RingCentral (NYSE:RNG) Sets New 12-Month High - Here's Why

Key Points

• RingCentral shares hit a new 52-week high, trading as high as $42.43 and last at $42.71 (volume ~123,833), roughly a 3.9% gain on the session.
• While several firms lifted targets (Notably Needham to $55), the consensus remains a Hold with an average price target of $35.63, which is well below the current share price.
• The company slightly beat quarterly estimates (EPS $1.18 vs. $1.14; revenue $644.0M) and set FY2026 guidance of 4.760–4.970 EPS, yet it trades at a high PE (~87x) with thin net margins and recent insider selling.

RingCentral, Inc. (NYSE:RNG - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $42.43 and last traded at $42.7070, with a volume of 123833 shares traded. The stock had previously closed at $40.21.

Wall Street Analysts Forecast Growth

RNG has been the topic of several recent research reports. Morgan Stanley boosted their price objective on shares of RingCentral from $30.00 to $33.00 and gave the stock an "equal weight" rating in a research report on Friday, February 20th. Needham & Company LLC boosted their price objective on shares of RingCentral from $36.00 to $55.00 and gave the stock a "buy" rating in a research report on Friday, March 13th. Mizuho boosted their price objective on shares of RingCentral from $27.00 to $32.00 and gave the stock a "neutral" rating in a research report on Friday, February 20th. Piper Sandler boosted their price objective on shares of RingCentral from $28.00 to $37.00 and gave the stock a "neutral" rating in a research report on Monday, February 23rd. Finally, Weiss Ratings raised RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, March 2nd. Four investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, RingCentral currently has a consensus rating of "Hold" and an average price target of $35.63.

RingCentral Trading Up 3.9%

The business has a 50 day moving average of $36.38 and a 200-day moving average of $31.03. The stock has a market cap of $3.62 billion, a PE ratio of 87.25, a price-to-earnings-growth ratio of 1.57 and a beta of 1.14.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The software maker reported $1.18 earnings per share (EPS) for the quarter, topping 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 company had revenue of $644.03 million for the quarter, compared to analysts' expectations of $643.52 million. During the same period last year, the company earned $0.98 EPS. The firm's revenue for the quarter 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. On average, equities research analysts anticipate that RingCentral, Inc. will post 2.64 EPS for the current fiscal year.

RingCentral Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 9th were paid a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, March 9th. RingCentral's dividend payout ratio (DPR) is currently 62.50%.

Insider Activity

In other RingCentral news, COO Kira Makagon sold 22,196 shares of the stock in a transaction on Friday, February 27th. The stock was sold at an average price of $35.15, for a total transaction of $780,189.40. Following the transaction, the chief operating officer owned 339,545 shares of the company's stock, valued at $11,935,006.75. This represents a 6.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CAO Tarun Arora sold 8,840 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $40.69, for a total value of $359,699.60. Following the transaction, the chief accounting officer directly owned 75,492 shares in the company, valued at approximately $3,071,769.48. This represents a 10.48% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 253,031 shares of company stock valued at $9,035,345 over the last quarter. 7.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Aaron Wealth Advisors LLC raised its position in shares of RingCentral by 111.4% in the 1st quarter. Aaron Wealth Advisors LLC now owns 17,991 shares of the software maker's stock worth $669,000 after buying an additional 9,481 shares during the period. Louisiana State Employees Retirement System purchased a new position in shares of RingCentral in the 1st quarter worth $1,250,000. Ritholtz Wealth Management purchased a new position in shares of RingCentral in the 1st quarter worth $613,000. OP Asset Management Ltd purchased a new position in shares of RingCentral in the 1st quarter worth $6,892,000. Finally, Sovereign Financial Group Inc. raised its position in shares of RingCentral by 4.2% in the 1st quarter. Sovereign Financial Group Inc. now owns 10,170 shares of the software maker's stock worth $378,000 after buying an additional 409 shares during the period. 98.61% of the stock is currently owned by hedge funds and other institutional investors.

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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