Investors Buy High Volume of Call Options on RingCentral (NYSE:RNG)

RingCentral, Inc. (NYSE:RNG) was the target of some unusual options trading activity on Friday. Investors acquired 2,560 call options on the stock. This represents an increase of 138% compared to the average daily volume of 1,076 call options.

RingCentral Stock Performance

Shares of RNG stock opened at $48.33 on Friday. RingCentral has a one year low of $23.59 and a one year high of $50.14. The company’s 50-day simple moving average is $40.41 and its 200-day simple moving average is $36.78. The stock has a market capitalization of $4.05 billion, a price-to-earnings ratio of 38.66, a PEG ratio of 1.42 and a beta of 1.14.

RingCentral (NYSE:RNG) last announced its quarterly earnings data 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 negative return on equity of 34.98% and a net margin of 4.27%.The firm had revenue of $657.01 million during the quarter, compared to analyst estimates of $650.53 million. During the same period in the previous year, the company earned $1.06 earnings per share. RingCentral’s quarterly 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. As a group, research analysts forecast that RingCentral will post 2.78 EPS for the current year.

RingCentral Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be given a dividend of $0.125 per share. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $0.50 annualized dividend and a dividend yield of 1.0%. This is an increase from RingCentral’s previous quarterly dividend of $0.07. RingCentral’s dividend payout ratio is currently 40.00%.

More RingCentral News

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RingCentral reported Q2 EPS of $1.22 versus $1.16 expected and revenue of $657.0 million versus $650.5 million expected, showing a solid beat on both the top and bottom lines. RingCentral Q2 Earnings Report
• Positive Sentiment: The company raised Q3 2026 guidance to EPS of $1.25-$1.30 and revenue of $664 million-$670 million, both above consensus, and lifted FY 2026 EPS guidance to $4.96-$5.10. RingCentral Financial Results
• Positive Sentiment: Management and recent commentary point to stronger subscription growth, higher margins, and expanding AI adoption, which are supporting the improved growth outlook. Zacks Q2 Earnings Article
• Positive Sentiment: RingCentral also announced a 66.7% increase in its quarterly dividend to $0.125 per share, signaling confidence in cash generation and capital returns. Insider Monkey Article
• Neutral Sentiment: Mizuho raised its price target to $40 but kept a neutral rating, which is below the current trading level and suggests some caution on valuation. Mizuho Price Target Update
• Neutral Sentiment: Rosenblatt reaffirmed a buy rating with a $50 target, broadly reinforcing the positive post-earnings sentiment. Rosenblatt Rating Update

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on RNG. Wells Fargo & Company increased their price target on RingCentral from $32.00 to $43.00 and gave the company an “equal weight” rating in a report on Friday, May 8th. Rosenblatt Securities restated a “buy” rating and set a $50.00 price objective on shares of RingCentral in a report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of RingCentral in a research report on Friday, July 17th. Piper Sandler increased their target price on RingCentral from $40.00 to $43.00 and gave the company a “neutral” rating in a research note on Friday. Finally, Mizuho raised their price target on shares of RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday. Three research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $44.40.

Insider Buying and Selling at RingCentral

In other RingCentral news, COO Kira Makagon sold 16,988 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $42.54, for a total value of $722,669.52. Following the transaction, the chief operating officer owned 212,724 shares in the company, valued at $9,049,278.96. The trade was a 7.40% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tarun Arora sold 3,615 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $43.00, for a total transaction of $155,445.00. Following the completion of the transaction, the chief accounting officer directly owned 68,100 shares of the company’s stock, valued at approximately $2,928,300. The trade was a 5.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 90 days, insiders sold 44,498 shares of company stock worth $1,892,586. 7.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On RingCentral

A number of hedge funds have recently added to or reduced their stakes in the business. Alyeska Investment Group L.P. acquired a new stake in shares of RingCentral during the third quarter worth $53,365,000. LSV Asset Management lifted its position in shares of 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 buying an additional 1,686,900 shares during the last quarter. Quantinno Capital Management LP boosted its holdings in shares of 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 buying an additional 1,187,437 shares during the period. AQR Capital Management LLC boosted its holdings in shares of RingCentral by 35.4% in 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 buying an additional 523,966 shares during the period. Finally, Russell Investments Group Ltd. grew its position in shares of RingCentral by 138.6% during the 3rd quarter. Russell Investments Group Ltd. now owns 811,747 shares of the software maker’s stock valued at $23,113,000 after buying an additional 471,559 shares during the last quarter. Institutional investors and hedge funds 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.