RingCentral (NYSE:RNG) Reaches New 1-Year High – Here’s Why

RingCentral, Inc. (NYSE:RNG) shares reached a new 52-week high during trading on Tuesday . The company traded as high as $78.50 and last traded at $78.2350, with a volume of 160097 shares changing hands. The stock had previously closed at $77.30.

Analysts Set New Price Targets

Several research analysts recently weighed in on RNG shares. Oppenheimer boosted their target price on shares of RingCentral from $50.00 to $85.00 and gave the company an “outperform” rating in a research note on Tuesday, September 1st. Mizuho lifted their price target on shares of RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Weiss Ratings reissued a “hold (c)” rating on shares of RingCentral in a research report on Friday, July 17th. Royal Bank Of Canada assumed coverage on shares of RingCentral in a research note on Thursday, September 3rd. They set an “outperform” rating and a $85.00 price objective on the stock. Finally, Rosenblatt Securities restated a “buy” rating and set a $50.00 target price on shares of RingCentral in a research report on Friday, July 24th. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $56.00.

RingCentral Trading Down 0.1%

The stock has a market capitalization of $6.45 billion, a price-to-earnings ratio of 61.77, a price-to-earnings-growth ratio of 1.24 and a beta of 1.14. The business has a 50 day simple moving average of $61.88 and a 200-day simple moving average of $47.55.

RingCentral (NYSE:RNG) last announced 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. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. The business had revenue of $657.01 million for the quarter, compared to analyst estimates of $650.53 million. During the same period in the prior year, the firm posted $1.06 EPS. The company’s revenue was up 5.9% on a year-over-year basis. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. Research analysts predict that RingCentral, Inc. will post 2.89 EPS for the current year.

RingCentral Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th were paid a dividend of $0.125 per share. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $0.50 annualized dividend and a dividend yield of 0.6%. This is a boost from RingCentral’s previous quarterly dividend of $0.07. RingCentral’s dividend payout ratio is presently 40.00%.

Insider Transactions at RingCentral

In other RingCentral news, CEO Vladimir Shmunis sold 11,165 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $76.58, for a total transaction of $855,015.70. Following the completion of the sale, the chief executive officer directly owned 179,106 shares in the company, valued at $13,715,937.48. This represents a 5.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, 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 4,172 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $70.36, for a total value of $293,541.92. Following the completion of the transaction, the chief accounting officer owned 65,692 shares in the company, valued at approximately $4,622,089.12. This trade represents a 5.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 87,156 shares of company stock valued at $6,078,491. Corporate insiders own 7.30% of the company’s stock.

Hedge Funds Weigh In On RingCentral

Hedge funds have recently made changes to their positions in the business. Integrated Wealth Concepts LLC purchased a new stake in RingCentral during the 2nd quarter worth $113,000. IFP Advisors Inc raised its position in RingCentral by 2,597.9% in the second quarter. IFP Advisors Inc now owns 99,068 shares of the software maker’s stock valued at $3,862,000 after purchasing an additional 95,396 shares during the period. Baird Financial Group Inc. lifted its stake in shares of RingCentral by 7.7% during the second quarter. Baird Financial Group Inc. now owns 254,432 shares of the software maker’s stock worth $9,918,000 after purchasing an additional 18,220 shares in the last quarter. Nykredit A S purchased a new stake in shares of RingCentral in the second quarter worth about $63,000. Finally, Corient Private Wealth LP grew its stake in shares of RingCentral by 144.3% in the second quarter. Corient Private Wealth LP now owns 250,095 shares of the software maker’s stock valued at $9,749,000 after buying an additional 147,710 shares in the last quarter. Hedge funds and other institutional investors own 98.61% of the company’s stock.

About RingCentral

RingCentral, Inc is a cloud communications and collaboration company that provides business communications software through a subscription-based platform. Its services are designed to help organizations manage voice, messaging, video meetings, team collaboration and other communications across devices and locations.

The company’s offerings include RingEX, its unified communications platform; RingCentral Video for online meetings and collaboration; RingCentral Events for virtual and hybrid events; and contact center products, including RingCX.