Stock Traders Purchase Large Volume of Ringcentral Call Options (NYSE:RNG)

Ringcentral, Inc. (NYSE:RNG) was the target of unusually large options trading activity on Friday. Stock investors bought 2,473 call options on the company. This is an increase of 206% compared to the typical volume of 809 call options.

Analyst Ratings Changes

RNG has been the subject of a number of research analyst reports. Rosenblatt Securities raised their price target on Ringcentral from $32.00 to $37.50 and gave the stock a “buy” rating in a research note on Friday. Mizuho set a $32.00 price target on shares of Ringcentral in a research note on Friday. Needham & Company LLC reiterated a “buy” rating and issued a $36.00 target price on shares of Ringcentral in a report on Tuesday, November 4th. Oppenheimer restated an “outperform” rating on shares of Ringcentral in a report on Friday. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Ringcentral in a report on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Ringcentral currently has an average rating of “Hold” and an average price target of $32.27.

Ringcentral Price Performance

Ringcentral stock traded up $11.10 during mid-day trading on Friday, reaching $40.49. 4,547,626 shares of the company traded hands, compared to its average volume of 2,354,168. The company has a market capitalization of $3.50 billion, a price-to-earnings ratio of 288.92, a price-to-earnings-growth ratio of 1.22 and a beta of 1.23. Ringcentral has a fifty-two week low of $20.58 and a fifty-two week high of $40.39. The firm’s fifty day moving average is $28.21 and its two-hundred day moving average is $28.76.

Ringcentral (NYSE:RNG) last released its earnings results on Thursday, February 19th. The software maker reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.04. Ringcentral had a negative return on equity of 22.38% and a net margin of 0.53%.The firm had revenue of $644.03 million for the quarter, compared to the consensus estimate of $643.52 million. During the same period in the prior year, the firm earned $0.98 EPS. The firm’s revenue was up 4.8% on a year-over-year basis. Ringcentral has set its FY 2026 guidance at 4.760-4.970 EPS and its Q1 2026 guidance at 1.160-1.190 EPS. As a group, equities research analysts predict that Ringcentral will post 1.29 earnings per share for the current year.

Ringcentral Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 9th will be paid a $0.075 dividend. This represents a $0.30 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, March 9th.

Insider Activity

In related news, CEO Vladimir Shmunis sold 27,018 shares of the stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $27.68, for a total value of $747,858.24. Following the completion of the transaction, the chief executive officer owned 262,240 shares of the company’s stock, valued at approximately $7,258,803.20. This trade represents a 9.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Tarun Arora sold 3,888 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $28.70, for a total value of $111,585.60. Following the sale, the chief accounting officer directly owned 93,412 shares in the company, valued at $2,680,924.40. The trade was a 4.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 53,141 shares of company stock worth $1,491,632. 7.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Ringcentral

Large investors have recently bought and sold shares of the company. Global Retirement Partners LLC raised its position in Ringcentral by 98.5% during the 3rd quarter. Global Retirement Partners LLC now owns 901 shares of the software maker’s stock worth $26,000 after buying an additional 447 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Ringcentral by 269.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker’s stock worth $29,000 after acquiring an additional 738 shares during the period. Harvest Fund Management Co. Ltd purchased a new position in shares of Ringcentral during the third quarter worth $30,000. Jones Financial Companies Lllp raised its holdings in shares of Ringcentral by 61.6% during the third quarter. Jones Financial Companies Lllp now owns 1,217 shares of the software maker’s stock worth $37,000 after purchasing an additional 464 shares during the last quarter. Finally, Covestor Ltd lifted its position in Ringcentral by 198.5% during the fourth quarter. Covestor Ltd now owns 1,594 shares of the software maker’s stock valued at $46,000 after purchasing an additional 1,060 shares during the period. Hedge funds and other institutional investors own 98.61% of the company’s stock.

Ringcentral News Roundup

Here are the key news stories impacting Ringcentral this week:

• Positive Sentiment: Q4 EPS beat and revenue roughly in line — RingCentral reported $1.18 EPS vs. $1.14 consensus and revenue of $644M (about in line), showing sequential improvement and driving near‑term bullishness. Read More.
• Positive Sentiment: Big guidance raise: Q1 and FY2026 EPS guidance well above Street — management set Q1 EPS of $1.16–$1.19 and FY EPS of $4.76–$4.97, materially above consensus, which is the main driver of today’s upside. Read More.
• Positive Sentiment: AI tailwinds and targets for subscription growth and FCF — management is targeting 4.5%–5.5% subscription revenue growth and ~$$590M of free cash flow in 2026, pointing to improved profitability leverage from AI product momentum. Read More.
• Positive Sentiment: Shareholder return move: quarterly dividend declared — RingCentral declared a $0.075 quarterly dividend (ex‑dividend March 9, payable March 16), adding to investor yield and signaling confidence in cash generation.
• Positive Sentiment: S&P index inclusion — the company’s addition to S&P indices can increase passive fund demand and improve liquidity, a supportive technical for the stock. Read More.
• Neutral Sentiment: Revenue growth remains modest — revenue was up ~4.8% year‑over‑year, which is progress but not standout growth for a software name; investors will watch whether AI initiatives accelerate top‑line trajectory. Read More.
• Negative Sentiment: Profitability and valuation concerns persist — RingCentral still shows a negative return on equity (~-22%) and slim net margins, while the stock trades at a high P/E (~210x), leaving it vulnerable if execution on guidance or FCF targets slips.

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.