RingCentral (NYSE:RNG) Trading Up 10.5% - Time to Buy?

Key Points

• RingCentral shares jumped 10.5% in Monday trading, briefly reaching $47.49 before settling near $47.87. Volume was well below average, with about 536,000 shares traded versus a 2.2 million-session average.
• The company’s latest earnings beat expectations, with Q1 EPS of $1.20 topping estimates and revenue of $644.2 million also slightly ahead of forecasts. RingCentral also reaffirmed its outlook, guiding FY 2026 EPS to 4.85-5.01 and Q2 2026 EPS to 1.15-1.17.
• Analyst sentiment remains cautious overall despite some upward moves in targets: RingCentral has a consensus Hold rating and a consensus price target of $43.00. The company also announced a quarterly dividend of $0.075 per share, yielding about 0.6% annually.

RingCentral, Inc. (NYSE:RNG - Get Free Report) shot up 10.5% during mid-day trading on Monday . The company traded as high as $47.49 and last traded at $47.8680. 536,222 shares were traded during trading, a decline of 76% from the average session volume of 2,203,177 shares. The stock had previously closed at $43.31.

Analyst Ratings Changes

Several brokerages recently issued reports on RNG. Oppenheimer restated an "outperform" rating and set a $50.00 price objective on shares of RingCentral in a research report on Friday, May 8th. Zacks Research upgraded RingCentral from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 4th. Weiss Ratings upgraded RingCentral from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 2nd. Needham & Company LLC boosted their price target on RingCentral from $36.00 to $55.00 and gave the company a "buy" rating in a report on Friday, March 13th. Finally, Jefferies Financial Group reiterated a "hold" rating and issued a $40.00 price target on shares of RingCentral in a report on Saturday, May 9th. Three analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, RingCentral currently has a consensus rating of "Hold" and a consensus price target of $43.00.

RingCentral Stock Performance

The firm has a market cap of $4.13 billion, a price-to-earnings ratio of 52.41, a price-to-earnings-growth ratio of 1.27 and a beta of 1.14. The business's 50 day moving average price is $40.06 and its 200-day moving average price is $33.70.

RingCentral (NYSE:RNG - Get Free Report) last issued its earnings results on Thursday, May 7th. The software maker reported $1.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.03. The business had revenue of $644.20 million for the quarter, compared to analyst estimates of $642.73 million. RingCentral had a net margin of 3.31% and a negative return on equity of 33.75%. The company's revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.00 EPS. 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 2.79 earnings per share for the current fiscal year.

RingCentral Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Tuesday, June 2nd will be issued a $0.075 dividend. The ex-dividend date is Tuesday, June 2nd. This represents a $0.30 annualized dividend and a dividend yield of 0.6%. RingCentral's dividend payout ratio (DPR) is 31.91%.

Insider Activity

In other RingCentral news, CFO Vaibhav Agarwal sold 4,044 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $42.06, for a total value of $170,090.64. Following the completion of the sale, the chief financial officer owned 132,181 shares in the company, valued at $5,559,532.86. This represents a 2.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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, 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 transaction of $359,699.60. Following the completion of the transaction, the chief accounting officer owned 75,492 shares in the company, valued at $3,071,769.48. The trade was a 10.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 43,557 shares of company stock worth $1,793,754 over the last three months. Corporate insiders own 7.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. WealthCollab LLC raised its stake 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 during the last quarter. Meeder Asset Management Inc. boosted its holdings in shares of RingCentral by 127.3% in the first quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker's stock valued at $27,000 after buying an additional 410 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of RingCentral by 269.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker's stock valued at $29,000 after buying an additional 738 shares during the period. Rockefeller Capital Management L.P. boosted its holdings in shares of RingCentral by 70.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock valued at $30,000 after buying an additional 424 shares during the period. Finally, Harvest Fund Management Co. Ltd acquired a new position in shares of RingCentral in the third quarter valued at approximately $30,000. 98.61% of the stock is currently owned by institutional investors and hedge funds.

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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