RingCentral (NYSE:RNG) Sets New 12-Month High – Should You Buy?

RingCentral, Inc. (NYSE:RNG)’s share price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $60.25 and last traded at $59.6870, with a volume of 289480 shares trading hands. The stock had previously closed at $57.30.

Analyst Ratings Changes

RNG has been the subject of a number of research reports. Piper Sandler raised their price target on shares of RingCentral from $40.00 to $43.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Mizuho increased their price objective on shares of RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. Wells Fargo & Company boosted their target price on RingCentral from $32.00 to $43.00 and gave the company an “equal weight” rating in a research report on Friday, May 8th. Oppenheimer reiterated an “outperform” rating and issued a $50.00 price target on shares of RingCentral in a report on Friday, May 8th. Finally, Needham & Company LLC restated a “buy” rating on shares of RingCentral in a report on Monday, July 20th. Three research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $44.40.

RingCentral Stock Performance

The company has a market cap of $5.12 billion, a price-to-earnings ratio of 49.06, a price-to-earnings-growth ratio of 1.05 and a beta of 1.10. The stock’s fifty day moving average is $42.74 and its two-hundred day moving average is $38.44.

RingCentral (NYSE:RNG) last released its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.16 by $0.06. The business had revenue of $657.01 million during the quarter, compared to the consensus estimate of $650.53 million. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%.The company’s quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.06 EPS. 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, equities research analysts expect that RingCentral, Inc. will post 2.88 EPS for the current year.

RingCentral Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th will be paid 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 annualized dividend and a yield of 0.8%. RingCentral’s dividend payout ratio (DPR) is 24.00%.

Insider Transactions at RingCentral

In related news, CAO Tarun Arora sold 3,615 shares of the firm’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $43.00, for a total transaction of $155,445.00. Following the transaction, the chief accounting officer directly owned 68,100 shares of the company’s stock, valued at $2,928,300. This trade represents a 5.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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, Director Amy Guggenheim Shenkan sold 1,265 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $40.59, for a total transaction of $51,346.35. Following the completion of the sale, 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 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. Over the last 90 days, insiders have sold 38,628 shares of company stock worth $1,656,201. 7.30% of the stock is owned by insiders.

Hedge Funds Weigh In On RingCentral

Several large investors have recently modified their holdings of the business. Empowered Funds LLC raised its holdings in RingCentral by 9.0% during the 1st quarter. Empowered Funds LLC now owns 11,417 shares of the software maker’s stock valued at $283,000 after acquiring an additional 940 shares during the period. Woodline Partners LP lifted its holdings in shares of RingCentral by 14.8% in the first quarter. Woodline Partners LP now owns 159,474 shares of the software maker’s stock worth $3,949,000 after buying an additional 20,518 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in RingCentral by 2.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 261,190 shares of the software maker’s stock valued at $6,467,000 after acquiring an additional 5,398 shares in the last quarter. Creative Planning purchased a new stake in RingCentral in the 2nd quarter worth approximately $274,000. Finally, Invesco Ltd. grew its position in shares of RingCentral by 10.8% during the 2nd quarter. Invesco Ltd. now owns 137,935 shares of the software maker’s stock valued at $3,910,000 after purchasing an additional 13,446 shares in 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.