RingCentral (NYSE:RNG) Shares Up 6% – Should You Buy?

RingCentral, Inc. (NYSE:RNG) shot up 6% on Thursday . The stock traded as high as $37.55 and last traded at $37.8180. 144,838 shares were traded during trading, a decline of 94% from the average session volume of 2,563,412 shares. The stock had previously closed at $35.69.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on RNG. Rosenblatt Securities raised their price target on RingCentral from $32.00 to $37.50 and gave the stock a “buy” rating in a research report on Friday, February 20th. Needham & Company LLC boosted their price objective on shares of RingCentral from $36.00 to $55.00 and gave the company a “buy” rating in a research report on Friday, March 13th. UBS Group set a $38.00 target price on shares of RingCentral in a research note on Friday, February 20th. Morgan Stanley raised their target price on shares of RingCentral from $30.00 to $33.00 and gave the stock an “equal weight” rating in a report on Friday, February 20th. Finally, Oppenheimer reaffirmed an “outperform” rating on shares of RingCentral in a research note on Friday, February 20th. Four investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $35.63.

RingCentral Trading Down 5.7%

The stock has a 50 day moving average of $32.73 and a 200-day moving average of $30.21. The stock has a market capitalization of $3.06 billion, a P/E ratio of 73.70, a price-to-earnings-growth ratio of 1.48 and a beta of 1.14.

RingCentral (NYSE:RNG) last announced its quarterly earnings data on Thursday, February 19th. The software maker reported $1.18 EPS for the quarter, beating the consensus estimate of $1.14 by $0.04. RingCentral had a negative return on equity of 28.14% and a net margin of 1.73%.The company had revenue of $644.03 million for the quarter, compared to the consensus estimate of $643.52 million. During the same quarter in the prior year, the company posted $0.98 EPS. RingCentral’s quarterly 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. Research analysts anticipate that RingCentral, Inc. will post 1.29 EPS for the current year.

RingCentral Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 9th were issued a $0.075 dividend. The ex-dividend date was Monday, March 9th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.8%. RingCentral’s dividend payout ratio is presently 62.50%.

Insider Activity at RingCentral

In other RingCentral news, CFO Vaibhav Agarwal sold 18,680 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $36.33, for a total value of $678,644.40. Following the transaction, the chief financial officer directly owned 139,493 shares in the company, valued at $5,067,780.69. This represents a 11.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Vladimir Shmunis sold 95,831 shares of the firm’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $35.59, for a total transaction of $3,410,625.29. Following the transaction, the chief executive officer directly owned 126,685 shares in the company, valued at approximately $4,508,719.15. This trade represents a 43.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 253,031 shares of company stock worth $9,035,345. 7.30% of the stock is currently owned by corporate insiders.

Institutional Trading of RingCentral

Large investors have recently modified their holdings 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 valued at $26,000 after purchasing an additional 447 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of RingCentral by 269.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker’s stock worth $29,000 after buying an additional 738 shares in the last quarter. Rockefeller Capital Management L.P. increased its stake in shares of RingCentral by 70.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker’s stock valued at $30,000 after buying an additional 424 shares during the period. Harvest Fund Management Co. Ltd purchased a new position in shares of RingCentral during the third quarter valued at $30,000. Finally, Jones Financial Companies Lllp raised its holdings in shares of RingCentral by 61.6% in the third quarter. Jones Financial Companies Lllp now owns 1,217 shares of the software maker’s stock valued at $37,000 after acquiring an additional 464 shares in the last quarter. Hedge funds and other 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.