RingCentral (NYSE:RNG) Stock Price Expected to Rise, Morgan Stanley Analyst Says

RingCentral (NYSE:RNG) had its price target lifted by equities researchers at Morgan Stanley from $33.00 to $40.00 in a research note issued to investors on Monday,MarketScreener reports. The firm currently has an “equal weight” rating on the software maker’s stock. Morgan Stanley’s price objective would indicate a potential downside of 13.89% from the company’s previous close.

Other analysts also recently issued research reports about the company. Oppenheimer reaffirmed an “outperform” rating and issued a $50.00 target price on shares of RingCentral in a research report on Friday. Robert W. Baird set a $45.00 price target on RingCentral in a research report on Friday. UBS Group set a $38.00 price objective on RingCentral in a report on Friday, February 20th. Rosenblatt Securities upped their price target on shares of RingCentral from $45.00 to $50.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Mizuho lifted their price objective on shares of RingCentral from $27.00 to $32.00 and gave the stock a “neutral” rating in a research note on Friday, February 20th. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $43.00.

RingCentral Stock Up 1.8%

RingCentral stock opened at $46.45 on Monday. RingCentral has a 12-month low of $23.59 and a 12-month high of $48.57. The stock has a market cap of $3.91 billion, a price-to-earnings ratio of 49.87, a P/E/G ratio of 1.75 and a beta of 1.13. The business’s 50-day simple moving average is $38.76 and its 200 day simple moving average is $32.17.

RingCentral (NYSE:RNG) last posted its quarterly earnings results on Thursday, May 7th. The software maker reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. The business had revenue of $644.20 million during the quarter, compared to the consensus estimate of $642.73 million. RingCentral had a net margin of 3.31% and a negative return on equity of 34.90%. RingCentral’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.00 earnings per share. RingCentral has set its FY 2026 guidance at 4.850-5.010 EPS and its Q2 2026 guidance at 1.150-1.170 EPS. As a group, sell-side analysts expect that RingCentral will post 2.68 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Vladimir Shmunis sold 95,831 shares of the firm’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $35.59, for a total transaction of $3,410,625.29. Following the completion of the sale, the chief executive officer owned 126,685 shares of the company’s stock, valued at $4,508,719.15. This trade represents a 43.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Kira Makagon sold 5,870 shares of the company’s stock in a transaction on Monday, April 27th. The shares were sold at an average price of $40.27, for a total value of $236,384.90. Following the completion of the transaction, the chief operating officer owned 236,715 shares of the company’s stock, valued at $9,532,513.05. This trade represents a 2.42% decrease in their position. 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 259,854 shares of company stock worth $9,312,708 in the last quarter. 7.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in RingCentral by 1.1% in the third quarter. Vanguard Group Inc. now owns 11,823,636 shares of the software maker’s stock valued at $335,082,000 after purchasing an additional 129,444 shares during the last quarter. Capital World Investors raised its position in shares of RingCentral by 20.9% during the 3rd quarter. Capital World Investors now owns 11,735,991 shares of the software maker’s stock valued at $332,598,000 after buying an additional 2,031,861 shares in the last quarter. LSV Asset Management lifted its stake in RingCentral by 142.4% during the fourth quarter. LSV Asset Management now owns 2,871,700 shares of the software maker’s stock worth $82,935,000 after purchasing an additional 1,686,900 shares during the last quarter. AQR Capital Management LLC lifted its stake in RingCentral by 35.4% in the fourth quarter. AQR Capital Management LLC now owns 2,003,950 shares of the software maker’s stock worth $57,874,000 after purchasing an additional 523,966 shares during the last quarter. Finally, Alyeska Investment Group L.P. bought a new position in shares of RingCentral during the third quarter valued at about $53,365,000. 98.61% of the stock is owned by institutional investors.

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.