RingCentral, Inc. (NYSE:RNG) Receives Average Rating of “Hold” from Brokerages

RingCentral, Inc. (NYSE:RNG) has received an average rating of “Hold” from the twelve analysts that are presently covering the stock, Marketbeat reports. Eight equities research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $56.00.

Several analysts recently commented on RNG shares. Mizuho raised 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. Oppenheimer increased their target price on shares of RingCentral from $50.00 to $85.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 1st. Piper Sandler lifted their target price on shares of RingCentral from $40.00 to $43.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Weiss Ratings restated a “hold (c)” rating on shares of RingCentral in a report on Friday, July 17th. Finally, Needham & Company LLC upped their price target on shares of RingCentral from $55.00 to $85.00 and gave the stock a “buy” rating in a research note on Friday, August 28th.

RingCentral Price Performance

RingCentral stock opened at $79.84 on Friday. The stock has a market cap of $6.67 billion, a price-to-earnings ratio of 63.87, a price-to-earnings-growth ratio of 1.34 and a beta of 1.14. The firm has a 50-day moving average of $62.65 and a two-hundred day moving average of $47.84. RingCentral has a 1 year low of $24.14 and a 1 year high of $79.93.

RingCentral (NYSE:RNG) last posted its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share for the quarter, beating 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 firm had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. During the same quarter in the previous year, the firm posted $1.06 earnings per share. 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 expect that RingCentral will post 2.89 earnings per share for the current year.

RingCentral Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were given a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Thursday, August 6th. This is an increase from RingCentral’s previous quarterly dividend of $0.07. RingCentral’s payout ratio is currently 40.00%.

Insider Buying and Selling

In other news, CEO Vladimir Shmunis sold 15,556 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $71.78, for a total transaction of $1,116,609.68. Following the completion of the sale, the chief executive officer directly owned 190,271 shares of the company’s stock, valued at $13,657,652.38. This trade represents a 7.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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, COO Kira Makagon sold 36,185 shares of RingCentral stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $70.11, for a total value of $2,536,930.35. Following the sale, the chief operating officer owned 245,385 shares of the company’s stock, valued at approximately $17,203,942.35. This represents a 12.85% 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 90 days, insiders sold 87,156 shares of company stock worth $6,078,491. Insiders own 7.30% of the company’s stock.

Institutional Trading of RingCentral

Several large investors have recently added to or reduced their stakes in RNG. LSV Asset Management increased its stake in shares of RingCentral by 142.4% during the fourth 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 during the period. Quantinno Capital Management LP lifted its holdings in RingCentral by 150.4% during the 1st quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker’s stock valued at $73,524,000 after purchasing an additional 1,187,437 shares during the last quarter. Invenomic Capital Management LP lifted its holdings in RingCentral by 3.7% during the 4th quarter. Invenomic Capital Management LP now owns 1,538,034 shares of the software maker’s stock valued at $44,418,000 after purchasing an additional 55,587 shares during the last quarter. Jupiter Asset Management Ltd. boosted its position in RingCentral by 11.4% in the fourth quarter. Jupiter Asset Management Ltd. now owns 1,456,270 shares of the software maker’s stock valued at $42,057,000 after buying an additional 149,532 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in RingCentral by 8.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,308,949 shares of the software maker’s stock valued at $48,676,000 after buying an additional 101,002 shares in the last quarter. 98.61% of the stock is owned by institutional investors.

RingCentral Company Profile

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.