shares hit a new 52-week high after Mizuho raised its price target from $38 to $40, though the brokerage kept a neutral rating. The stock traded as high as $50.14 on heavy volume.
• Second-quarter results beat expectations, with EPS of $1.22 versus $1.16 expected and revenue of $657.0 million versus $650.5 million expected. Management also lifted full-year and Q3 guidance above consensus.
• The company increased its quarterly dividend by 66.7% to $0.125 per share, signaling confidence in cash generation and shareholder returns. Insider selling was also noted, including recent Rule 10b5-1 transactions by a director and the CAO.

RingCentral, Inc. (NYSE:RNG - Get Free Report) shares hit a new 52-week high during mid-day trading on Saturday after Mizuho raised their price target on the stock from $38.00 to $40.00. Mizuho currently has a neutral rating on the stock. RingCentral traded as high as $50.14 and last traded at $48.3270, with a volume of 8917197 shares trading hands. The stock had previously closed at $38.62.

A number of other brokerages have also commented on RNG. Weiss Ratings restated a "hold (c)" rating on shares of RingCentral in a report on Friday, July 17th. Oppenheimer reaffirmed an "outperform" rating and issued a $50.00 target price on shares of RingCentral in a research note on Friday, May 8th. Needham & Company LLC reiterated a "buy" rating on shares of RingCentral in a report on Monday. Wells Fargo & Company lifted their price target 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, Piper Sandler upped their price objective on RingCentral from $40.00 to $43.00 and gave the stock a "neutral" rating in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, RingCentral has a consensus rating of "Hold" and an average target price of $44.40.

Insider Buying and Selling

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

In other RingCentral news, Director Robert I. Theis sold 2,530 shares of RingCentral stock in a transaction on Thursday, July 2nd. The shares were 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 of the company's stock, valued at $1,241,993.52. The trade was a 7.58% decrease in their ownership of the stock. 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. Also, CAO Tarun Arora sold 3,615 shares of the company's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $43.00, for a total transaction of $155,445.00. Following the completion of the transaction, the chief accounting officer owned 68,100 shares in the company, valued at approximately $2,928,300. This trade represents a 5.04% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last quarter, insiders have sold 44,498 shares of company stock worth $1,892,586. Corporate insiders own 7.30% of the company's stock.

More RingCentral News

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported Q2 EPS of $1.22 versus $1.16 expected and revenue of $657.0 million versus $650.5 million expected, showing a solid beat on both the top and bottom lines. RingCentral Q2 Earnings Report
• Positive Sentiment: The company raised Q3 2026 guidance to EPS of $1.25-$1.30 and revenue of $664 million-$670 million, both above consensus, and lifted FY 2026 EPS guidance to $4.96-$5.10. RingCentral Financial Results
• Positive Sentiment: Management and recent commentary point to stronger subscription growth, higher margins, and expanding AI adoption, which are supporting the improved growth outlook. Zacks Q2 Earnings Article
• Positive Sentiment: RingCentral also announced a 66.7% increase in its quarterly dividend to $0.125 per share, signaling confidence in cash generation and capital returns. Insider Monkey Article
• Neutral Sentiment: Mizuho raised its price target to $40 but kept a neutral rating, which is below the current trading level and suggests some caution on valuation. Mizuho Price Target Update
• Neutral Sentiment: Rosenblatt reaffirmed a buy rating with a $50 target, broadly reinforcing the positive post-earnings sentiment. Rosenblatt Rating Update

Institutional Investors Weigh In On RingCentral

Hedge funds and other institutional investors have recently modified their holdings of the company. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new position in RingCentral during the first quarter worth about $697,000. Robertson Stephens Wealth Management LLC increased its position in RingCentral by 124.7% during the 4th quarter. Robertson Stephens Wealth Management LLC now owns 90,311 shares of the software maker's stock worth $2,608,000 after purchasing an additional 50,122 shares in the last quarter. LSV Asset Management lifted its stake in RingCentral by 142.4% in the 4th quarter. LSV Asset Management now owns 2,871,700 shares of the software maker's stock valued at $82,935,000 after purchasing an additional 1,686,900 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. lifted its stake in RingCentral by 60.0% in the 4th quarter. Harel Insurance Investments & Financial Services Ltd. now owns 280,323 shares of the software maker's stock valued at $8,096,000 after purchasing an additional 105,145 shares during the last quarter. Finally, Fort Washington Investment Advisors Inc. OH boosted its position in RingCentral by 7.6% in the fourth quarter. Fort Washington Investment Advisors Inc. OH now owns 1,316,598 shares of the software maker's stock valued at $38,023,000 after buying an additional 92,508 shares in the last quarter. Institutional investors and hedge funds own 98.61% of the company's stock.

RingCentral Price Performance

The business's 50-day simple moving average is $40.41 and its two-hundred day simple moving average is $36.78. The stock has a market cap of $4.05 billion, a price-to-earnings ratio of 38.66, a price-to-earnings-growth ratio of 1.14 and a beta of 1.14.

RingCentral (NYSE:RNG - Get Free Report) last issued its earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.16 by $0.06. RingCentral had a negative return on equity of 34.98% and a net margin of 4.27%.The business 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 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. Equities research analysts forecast that RingCentral, Inc. will post 2.78 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. Shareholders of record on Thursday, August 6th will be given a $0.125 dividend. This is a boost from RingCentral's previous quarterly dividend of $0.07. The ex-dividend date is Thursday, August 6th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.0%. RingCentral's dividend payout ratio is presently 31.91%.

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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