RingCentral (NYSE:RNG) Shares Up 8.4% - What's Next?

Key Points

• Shares jumped 8.4% Monday to about $36.30 on mid-day trading, though volume was light (450,017 shares vs. a ~2.39M average).
• Analysts largely rate RingCentral a Hold with a consensus price target of $35.63, while several firms recently raised targets (UBS $38, Morgan Stanley to $33, Robert W. Baird to $34, Mizuho to $32).
• RingCentral beat Q4 estimates with $1.18 EPS (vs. $1.14) and revenue of $644M (+4.8% y/y), and issued FY2026 EPS guidance of 4.76–4.97.

RingCentral, Inc. (NYSE:RNG - Get Free Report)'s share price shot up 8.4% during mid-day trading on Monday . The company traded as high as $36.26 and last traded at $36.2950. 450,017 shares were traded during trading, a decline of 81% from the average session volume of 2,393,126 shares. The stock had previously closed at $33.49.

Wall Street Analysts Forecast Growth

RNG has been the topic of a number of recent research reports. UBS Group set a $38.00 target price on RingCentral in a report on Friday, February 20th. Morgan Stanley increased their target price on RingCentral from $30.00 to $33.00 and gave the stock an "equal weight" rating in a report on Friday, February 20th. Robert W. Baird increased their target price on RingCentral from $30.00 to $34.00 and gave the stock a "neutral" rating in a report on Monday, February 23rd. Mizuho increased their target price on RingCentral from $27.00 to $32.00 and gave the stock a "neutral" rating in a report on Friday, February 20th. Finally, Weiss Ratings upgraded RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 2nd. Four research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, RingCentral presently has an average rating of "Hold" and a consensus price target of $35.63.

RingCentral Price Performance

The company's fifty day moving average price is $34.86 and its 200 day moving average price is $30.62. The company has a market cap of $3.16 billion, a PE ratio of 76.02, a P/E/G ratio of 1.30 and a beta of 1.14.

RingCentral (NYSE:RNG - Get Free Report) last announced its earnings results on Thursday, February 19th. The software maker reported $1.18 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 company had revenue of $644.03 million during the quarter, compared to the consensus estimate of $643.52 million. During the same quarter in the prior year, the company posted $0.98 earnings per share. The firm's revenue for the quarter was up 4.8% on a year-over-year basis. 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, analysts forecast that RingCentral, Inc. will post 1.29 EPS for the current year.

RingCentral Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 9th were given a dividend of $0.075 per share. The ex-dividend date of this dividend was Monday, March 9th. This represents a $0.30 annualized dividend and a dividend yield of 0.8%. RingCentral's dividend payout ratio (DPR) is currently 62.50%.

Insiders Place Their Bets

In other news, CEO Vladimir Shmunis sold 95,831 shares of the firm's stock in a transaction on 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 directly owned 126,685 shares of the company's stock, valued at $4,508,719.15. This trade represents a 43.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Tarun Arora sold 8,840 shares of the firm's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $40.69, for a total value of $359,699.60. Following the sale, the chief accounting officer directly owned 75,492 shares of the company's stock, valued at approximately $3,071,769.48. This represents a 10.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 253,031 shares of company stock valued at $9,035,345. 7.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On RingCentral

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in RingCentral by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 11,823,636 shares of the software maker's stock worth $335,082,000 after acquiring an additional 129,444 shares during the last quarter. Capital World Investors increased its holdings in RingCentral by 20.9% in the 3rd quarter. Capital World Investors now owns 11,735,991 shares of the software maker's stock worth $332,598,000 after acquiring an additional 2,031,861 shares during the last quarter. LSV Asset Management increased its holdings in RingCentral by 142.4% in the 4th quarter. LSV Asset Management now owns 2,871,700 shares of the software maker's stock worth $82,935,000 after acquiring an additional 1,686,900 shares during the last quarter. AQR Capital Management LLC increased its holdings in RingCentral by 35.4% in the 4th 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 during the last quarter. Finally, Alyeska Investment Group L.P. purchased a new stake in RingCentral in the 3rd quarter worth about $53,365,000. Hedge funds and other institutional investors own 98.61% of the company's stock.

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.