RingCentral (NYSE:RNG) Hits New 12-Month High – Time to Buy?

RingCentral, Inc. (NYSE:RNG) hit a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $82.14 and last traded at $81.1150, with a volume of 177,881 shares changing hands. The stock had previously closed at $79.19.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Royal Bank Of Canada started coverage on shares of RingCentral in a report on Thursday, September 3rd. They issued an “outperform” rating and a $85.00 price target on the stock. Mizuho increased their price target on shares of RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Needham & Company LLC lifted their price objective on RingCentral from $55.00 to $85.00 and gave the company a “buy” rating in a research note on Friday, August 28th. Oppenheimer boosted their target price on shares of RingCentral from $50.00 to $85.00 and gave the company an “outperform” rating in a research note on Tuesday, September 1st. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $50.00 price target on shares of RingCentral in a research report on Friday, July 24th. Five equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $56.00.

RingCentral Price Performance

The company’s 50 day moving average price is $72.64 and its two-hundred day moving average price is $53.12. The stock has a market capitalization of $6.81 billion, a PE ratio of 65.20, a P/E/G ratio of 1.31 and a beta of 1.10.

RingCentral (NYSE:RNG) last posted its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.06. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. The firm had revenue of $657.01 million for the quarter, compared to analyst estimates of $650.53 million. During the same period in the previous year, the business posted $1.06 earnings per share. RingCentral’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. Analysts forecast that RingCentral, Inc. will post 2.89 earnings per share for the current year.

RingCentral Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Thursday, August 6th were given a dividend of $0.1250 per share. The ex-dividend date was Thursday, August 6th. This is an increase from RingCentral’s previous quarterly dividend of $0.0750. This represents a $0.50 annualized dividend and a yield of 0.6%. RingCentral’s dividend payout ratio (DPR) is 40.00%.

Insider Activity

In related news, COO Kira Makagon sold 36,185 shares of the business’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $70.11, for a total value of $2,536,930.35. Following the sale, the chief operating officer directly owned 245,385 shares in the company, valued at approximately $17,203,942.35. The trade was a 12.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Agarwal sold 7,046 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $72.10, for a total transaction of $508,016.60. Following the completion of the sale, the chief financial officer directly owned 146,700 shares in the company, valued at $10,577,070. This trade represents a 4.58% 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 quarter, insiders have sold 84,625 shares of company stock worth $6,024,953. 7.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On RingCentral

Institutional investors and hedge funds have recently modified their holdings of the company. Quantinno Capital Management LP raised its position in RingCentral by 150.4% in 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. Dimensional Fund Advisors LP raised its stake in RingCentral by 8.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,308,949 shares of the software maker’s stock valued at $48,676,000 after buying an additional 101,002 shares in the last quarter. Bank of New York Mellon Corp raised its position in shares of RingCentral by 28.6% during the 1st quarter. Bank of New York Mellon Corp now owns 585,789 shares of the software maker’s stock worth $21,785,000 after acquiring an additional 130,418 shares in the last quarter. Principal Financial Group Inc. purchased a new stake in shares of RingCentral during the 1st quarter worth approximately $13,719,000. Finally, Hillsdale Investment Management Inc. lifted its position in RingCentral by 0.3% in the first quarter. Hillsdale Investment Management Inc. now owns 294,050 shares of the software maker’s stock valued at $10,936,000 after acquiring an additional 800 shares during the last quarter. Hedge funds and other institutional investors own 98.61% of the company’s stock.

About RingCentral

RingCentral, Inc is a provider of cloud-based business communications and collaboration solutions. Its platform enables organizations to manage business phone services, team messaging, video meetings, contact center operations and other communications through internet-based applications rather than traditional on-premises systems.

The company’s offerings include RingEX, a unified communications platform that combines voice, messaging and video; RingCentral Video for online meetings and collaboration; and RingCX, a cloud contact center solution.