RingCentral (NYSE:RNG) Trading 7.6% Higher – What’s Next?

RingCentral, Inc. (NYSE:RNG)’s share price was up 7.6% during mid-day trading on Tuesday . The company traded as high as $42.26 and last traded at $42.2050. Approximately 390,445 shares changed hands during trading, a decline of 81% from the average daily volume of 2,080,481 shares. The stock had previously closed at $39.24.

Analyst Ratings Changes

A number of research firms recently weighed in on RNG. Morgan Stanley boosted their price target on shares of RingCentral from $33.00 to $40.00 and gave the stock an “equal weight” rating in a research report on Monday, May 11th. Jefferies Financial Group reissued a “hold” rating and issued a $40.00 target price on shares of RingCentral in a research note on Saturday, May 9th. Needham & Company LLC boosted their target price on RingCentral from $36.00 to $55.00 and gave the stock a “buy” rating in a report on Friday, March 13th. Robert W. Baird set a $45.00 price target on RingCentral in a research report on Friday, May 8th. Finally, Oppenheimer reiterated an “outperform” rating and set a $50.00 price objective on shares of RingCentral in a research report on Friday, May 8th. Three analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, RingCentral presently has a consensus rating of “Hold” and a consensus target price of $43.00.

RingCentral Stock Up 6.6%

The company’s 50-day moving average is $40.74 and its 200-day moving average is $35.66. The stock has a market capitalization of $3.51 billion, a price-to-earnings ratio of 44.54, a PEG ratio of 1.18 and a beta of 1.14.

RingCentral (NYSE:RNG) last posted its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.03. The business had revenue of $644.20 million during the quarter, compared to analysts’ expectations of $642.73 million. RingCentral had a net margin of 3.31% and a negative return on equity of 33.75%. The business’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the company 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. Sell-side analysts anticipate that RingCentral, Inc. will post 2.78 EPS for the current year.

RingCentral Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Shareholders of record on Tuesday, June 2nd were paid a dividend of $0.075 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $0.30 annualized dividend and a yield of 0.7%. RingCentral’s dividend payout ratio (DPR) is 31.91%.

Insider Buying and Selling

In related news, Director Robert I. Theis sold 2,530 shares of the firm’s 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 completion of the sale, the director directly owned 30,834 shares of the company’s stock, valued at approximately $1,241,993.52. This trade represents a 7.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy Guggenheim Shenkan sold 1,265 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $40.59, for a total transaction of $51,346.35. Following the completion of the sale, the director owned 29,372 shares in the company, valued at approximately $1,192,209.48. This trade represents a 4.13% 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 three months, insiders have sold 45,451 shares of company stock valued at $1,933,565. 7.30% of the stock is currently owned by company insiders.

Institutional Trading of RingCentral

Institutional investors have recently added to or reduced their stakes in the stock. WealthCollab LLC boosted its position in shares of RingCentral by 59.7% during the first quarter. WealthCollab LLC now owns 693 shares of the software maker’s stock worth $26,000 after buying an additional 259 shares during the period. Versant Capital Management Inc grew its position in RingCentral by 2.3% in the 2nd quarter. Versant Capital Management Inc now owns 11,521 shares of the software maker’s stock valued at $449,000 after acquiring an additional 259 shares in the last quarter. Pictet Asset Management Holding SA increased its stake in RingCentral by 3.1% during the first quarter. Pictet Asset Management Holding SA now owns 11,883 shares of the software maker’s stock worth $442,000 after purchasing an additional 362 shares during the period. Rothschild Investment LLC boosted its stake in shares of RingCentral by 15.8% in the fourth quarter. Rothschild Investment LLC now owns 2,681 shares of the software maker’s stock valued at $77,000 after purchasing an additional 366 shares during the period. Finally, Sovereign Financial Group Inc. increased its stake in RingCentral by 4.2% during the 1st quarter. Sovereign Financial Group Inc. now owns 10,170 shares of the software maker’s stock worth $378,000 after buying an additional 409 shares during the period. 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.