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

RingCentral, Inc. (NYSE:RNG) saw unusually large options trading activity on Friday. Traders acquired 2,560 call options on the company. This is an increase of 138% compared to the typical daily volume of 1,076 call options.

Trending Headlines about RingCentral

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

RingCentral Trading Up 25.1%

Shares of RNG opened at $48.33 on Friday. The firm has a market cap of $4.05 billion, a PE ratio of 38.66, a P/E/G ratio of 1.14 and a beta of 1.14. RingCentral has a 12 month low of $23.59 and a 12 month high of $50.14. The stock has a fifty day moving average price of $40.41 and a 200-day moving average price of $36.78.

RingCentral (NYSE:RNG) last released its earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.06. The firm had revenue of $657.01 million for the quarter, compared to the consensus estimate of $650.53 million. RingCentral had a negative return on equity of 34.98% and a net margin of 4.27%.The firm’s revenue was up 5.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.06 EPS. 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 business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th will be paid a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 6th. This is an increase from RingCentral’s previous quarterly dividend of $0.07. RingCentral’s dividend payout ratio (DPR) is 31.91%.

Insider Buying and Selling

In other RingCentral news, COO Kira Makagon sold 16,988 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $42.54, for a total value of $722,669.52. Following the completion of the sale, the chief operating officer owned 212,724 shares of the company’s stock, valued at $9,049,278.96. This trade represents a 7.40% decrease in their ownership of the stock. The sale 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. Also, Director Robert I. Theis sold 2,530 shares of the business’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $40.28, for a total value of $101,908.40. Following the transaction, the director owned 30,834 shares of the company’s stock, valued at $1,241,993.52. This trade represents a 7.58% 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 sold a total of 44,498 shares of company stock worth $1,892,586 over the last three months. 7.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On RingCentral

Several hedge funds have recently modified their holdings of RNG. LSV Asset Management grew its holdings in RingCentral by 142.4% in the fourth quarter. LSV Asset Management now owns 2,871,700 shares of the software maker’s stock valued at $82,935,000 after purchasing an additional 1,686,900 shares during the period. AQR Capital Management LLC lifted its stake in shares of RingCentral by 35.4% in the fourth quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker’s stock worth $57,874,000 after buying an additional 523,966 shares in the last quarter. Quantinno Capital Management LP lifted its position in RingCentral by 150.4% during the first quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker’s stock worth $73,524,000 after buying an additional 1,187,437 shares in the last quarter. Alyeska Investment Group L.P. acquired a new position in RingCentral in the third quarter valued at approximately $53,365,000. Finally, Marshall Wace LLP increased its position in shares of RingCentral by 4.4% during the third quarter. Marshall Wace LLP now owns 1,794,978 shares of the software maker’s stock valued at $50,870,000 after acquiring an additional 75,709 shares during the last quarter. 98.61% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have recently weighed in on RNG. Mizuho lifted their target price on RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday. Rosenblatt Securities reiterated a “buy” rating and issued a $50.00 target price on shares of RingCentral in a report on Friday. Piper Sandler increased their price target on RingCentral from $40.00 to $43.00 and gave the stock a “neutral” rating in a research report on Friday. Oppenheimer restated an “outperform” rating and set a $50.00 price target on shares of RingCentral in a research note on Friday, May 8th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of RingCentral in a report on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $44.40.

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.