RingCentral (NYSE:RNG) Rating Increased to Moderate Buy at Royal Bank Of Canada

RingCentral (NYSE:RNG) was upgraded by stock analysts at Royal Bank Of Canada to a “moderate buy” rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other analysts have also recently commented on the stock. Mizuho lifted their target price on shares of RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a research note on Friday, July 24th. Morgan Stanley raised their price target on shares of RingCentral from $33.00 to $40.00 and gave the stock an “equal weight” rating in a report on Monday, May 11th. Needham & Company LLC lifted their price objective on shares of RingCentral from $55.00 to $85.00 and gave the stock a “buy” rating in a research note on Friday, August 28th. Robert W. Baird set a $45.00 price objective on shares of RingCentral in a report on Friday, May 8th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of RingCentral in a research report on Friday, July 17th. Four equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, RingCentral currently has an average rating of “Hold” and a consensus target price of $56.00.

RingCentral Price Performance

Shares of NYSE:RNG opened at $76.40 on Thursday. The business’s 50-day moving average is $54.16 and its 200 day moving average is $44.33. RingCentral has a 1 year low of $24.14 and a 1 year high of $77.95. The firm has a market capitalization of $6.38 billion, a P/E ratio of 61.12, a P/E/G ratio of 1.25 and a beta of 1.14.

RingCentral (NYSE:RNG) last issued its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.06. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The business had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. During the same quarter last year, the company earned $1.06 earnings per share. The company’s quarterly revenue was up 5.9% on a year-over-year basis. 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, analysts expect that RingCentral will post 2.89 EPS for the current year.

Insider Buying and Selling at RingCentral

In related news, CAO Tarun Arora sold 954 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $77.00, for a total transaction of $73,458.00. Following the completion of the transaction, the chief accounting officer owned 69,864 shares of the company’s stock, valued at $5,379,528. This trade represents a 1.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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. Also, CEO Vladimir Shmunis sold 11,165 shares of the company’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $76.58, for a total transaction of $855,015.70. Following the completion of the sale, the chief executive officer directly owned 179,106 shares in the company, valued at approximately $13,715,937.48. The trade was a 5.87% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 46,799 shares of company stock worth $3,248,018. Corporate insiders own 7.30% of the company’s stock.

Hedge Funds Weigh In On RingCentral

Several institutional investors and hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System boosted its stake in shares of RingCentral by 3,720.4% in the second quarter. California State Teachers Retirement System now owns 3,166,501 shares of the software maker’s stock worth $123,430,000 after buying an additional 3,083,616 shares during the last quarter. Alyeska Investment Group L.P. purchased a new stake in RingCentral in the 3rd quarter worth approximately $53,365,000. LSV Asset Management grew its stake in shares of RingCentral by 142.4% during the 4th quarter. LSV Asset Management now owns 2,871,700 shares of the software maker’s stock worth $82,935,000 after purchasing an additional 1,686,900 shares during the period. Quantinno Capital Management LP increased its holdings in shares of RingCentral by 150.4% during the 1st quarter. Quantinno Capital Management LP now owns 1,976,995 shares of the software maker’s stock valued at $73,524,000 after purchasing an additional 1,187,437 shares in the last quarter. Finally, AQR Capital Management LLC lifted its stake in shares of RingCentral by 35.4% in the 4th quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker’s stock valued at $57,874,000 after purchasing an additional 523,966 shares during the period. Institutional investors and hedge funds own 98.61% of the company’s stock.

Key Headlines Impacting RingCentral

Here are the key news stories impacting RingCentral this week:

• Positive Sentiment: RBC Capital Markets began coverage of RingCentral with an Outperform rating, providing a new bullish catalyst for the stock. RingCentral Jumps 5.7% After RBC Capital Initiates at Outperform
• Positive Sentiment: RBC said RingCentral appears less susceptible to AI displacement risks than the market currently assumes, suggesting the company’s communications software and enterprise customer relationships may remain defensible as AI adoption accelerates. RingCentral Less Susceptible to AI Displacement Risks than Market Fears, RBC Says
• Positive Sentiment: The stock reached a new 52-week high, indicating strong recent momentum and investor follow-through after the bullish analyst coverage. RingCentral Hits New 52-Week High
• Neutral Sentiment: CEO Vladimir Shmunis, CFO Vaibhav Agarwal and Chief Accounting Officer Tarun Arora reported stock sales totaling approximately $2.55 million. Each transaction was conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding tied to vested equity awards, reducing the likelihood that the sales reflect negative views of RingCentral’s outlook.

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.