RingCentral (NYSE:RNG) Shares Up 7% After Analyst Upgrade

Shares of RingCentral, Inc. (NYSE:RNG) traded up 7% during trading on Monday after Mizuho raised their price target on the stock from $38.00 to $40.00. Mizuho currently has a neutral rating on the stock. RingCentral traded as high as $52.88 and last traded at $51.7020. 755,349 shares traded hands during trading, a decline of 64% from the average session volume of 2,107,862 shares. The stock had previously closed at $48.31.

RNG has been the topic of several other reports. Weiss Ratings reiterated a “hold (c)” rating on shares of RingCentral in a report on Friday, July 17th. Oppenheimer reissued an “outperform” rating and set a $50.00 target price on shares of RingCentral in a report on Friday, May 8th. Wells Fargo & Company raised their target price on RingCentral from $32.00 to $43.00 and gave the company an “equal weight” rating in a research report on Friday, May 8th. Piper Sandler lifted their price target on RingCentral from $40.00 to $43.00 and gave the stock a “neutral” rating in a research note on Friday. Finally, Morgan Stanley boosted their price target on RingCentral from $33.00 to $40.00 and gave the stock an “equal weight” rating in a research report on Monday, May 11th. Three research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $44.40.

Insider Activity at RingCentral

In other RingCentral news, COO Kira Makagon sold 16,988 shares of the 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 in the company, valued at approximately $9,049,278.96. This represents a 7.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy Guggenheim Shenkan sold 1,265 shares of the business’s 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 transaction, the director owned 29,372 shares in the company, valued at approximately $1,192,209.48. This represents a 4.13% 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. Insiders have sold 38,628 shares of company stock worth $1,656,201 in the last 90 days. 7.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new stake in RingCentral during the first quarter worth about $697,000. Robertson Stephens Wealth Management LLC boosted its holdings in RingCentral by 124.7% in the 4th quarter. Robertson Stephens Wealth Management LLC now owns 90,311 shares of the software maker’s stock valued at $2,608,000 after purchasing an additional 50,122 shares during the last quarter. LSV Asset Management grew its stake 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 valued at $82,935,000 after buying an additional 1,686,900 shares during the period. Harel Insurance Investments & Financial Services Ltd. grew its stake in shares of RingCentral by 60.0% in the 4th quarter. Harel Insurance Investments & Financial Services Ltd. now owns 280,323 shares of the software maker’s stock valued at $8,096,000 after buying an additional 105,145 shares during the period. Finally, Jupiter Asset Management Ltd. increased its holdings in shares of RingCentral by 11.4% during the 4th quarter. Jupiter Asset Management Ltd. now owns 1,456,270 shares of the software maker’s stock worth $42,057,000 after buying an additional 149,532 shares during the last quarter. Institutional investors and hedge funds own 98.61% of the company’s stock.

RingCentral Trading Up 11.4%

The firm has a market cap of $4.51 billion, a price-to-earnings ratio of 43.04, a P/E/G ratio of 1.42 and a beta of 1.14. The stock’s fifty day moving average price is $40.68 and its 200-day moving average price is $37.02.

RingCentral (NYSE:RNG) last released its quarterly earnings data on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, beating analysts’ consensus estimates of $1.16 by $0.06. The firm had revenue of $657.01 million for the quarter, compared to analysts’ expectations of $650.53 million. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The firm’s quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.06 earnings per share. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. Analysts predict that RingCentral, Inc. will post 2.78 earnings per share for the current year.

RingCentral Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be paid a $0.125 dividend. This is a boost from RingCentral’s previous quarterly dividend of $0.07. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $0.50 annualized dividend and a dividend yield of 0.9%. RingCentral’s dividend payout ratio is currently 24.00%.

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.