RingCentral (NYSE:RNG) Shares Up 6% – Should You Buy?

Shares of RingCentral, Inc. (NYSE:RNG) were up 6% during trading on Friday . The stock traded as high as $42.18 and last traded at $42.07. Approximately 1,692,384 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 2,788,816 shares. The stock had previously closed at $39.67.

Wall Street Analysts Forecast Growth

RNG has been the subject of a number of recent research reports. Piper Sandler boosted their price objective on shares of RingCentral from $28.00 to $37.00 and gave the company a “neutral” rating in a report on Monday, February 23rd. Mizuho lifted their price objective on shares of RingCentral from $27.00 to $32.00 and gave the company a “neutral” rating in a research note on Friday, February 20th. Morgan Stanley upped their target price on RingCentral from $30.00 to $33.00 and gave the stock an “equal weight” rating in a research note on Friday, February 20th. Weiss Ratings upgraded RingCentral from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday. Finally, UBS Group set a $38.00 price objective on RingCentral in a research report on Friday, February 20th. Four analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $34.04.

RingCentral Trading Up 6.5%

The company has a market capitalization of $3.66 billion, a P/E ratio of 88.02, a PEG ratio of 1.54 and a beta of 1.14. The stock has a 50 day moving average price of $29.68 and a 200 day moving average price of $29.37.

RingCentral (NYSE:RNG) last issued its earnings results on Thursday, February 19th. The software maker reported $1.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.14 by $0.04. RingCentral had a negative return on equity of 28.14% and a net margin of 1.73%.The business had revenue of $644.03 million during the quarter, compared to analysts’ expectations of $643.52 million. During the same quarter in the prior year, the firm earned $0.98 EPS. The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. RingCentral has set its FY 2026 guidance at 4.760-4.970 EPS and its Q1 2026 guidance at 1.160-1.190 EPS. On average, research analysts predict that RingCentral, Inc. will post 1.29 EPS for the current year.

RingCentral Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 9th will be given a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, March 9th.

Insider Buying and Selling at RingCentral

In other RingCentral news, COO Kira Makagon sold 46,960 shares of RingCentral stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $35.49, for a total transaction of $1,666,610.40. Following the transaction, the chief operating officer directly owned 369,524 shares of the company’s stock, valued at approximately $13,114,406.76. The trade was a 11.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Vaibhav Agarwal sold 18,680 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $36.33, for a total value of $678,644.40. Following the completion of the sale, the chief financial officer owned 139,493 shares in the company, valued at $5,067,780.69. This trade represents a 11.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 250,686 shares of company stock worth $8,865,429 in the last three months. 7.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On RingCentral

A number of hedge funds and other institutional investors have recently made changes to their positions in RNG. Global Retirement Partners LLC increased its position in RingCentral by 98.5% during the 3rd quarter. Global Retirement Partners LLC now owns 901 shares of the software maker’s stock valued at $26,000 after purchasing an additional 447 shares during the period. EverSource Wealth Advisors LLC boosted its stake in shares of RingCentral by 269.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,012 shares of the software maker’s stock valued at $29,000 after purchasing an additional 738 shares during the last quarter. Harvest Fund Management Co. Ltd bought a new stake in shares of RingCentral in the 3rd quarter valued at $30,000. Jones Financial Companies Lllp increased its position in shares of RingCentral by 61.6% during the third quarter. Jones Financial Companies Lllp now owns 1,217 shares of the software maker’s stock worth $37,000 after buying an additional 464 shares during the period. Finally, Covestor Ltd raised its stake in RingCentral by 198.5% during the fourth quarter. Covestor Ltd now owns 1,594 shares of the software maker’s stock worth $46,000 after buying an additional 1,060 shares during the last quarter. 98.61% of the stock is owned by institutional investors and hedge funds.

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.