RingCentral (NYSE:RNG) Trading 4.9% Higher - Should You Buy?

Key Points

• RingCentral shares rose 4.9% on Tuesday, closing near $42.69 after trading as high as $42.86, though volume was well below average.
• Recent earnings topped expectations: the company reported $1.20 EPS versus $1.17 expected and revenue of $644.2 million, up 5.3% year over year.
• Analyst sentiment remains cautious but improving, with a consensus rating of “Hold” and an average price target of $43.00 after several firms raised their targets.

RingCentral, Inc. (NYSE:RNG - Get Free Report) traded up 4.9% during trading on Tuesday . The company traded as high as $42.86 and last traded at $42.6920. 323,581 shares were traded during trading, a decline of 86% from the average session volume of 2,263,052 shares. The stock had previously closed at $40.68.

Analysts Set New Price Targets

A number of equities analysts have commented on RNG shares. Weiss Ratings raised RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, March 2nd. Robert W. Baird set a $45.00 price target on RingCentral in a report on Friday, May 8th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $40.00 price target on shares of RingCentral in a report on Saturday, May 9th. Morgan Stanley increased their price objective on shares of RingCentral from $33.00 to $40.00 and gave the stock an "equal weight" rating in a report on Monday, May 11th. Finally, Wells Fargo & Company raised their price objective 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. Three equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat, RingCentral currently has an average rating of "Hold" and a consensus target price of $43.00.

RingCentral Stock Performance

The company has a market capitalization of $3.59 billion, a price-to-earnings ratio of 45.41, a P/E/G ratio of 1.25 and a beta of 1.13. The business's 50-day simple moving average is $39.40 and its 200-day simple moving average is $32.78.

RingCentral (NYSE:RNG - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. RingCentral had a net margin of 3.31% and a negative return on equity of 33.75%. The business had revenue of $644.20 million during the quarter, compared to the consensus estimate of $642.73 million. During the same period in the previous year, the firm posted $1.00 earnings per share. RingCentral's revenue for the quarter was up 5.3% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.850-5.010 EPS and its Q2 2026 guidance at 1.150-1.170 EPS. On average, analysts forecast that RingCentral, Inc. will post 2.69 earnings per share for the current year.

RingCentral Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Tuesday, June 2nd will be paid a dividend of $0.075 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.7%. RingCentral's payout ratio is 31.91%.

Insider Buying and Selling

In other RingCentral news, CFO Vaibhav Agarwal sold 18,680 shares of the firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $36.33, for a total transaction of $678,644.40. Following the transaction, the chief financial officer owned 139,493 shares in the company, valued at approximately $5,067,780.69. This trade represents a 11.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Tarun Arora sold 953 shares of the business's stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $43.00, for a total value of $40,979.00. Following the transaction, the chief accounting officer owned 74,539 shares of the company's stock, valued at $3,205,177. The trade was a 1.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 259,854 shares of company stock worth $9,312,708. Company insiders own 7.30% of the company's stock.

Institutional Trading of RingCentral

Several hedge funds have recently added to or reduced their stakes in RNG. WealthCollab LLC increased its holdings in shares of RingCentral by 59.7% in the first quarter. WealthCollab LLC now owns 693 shares of the software maker's stock worth $26,000 after acquiring an additional 259 shares in the last quarter. Meeder Asset Management Inc. lifted its holdings in shares of RingCentral by 127.3% during the 1st quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker's stock valued at $27,000 after purchasing an additional 410 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of RingCentral by 269.3% in the 4th 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 during the period. Rockefeller Capital Management L.P. increased its stake in RingCentral by 70.5% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock worth $30,000 after purchasing an additional 424 shares in the last quarter. Finally, Harvest Fund Management Co. Ltd acquired a new stake in RingCentral during the 3rd quarter worth approximately $30,000. Institutional investors and hedge funds 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.

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