RingCentral (NYSE:RNG) Trading 4.9% Higher – Still a Buy?

RingCentral, Inc. (NYSE:RNG)’s stock price shot up 4.9% during mid-day trading on Tuesday . The stock traded as high as $42.86 and last traded at $42.6920. 323,581 shares traded hands during trading, a decline of 86% from the average session volume of 2,263,052 shares. The stock had previously closed at $40.68.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on RNG shares. Mizuho lifted their price target on RingCentral from $27.00 to $32.00 and gave the company a “neutral” rating in a research report on Friday, February 20th. Wells Fargo & Company increased 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. Jefferies Financial Group restated a “hold” rating and issued a $40.00 target price on shares of RingCentral in a research note on Saturday, May 9th. Robert W. Baird set a $45.00 price target on RingCentral in a research report on Friday, May 8th. Finally, Piper Sandler increased their price target on shares of RingCentral from $28.00 to $37.00 and gave the stock a “neutral” rating in a report on Monday, February 23rd. Three equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $43.00.

RingCentral Price Performance

The stock has a market cap of $3.55 billion, a P/E ratio of 44.98, a PEG ratio of 1.30 and a beta of 1.13. The firm’s fifty day moving average price is $39.44 and its two-hundred day moving average price is $32.97.

RingCentral (NYSE:RNG) last posted its quarterly earnings data on Thursday, May 7th. The software maker reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The company had revenue of $644.20 million during the quarter, compared to analyst estimates of $642.73 million. The firm’s quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter last year, the company earned $1.00 earnings per share. 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, research analysts expect that RingCentral, Inc. will post 2.69 earnings per share for the current fiscal year.

RingCentral Dividend Announcement

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

Insiders Place Their Bets

In other RingCentral news, CAO Tarun Arora sold 953 shares of the firm’s stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $43.00, for a total value of $40,979.00. Following the sale, the chief accounting officer owned 74,539 shares of the company’s stock, valued at $3,205,177. This trade represents a 1.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Agarwal sold 2,220 shares of the firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $40.62, for a total value of $90,176.40. Following the completion of the sale, the chief financial officer directly owned 140,416 shares in the company, valued at approximately $5,703,697.92. The trade was a 1.56% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. In the last quarter, insiders sold 262,074 shares of company stock worth $9,402,885. 7.30% of the stock is currently owned by insiders.

Institutional Trading of RingCentral

Several institutional investors and hedge funds have recently modified their holdings of RNG. Empowered Funds LLC raised its holdings in shares of RingCentral by 9.0% in the 1st quarter. Empowered Funds LLC now owns 11,417 shares of the software maker’s stock valued at $283,000 after acquiring an additional 940 shares in the last quarter. Woodline Partners LP raised its holdings in shares of RingCentral by 14.8% during the 1st quarter. Woodline Partners LP now owns 159,474 shares of the software maker’s stock valued at $3,949,000 after buying an additional 20,518 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of RingCentral by 2.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 261,190 shares of the software maker’s stock valued at $6,467,000 after buying an additional 5,398 shares in the last quarter. Creative Planning purchased a new position in shares of RingCentral during the 2nd quarter valued at about $274,000. Finally, Invesco Ltd. raised its holdings in shares of RingCentral by 10.8% during the 2nd quarter. Invesco Ltd. now owns 137,935 shares of the software maker’s stock valued at $3,910,000 after buying an additional 13,446 shares in the last quarter. Hedge funds and other institutional investors 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.