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 currently covering the company, Marketbeat.com reports. Nine analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 12-month price target among brokers that have covered the stock in the last year is $43.00.

A number of brokerages recently issued reports on RNG. Jefferies Financial Group reiterated a “hold” rating and set a $40.00 price objective on shares of RingCentral in a research note on Saturday, May 9th. Wells Fargo & Company raised 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. Robert W. Baird set a $45.00 price target on shares of RingCentral in a report on Friday, May 8th. Needham & Company LLC upped their price target on shares of RingCentral from $36.00 to $55.00 and gave the stock a “buy” rating in a research report on Friday, March 13th. Finally, Oppenheimer reissued an “outperform” rating and issued a $50.00 price objective on shares of RingCentral in a research note on Friday, May 8th.

RingCentral Stock Performance

NYSE RNG opened at $40.07 on Friday. The company has a market capitalization of $3.36 billion, a PE ratio of 42.63, a price-to-earnings-growth ratio of 1.18 and a beta of 1.14. The business’s fifty day moving average is $40.72 and its 200 day moving average is $35.55. RingCentral has a fifty-two week low of $23.59 and a fifty-two week high of $49.85.

RingCentral (NYSE:RNG) last issued its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The business had revenue of $644.20 million during the quarter, compared to analysts’ expectations of $642.73 million. During the same quarter in the prior year, the business posted $1.00 earnings per share. The business’s quarterly revenue was up 5.3% on a year-over-year basis. 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 forecast that RingCentral will post 2.78 EPS for the current year.

RingCentral Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Tuesday, June 2nd were issued a $0.075 dividend. 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 is currently 31.91%.

Insider Buying and Selling

In other news, CFO Vaibhav Agarwal sold 7,047 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $46.17, for a total value of $325,359.99. Following the transaction, the chief financial officer directly owned 169,282 shares in the company, valued at $7,815,749.94. The trade was a 4.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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, Director Amy Guggenheim Shenkan sold 1,265 shares of the company’s stock in a transaction dated 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 transaction, the director directly owned 29,372 shares of the company’s stock, valued at approximately $1,192,209.48. This trade represents a 4.13% 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. Insiders have sold a total of 45,451 shares of company stock worth $1,933,565 in the last three months. Corporate insiders own 7.30% of the company’s stock.

Institutional Trading of RingCentral

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capital World Investors grew its stake in RingCentral by 20.9% during the third quarter. Capital World Investors now owns 11,735,991 shares of the software maker’s stock valued at $332,598,000 after acquiring an additional 2,031,861 shares in the last quarter. Alyeska Investment Group L.P. bought a new stake in RingCentral in the 3rd quarter valued at $53,365,000. LSV Asset Management lifted its stake in RingCentral by 142.4% in the 4th quarter. LSV Asset Management now owns 2,871,700 shares of the software maker’s stock worth $82,935,000 after purchasing an additional 1,686,900 shares in the last quarter. Quantinno Capital Management LP lifted its stake 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 worth $73,524,000 after purchasing an additional 1,187,437 shares in the last quarter. Finally, AQR Capital Management LLC boosted its holdings in shares of RingCentral by 35.4% during the 4th quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker’s stock valued at $57,874,000 after purchasing an additional 523,966 shares during the last quarter. Institutional investors own 98.61% of the company’s stock.

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.