RingCentral (NYSE:RNG) Trading Up 7% on Analyst Upgrade

Key Points

• RingCentral shares rose 7% after Mizuho increased its price target from $38 to $40, although it maintained a neutral rating. The broader analyst consensus remains “Hold,” with a $44.40 average target.
• The company reported quarterly EPS of $1.22, beating estimates of $1.16, while revenue reached $657.01 million and increased 5.9% year over year.
• RingCentral raised its quarterly dividend to $0.125 per share from $0.07, implying a $0.50 annualized dividend and roughly a 1% yield; institutional investors own 98.61% of the stock.

RingCentral, Inc. (NYSE:RNG - Get Free Report) shares were up 7% during mid-day trading on Monday 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 $52.88 and last traded at $51.7020. Approximately 755,349 shares were traded during trading, a decline of 64% from the average session volume of 2,107,862 shares. The stock had previously closed at $48.31.

Several other brokerages have also weighed in on RNG. Wells Fargo & Company lifted their price objective on RingCentral from $32.00 to $43.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Morgan Stanley raised their target price on RingCentral from $33.00 to $40.00 and gave the stock an "equal weight" rating in a research report on Monday, May 11th. Weiss Ratings reiterated a "hold (c)" rating on shares of RingCentral in a research note on Friday, July 17th. Rosenblatt Securities reissued a "buy" rating and issued a $50.00 price target on shares of RingCentral in a report on Friday. Finally, Needham & Company LLC restated a "buy" rating on shares of RingCentral in a research note on Monday, July 20th. Three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, RingCentral currently has an average rating of "Hold" and a consensus price target of $44.40.

Insider Buying and Selling at RingCentral

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

In other news, CFO Vaibhav Agarwal sold 7,047 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $46.17, for a total value of $325,359.99. Following the sale, the chief financial officer owned 169,282 shares in the company, valued at approximately $7,815,749.94. The trade was a 4.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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, Director Robert I. Theis sold 2,530 shares of the stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $40.28, for a total transaction of $101,908.40. Following the sale, the director owned 30,834 shares of the company's stock, valued at $1,241,993.52. This trade represents a 7.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 38,628 shares of company stock worth $1,656,201 over the last three months. 7.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Alyeska Investment Group L.P. acquired a new position in RingCentral during the 3rd quarter worth about $53,365,000. LSV Asset Management increased its position 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 acquiring an additional 1,686,900 shares in the last quarter. Quantinno Capital Management LP raised its stake in shares of RingCentral by 150.4% in the first quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker's stock worth $73,524,000 after acquiring an additional 1,187,437 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of RingCentral by 35.4% in the fourth 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, Russell Investments Group Ltd. lifted its position in shares of RingCentral by 138.6% during the third quarter. Russell Investments Group Ltd. now owns 811,747 shares of the software maker's stock worth $23,113,000 after purchasing an additional 471,559 shares in the last quarter. Institutional investors own 98.61% of the company's stock.

RingCentral Price Performance

The firm has a market capitalization of $4.35 billion, a P/E ratio of 41.32, a PEG ratio of 1.42 and a beta of 1.14. The company's 50 day moving average price is $40.41 and its 200 day moving average price is $36.84.

RingCentral (NYSE:RNG - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The software maker reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.06. The firm had revenue of $657.01 million during the quarter, compared to analysts' expectations of $650.53 million. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. RingCentral's revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.06 EPS. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. On average, research analysts anticipate that RingCentral, Inc. will post 2.78 EPS for the current fiscal year.

RingCentral Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be issued a $0.125 dividend. This is a positive change from RingCentral's previous quarterly dividend of $0.07. This represents a $0.50 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, August 6th. RingCentral's dividend payout ratio (DPR) is 24.00%.

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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