RingCentral (NYSE:RNG) Hits New 52-Week High – Still a Buy?

Shares of RingCentral, Inc. (NYSE:RNG) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $64.95 and last traded at $64.4840, with a volume of 592230 shares trading hands. The stock had previously closed at $63.01.

Analyst Ratings Changes

A number of research analysts have recently issued reports on RNG shares. Morgan Stanley lifted their target price on shares of RingCentral from $33.00 to $40.00 and gave the company an “equal weight” rating in a research note on Monday, May 11th. Mizuho increased their price target on RingCentral from $38.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. Rosenblatt Securities reaffirmed a “buy” rating and set a $50.00 price target on shares of RingCentral in a report on Friday, July 24th. Oppenheimer reiterated an “outperform” rating and issued a $50.00 price objective on shares of RingCentral in a research report on Friday, May 8th. Finally, Piper Sandler boosted their price objective on RingCentral from $40.00 to $43.00 and gave the stock a “neutral” rating in a research note on Friday, July 24th. Three research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $44.40.

RingCentral Price Performance

The stock’s 50 day simple moving average is $43.52 and its two-hundred day simple moving average is $38.95. The company has a market capitalization of $5.40 billion, a P/E ratio of 51.74, a P/E/G ratio of 1.09 and a beta of 1.10.

RingCentral (NYSE:RNG) last released its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.22 EPS for the quarter, beating the consensus estimate of $1.16 by $0.06. The business had revenue of $657.01 million for the quarter, compared to analysts’ expectations of $650.53 million. RingCentral had a net margin of 4.27% and a negative return on equity of 34.49%. RingCentral’s revenue was up 5.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.06 earnings per share. RingCentral has set its FY 2026 guidance at 4.960-5.100 EPS and its Q3 2026 guidance at 1.250-1.300 EPS. As a group, equities research analysts expect that RingCentral, Inc. will post 2.88 earnings per share for the current year.

RingCentral Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be paid a $0.125 dividend. This is an increase from RingCentral’s previous quarterly dividend of $0.07. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $0.50 annualized dividend and a dividend yield of 0.8%. RingCentral’s payout ratio is 40.00%.

Insider Activity at RingCentral

In related news, Director Robert I. Theis sold 2,530 shares of RingCentral stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $40.28, for a total value of $101,908.40. Following the completion of the sale, the director directly owned 30,834 shares in the company, valued at $1,241,993.52. This trade represents a 7.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy Guggenheim Shenkan sold 1,265 shares of the business’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $40.59, for a total value of $51,346.35. Following the sale, the director directly owned 29,372 shares of the company’s stock, valued at $1,192,209.48. This represents a 4.13% 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. Insiders have sold a total of 38,628 shares of company stock valued at $1,656,201 over the last quarter. 7.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of RNG. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new position in RingCentral during the first quarter worth approximately $697,000. Robertson Stephens Wealth Management LLC lifted its position in shares of RingCentral by 124.7% in the fourth quarter. Robertson Stephens Wealth Management LLC now owns 90,311 shares of the software maker’s stock valued at $2,608,000 after buying an additional 50,122 shares during the last quarter. LSV Asset Management lifted its position in shares of RingCentral by 142.4% in the fourth quarter. LSV Asset Management now owns 2,871,700 shares of the software maker’s stock valued at $82,935,000 after buying an additional 1,686,900 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. boosted its stake in shares of RingCentral by 60.0% during the 4th quarter. Harel Insurance Investments & Financial Services Ltd. now owns 280,323 shares of the software maker’s stock worth $8,096,000 after acquiring an additional 105,145 shares during the period. Finally, Jupiter Asset Management Ltd. increased its holdings in shares of RingCentral by 11.4% during the 4th quarter. Jupiter Asset Management Ltd. now owns 1,456,270 shares of the software maker’s stock worth $42,057,000 after acquiring an additional 149,532 shares during the last quarter. Institutional investors own 98.61% of the company’s stock.

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.