RingCentral (NYSE:RNG) Shares Down 4.4% – Here’s Why

RingCentral, Inc. (NYSE:RNG) was down 4.4% during mid-day trading on Friday . The stock traded as low as $64.53 and last traded at $64.8080. 99,337 shares changed hands during trading, a decline of 95% from the average session volume of 2,124,397 shares. The stock had previously closed at $67.78.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on RNG. Mizuho lifted their price objective on RingCentral from $38.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, July 24th. Wells Fargo & Company boosted their target price on RingCentral from $32.00 to $43.00 and gave the stock an “equal weight” rating in a research report on Friday, May 8th. Needham & Company LLC reissued a “buy” rating on shares of RingCentral in a research note on Monday, July 20th. Piper Sandler raised their price target on RingCentral from $40.00 to $43.00 and gave the company a “neutral” rating in a report on Friday, July 24th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $50.00 price target on shares of RingCentral in a research note on Friday, July 24th. Three analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, RingCentral currently has a consensus rating of “Hold” and an average target price of $44.40.

RingCentral Stock Down 4.1%

The firm’s fifty day simple moving average is $45.02 and its 200-day simple moving average is $40.02. The company has a market cap of $5.43 billion, a PE ratio of 51.89, a P/E/G ratio of 1.09 and a beta of 1.10.

RingCentral (NYSE:RNG) last issued its quarterly earnings data 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 business had revenue of $657.01 million during the quarter, compared to analysts’ expectations of $650.53 million. During the same period last year, the company posted $1.06 EPS. The company’s 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 predict that RingCentral, Inc. will post 2.88 earnings per share for the current year.

RingCentral Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders 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 is Thursday, August 6th. This represents a $0.50 dividend on an annualized basis and a yield of 0.8%. RingCentral’s payout ratio is currently 40.00%.

Insider Activity at RingCentral

In other news, CAO Tarun Arora sold 3,615 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $43.00, for a total value of $155,445.00. Following the sale, the chief accounting officer directly owned 68,100 shares in the company, valued at $2,928,300. This represents a 5.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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, CFO Vaibhav Agarwal sold 7,047 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $46.17, for a total value of $325,359.99. Following the sale, the chief financial officer directly owned 169,282 shares in the company, valued at approximately $7,815,749.94. The trade was a 4.00% decrease in their position. 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 a total of 38,628 shares of company stock valued at $1,656,201 in the last ninety days. 7.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RNG. Globeflex Capital L P purchased a new position in RingCentral in the 2nd quarter valued at about $4,474,000. Great Lakes Advisors LLC purchased a new stake in shares of RingCentral during the second quarter worth about $409,000. Foster & Motley Inc. purchased a new stake in shares of RingCentral during the second quarter worth about $394,000. Plato Investment Management Ltd acquired a new position in shares of RingCentral in the second quarter valued at approximately $117,000. Finally, Wedge Capital Management L L P NC raised its position in shares of RingCentral by 29.1% in the second quarter. Wedge Capital Management L L P NC now owns 108,784 shares of the software maker’s stock valued at $4,240,000 after buying an additional 24,508 shares during the last quarter. 98.61% of the stock is currently owned by hedge funds and other institutional investors.

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.