RingCentral (NYSE:RNG) Price Target Raised to $40.00

RingCentral (NYSE:RNG) had its price objective boosted by Mizuho from $38.00 to $40.00 in a report released on Friday,Benzinga reports. The brokerage currently has a neutral rating on the software maker’s stock.

A number of other research analysts have also recently issued reports on the stock. Piper Sandler lifted their price objective on shares of RingCentral from $40.00 to $43.00 and gave the company a “neutral” rating in a research note on Friday. Needham & Company LLC restated a “buy” rating on shares of RingCentral in a research note on Monday, July 20th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $40.00 target price on shares of RingCentral in a report on Saturday, May 9th. Wells Fargo & Company lifted their price target on RingCentral from $32.00 to $43.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $50.00 price target on shares of RingCentral in a report on Friday. Three equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $44.40.

RingCentral Stock Up 0.0%

Shares of RingCentral stock opened at $48.33 on Friday. RingCentral has a 12-month low of $23.59 and a 12-month high of $50.14. The company has a market capitalization of $4.05 billion, a price-to-earnings ratio of 38.66, a PEG ratio of 1.42 and a beta of 1.14. The firm’s 50-day moving average price is $40.41 and its two-hundred day moving average price is $36.84.

RingCentral (NYSE:RNG) last issued its earnings results on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, beating the consensus estimate of $1.16 by $0.06. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. The company had revenue of $657.01 million during the quarter, compared to analysts’ expectations of $650.53 million. During the same period in the previous year, the company earned $1.06 EPS. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. On average, sell-side analysts expect that RingCentral will post 2.78 earnings per share for the current year.

RingCentral Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be issued a dividend of $0.125 per share. 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 1.0%. RingCentral’s payout ratio is presently 24.00%.

Insider Buying and Selling at RingCentral

In other RingCentral news, Director Robert I. Theis sold 2,530 shares of the firm’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 sale, the director owned 30,834 shares in the company, valued at $1,241,993.52. This trade represents a 7.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Tarun Arora sold 3,615 shares of the business’s 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 directly owned 68,100 shares in the company, valued at approximately $2,928,300. The trade was a 5.04% decrease in their position. The SEC filing for this sale provides additional information. 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 sold 38,628 shares of company stock worth $1,656,201 over the last 90 days. 7.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. WealthCollab LLC boosted its holdings in shares of 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 acquiring an additional 259 shares in the last quarter. Meeder Asset Management Inc. grew its position in RingCentral by 127.3% during the 1st quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker’s stock worth $27,000 after acquiring an additional 410 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in RingCentral by 269.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker’s stock worth $29,000 after purchasing an additional 738 shares in the last quarter. Rockefeller Capital Management L.P. increased its holdings in RingCentral by 70.5% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker’s stock worth $30,000 after purchasing an additional 424 shares in the last quarter. Finally, Harvest Fund Management Co. Ltd bought a new position in RingCentral in the third quarter valued at about $30,000. 98.61% of the stock is currently owned by institutional investors.

More RingCentral News

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 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.