RingCentral (NYSE:RNG) Trading 7.6% Higher – Here’s What Happened

RingCentral, Inc. (NYSE:RNG)’s share price traded up 7.6% on Tuesday . The company traded as high as $42.26 and last traded at $42.2050. Approximately 390,445 shares were traded during trading, a decline of 81% from the average daily volume of 2,080,481 shares. The stock had previously closed at $39.24.

Analyst Upgrades and Downgrades

Several analysts have issued reports on RNG shares. Jefferies Financial Group reaffirmed a “hold” rating and set a $40.00 target price on shares of RingCentral in a research report on Saturday, May 9th. 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. Needham & Company LLC upped their price objective on RingCentral from $36.00 to $55.00 and gave the stock a “buy” rating in a research note on Friday, March 13th. Robert W. Baird set a $45.00 price objective on RingCentral in a research report on Friday, May 8th. Finally, Rosenblatt Securities lifted their target price on RingCentral from $45.00 to $50.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, RingCentral presently has an average rating of “Hold” and a consensus price target of $43.00.

RingCentral Stock Performance

The company has a 50 day moving average of $40.72 and a two-hundred day moving average of $35.81. The stock has a market capitalization of $3.31 billion, a PE ratio of 41.93, a P/E/G ratio of 1.20 and a beta of 1.14.

RingCentral (NYSE:RNG) last released its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 EPS for the quarter, beating analysts’ consensus estimates of $1.17 by $0.03. RingCentral had a negative return on equity of 33.75% and a net margin of 3.31%.The company had revenue of $644.20 million during the quarter, compared to analysts’ expectations of $642.73 million. During the same period last year, the business posted $1.00 earnings per share. The firm’s revenue was up 5.3% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.850-5.010 EPS and its Q2 2026 guidance at 1.150-1.170 EPS. As a group, research analysts predict that RingCentral, Inc. will post 2.78 EPS for the current fiscal year.

RingCentral Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Tuesday, June 2nd were paid a $0.075 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $0.30 dividend on an annualized basis and a yield of 0.8%. RingCentral’s dividend payout ratio (DPR) is 31.91%.

Insider Activity at RingCentral

In other RingCentral news, Director Amy Guggenheim Shenkan sold 1,265 shares of the firm’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $40.59, for a total value of $51,346.35. Following the completion of the transaction, the director owned 29,372 shares of the company’s stock, valued at approximately $1,192,209.48. This trade represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 RingCentral stock in a transaction on Friday, May 29th. The stock was sold at an average price of $43.00, for a total transaction of $155,445.00. Following the sale, the chief accounting officer owned 68,100 shares of the company’s stock, valued at $2,928,300. The trade was a 5.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold 45,451 shares of company stock worth $1,933,565 in the last 90 days. 7.30% of the stock is owned by insiders.

Hedge Funds Weigh In On RingCentral

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RNG. WealthCollab LLC grew its stake in RingCentral by 59.7% during the 1st quarter. WealthCollab LLC now owns 693 shares of the software maker’s stock valued at $26,000 after purchasing an additional 259 shares during the last quarter. Versant Capital Management Inc raised its stake in shares of RingCentral by 2.3% in the second quarter. Versant Capital Management Inc now owns 11,521 shares of the software maker’s stock worth $449,000 after purchasing an additional 259 shares during the last quarter. Pictet Asset Management Holding SA lifted its holdings in shares of RingCentral by 3.1% during the first quarter. Pictet Asset Management Holding SA now owns 11,883 shares of the software maker’s stock worth $442,000 after purchasing an additional 362 shares during the period. Rothschild Investment LLC lifted its holdings in shares of RingCentral by 15.8% during the fourth quarter. Rothschild Investment LLC now owns 2,681 shares of the software maker’s stock worth $77,000 after purchasing an additional 366 shares during the period. Finally, Sovereign Financial Group Inc. boosted its position in RingCentral by 4.2% in the first quarter. Sovereign Financial Group Inc. now owns 10,170 shares of the software maker’s stock valued at $378,000 after buying an additional 409 shares during the last quarter. Hedge funds and other institutional investors own 98.61% of the company’s stock.

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.