Traders Purchase Large Volume of Call Options on Ringcentral (NYSE:RNG)

Ringcentral, Inc. (NYSE:RNG) was the target of unusually large options trading activity on Friday. Stock investors bought 2,473 call options on the stock. This represents an increase of 206% compared to the typical volume of 809 call options.

More Ringcentral News

Here are the key news stories impacting Ringcentral this week:

• Positive Sentiment: Q4 EPS beat and revenue roughly in line — RingCentral reported $1.18 EPS vs. $1.14 consensus and revenue of $644M (about in line), showing sequential improvement and driving near‑term bullishness. Read More.
• Positive Sentiment: Big guidance raise: Q1 and FY2026 EPS guidance well above Street — management set Q1 EPS of $1.16–$1.19 and FY EPS of $4.76–$4.97, materially above consensus, which is the main driver of today’s upside. Read More.
• Positive Sentiment: AI tailwinds and targets for subscription growth and FCF — management is targeting 4.5%–5.5% subscription revenue growth and ~$$590M of free cash flow in 2026, pointing to improved profitability leverage from AI product momentum. Read More.
• Positive Sentiment: Shareholder return move: quarterly dividend declared — RingCentral declared a $0.075 quarterly dividend (ex‑dividend March 9, payable March 16), adding to investor yield and signaling confidence in cash generation.
• Positive Sentiment: S&P index inclusion — the company’s addition to S&P indices can increase passive fund demand and improve liquidity, a supportive technical for the stock. Read More.
• Neutral Sentiment: Revenue growth remains modest — revenue was up ~4.8% year‑over‑year, which is progress but not standout growth for a software name; investors will watch whether AI initiatives accelerate top‑line trajectory. Read More.
• Negative Sentiment: Profitability and valuation concerns persist — RingCentral still shows a negative return on equity (~-22%) and slim net margins, while the stock trades at a high P/E (~210x), leaving it vulnerable if execution on guidance or FCF targets slips.

Wall Street Analysts Forecast Growth

RNG has been the topic of a number of analyst reports. Rosenblatt Securities boosted their price target on Ringcentral from $32.00 to $37.50 and gave the stock a “buy” rating in a research report on Friday. Mizuho set a $32.00 price objective on Ringcentral in a research note on Friday. Needham & Company LLC reissued a “buy” rating and issued a $36.00 target price on shares of Ringcentral in a report on Tuesday, November 4th. Morgan Stanley reduced their price target on Ringcentral from $31.00 to $30.00 and set an “equal weight” rating for the company in a report on Thursday, January 15th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Ringcentral in a research report on Monday, December 29th. Four analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $32.27.

Insider Transactions at Ringcentral

In other Ringcentral news, COO Kira Makagon sold 6,495 shares of the firm’s stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $29.22, for a total value of $189,783.90. Following the completion of the sale, the chief operating officer directly owned 336,162 shares in the company, valued at $9,822,653.64. This trade represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Vladimir Shmunis sold 27,018 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $27.68, for a total value of $747,858.24. Following the transaction, the chief executive officer owned 262,240 shares in the company, valued at $7,258,803.20. This trade represents a 9.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 53,141 shares of company stock valued at $1,491,632. Company insiders own 7.30% of the company’s stock.

Hedge Funds Weigh In On Ringcentral

Several hedge funds and other institutional investors have recently modified their holdings of RNG. Fort Washington Investment Advisors Inc. OH grew its position in Ringcentral by 22.9% during the third quarter. Fort Washington Investment Advisors Inc. OH now owns 1,224,090 shares of the software maker’s stock valued at $34,691,000 after buying an additional 228,202 shares during the period. Y Intercept Hong Kong Ltd bought a new stake in Ringcentral during the second quarter valued at about $404,000. Russell Investments Group Ltd. lifted its holdings in Ringcentral by 79.4% in the 2nd quarter. Russell Investments Group Ltd. now owns 340,188 shares of the software maker’s stock worth $9,610,000 after purchasing an additional 150,537 shares in the last quarter. Vise Technologies Inc. bought a new position in shares of Ringcentral during the second quarter worth $430,000. Finally, Oak Harvest Investment Services bought a new position in shares of Ringcentral during the 3rd quarter valued at about $1,873,000. 98.61% of the stock is owned by institutional investors.

Ringcentral Price Performance

Shares of Ringcentral stock traded up $11.10 during trading on Friday, hitting $40.49. 4,547,626 shares of the company’s stock traded hands, compared to its average volume of 2,354,168. Ringcentral has a 1 year low of $20.58 and a 1 year high of $40.39. The business has a 50-day simple moving average of $28.21 and a 200-day simple moving average of $28.76. The stock has a market capitalization of $3.50 billion, a P/E ratio of 288.92, a PEG ratio of 1.22 and a beta of 1.23.

Ringcentral (NYSE:RNG) last posted its earnings results on Thursday, February 19th. The software maker reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.04. The business had revenue of $644.03 million for the quarter, compared to analysts’ expectations of $643.52 million. Ringcentral had a net margin of 0.53% and a negative return on equity of 22.38%. The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.98 EPS. 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, equities analysts predict that Ringcentral will post 1.29 earnings per share for the current fiscal year.

Ringcentral Dividend Announcement

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

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.