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

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

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on RNG shares. Morgan Stanley lifted their price target on shares of RingCentral from $33.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Monday, May 11th. Needham & Company LLC raised their price objective on shares of RingCentral from $36.00 to $55.00 and gave the company a “buy” rating in a report on Friday, March 13th. Oppenheimer reaffirmed an “outperform” rating and set a $50.00 price objective on shares of RingCentral in a research report on Friday, May 8th. Wells Fargo & Company boosted their target price on shares of RingCentral from $32.00 to $43.00 and gave the stock an “equal weight” rating in a research note on Friday, May 8th. Finally, Jefferies Financial Group restated a “hold” rating and issued a $40.00 price target on shares of RingCentral in a research note on Saturday, May 9th. Three equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, RingCentral currently has an average rating of “Hold” and an average price target of $43.00.

RingCentral Trading Up 6.6%

The firm’s fifty day moving average price is $40.74 and its 200-day moving average price is $35.66. The firm has a market cap 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 announced its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 EPS for the quarter, topping the consensus estimate of $1.17 by $0.03. RingCentral had a net margin of 3.31% and a negative return on equity of 33.75%. The firm had revenue of $644.20 million for the quarter, compared to analyst estimates of $642.73 million. During the same period last year, the business earned $1.00 EPS. RingCentral’s revenue for the quarter was up 5.3% compared to the same quarter last year. 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, sell-side analysts expect that RingCentral, Inc. will post 2.78 earnings per share for the current year.

RingCentral Dividend Announcement

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

Insider Activity

In other news, Director Amy Guggenheim Shenkan sold 1,265 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $40.59, for a total value of $51,346.35. Following the completion of the sale, the director directly owned 29,372 shares of the company’s stock, valued at approximately $1,192,209.48. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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, CAO Tarun Arora sold 3,615 shares of the firm’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $43.00, for a total transaction of $155,445.00. Following the transaction, the chief accounting officer owned 68,100 shares in the company, valued at approximately $2,928,300. This trade represents a 5.04% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 45,451 shares of company stock worth $1,933,565 over the last ninety days. 7.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RNG. Versant Capital Management Inc increased its stake in RingCentral by 2.3% in the second quarter. Versant Capital Management Inc now owns 11,521 shares of the software maker’s stock valued at $449,000 after purchasing an additional 259 shares during the period. Janus Henderson Group PLC boosted its stake in shares of RingCentral by 412.7% during the first quarter. Janus Henderson Group PLC now owns 177,966 shares of the software maker’s stock worth $6,620,000 after buying an additional 143,254 shares during the period. California State Teachers Retirement System grew its holdings in shares of RingCentral by 14.3% during the first quarter. California State Teachers Retirement System now owns 82,885 shares of the software maker’s stock worth $3,082,000 after buying an additional 10,341 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of RingCentral by 10.0% during the first quarter. The Manufacturers Life Insurance Company now owns 13,750 shares of the software maker’s stock worth $511,000 after buying an additional 1,246 shares during the last quarter. Finally, Quantinno Capital Management LP increased its position in RingCentral by 150.4% in 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 acquiring an additional 1,187,437 shares during the period. 98.61% of the stock is owned by hedge funds and other institutional investors.

About RingCentral

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.