RingCentral (NYSE:RNG) Price Target Raised to $91.00

Key Points

• Morgan Stanley raised RingCentral’s price target from $41 to $91 while maintaining an “equal weight” rating, implying roughly 15% upside from the prior close.
• Analyst sentiment remains mixed: RingCentral has a consensus “Hold” rating and an average price target of $68.08, despite targets ranging as high as $91.
• RingCentral recently exceeded quarterly expectations, reporting $1.33 in adjusted earnings per share versus $1.28 expected and revenue of $676.04 million, up 5.8% year over year.

RingCentral (NYSE:RNG - Get Free Report) had its price objective boosted by stock analysts at Morgan Stanley from $41.00 to $91.00 in a report released on Friday, Benzinga reports. The firm currently has an "equal weight" rating on the software maker's stock. Morgan Stanley's price objective suggests a potential upside of 15.02% from the stock's previous close.

RNG has been the topic of several other reports. Evercore set a $90.00 price objective on shares of RingCentral in a report on Friday. Wells Fargo & Company boosted their target price on RingCentral from $43.00 to $65.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 25th. Rosenblatt Securities restated a "buy" rating and set a $50.00 price target on shares of RingCentral in a research note on Friday, July 24th. Jefferies Financial Group restated a "hold" rating and set a $75.00 price target on shares of RingCentral in a research report on Friday. Finally, Mizuho lifted their price objective on RingCentral from $38.00 to $40.00 and gave the company a "neutral" rating in a research note on Friday, July 24th. Five research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $68.08.

RingCentral Price Performance

• It's RingCentral NYSE: RNG You Want In Your 2021 Portfolio, Not Zoom NASDAQ: ZM

Shares of NYSE:RNG opened at $79.11 on Friday. The business's 50 day moving average price is $73.63 and its 200-day moving average price is $54.03. The firm has a market capitalization of $6.61 billion, a PE ratio of 63.29, a P/E/G ratio of 1.43 and a beta of 1.10. RingCentral has a 1 year low of $24.14 and a 1 year high of $83.71.

RingCentral (NYSE:RNG - Get Free Report) last released its quarterly earnings data on Thursday, October 22nd. The software maker reported $1.33 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.05. RingCentral had a negative return on equity of 34.49% and a net margin of 4.27%. The company had revenue of $676.04 million for the quarter, compared to analyst estimates of $667.30 million. During the same quarter in the previous year, the company posted $1.13 earnings per share. The firm's revenue for the quarter was up 5.8% compared to the same quarter last year. As a group, analysts expect that RingCentral will post 2.89 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Vaibhav Agarwal sold 7,046 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $72.10, for a total value of $508,016.60. Following the completion of the sale, the chief financial officer owned 146,700 shares in the company, valued at $10,577,070. This trade represents a 4.58% decrease in their ownership of the stock. The sale 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, CEO Vladimir Shmunis sold 11,165 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $76.58, for a total value of $855,015.70. Following the sale, the chief executive officer directly owned 179,106 shares in the company, valued at $13,715,937.48. This trade represents a 5.87% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 84,625 shares of company stock worth $6,024,953. 7.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On RingCentral

Hedge funds have recently modified their holdings of the company. Fortitude Family Office LLC grew its stake in RingCentral by 128.1% in the 3rd quarter. Fortitude Family Office LLC now owns 349 shares of the software maker's stock worth $26,000 after acquiring an additional 196 shares during the period. Elevation Wealth Partners LLC lifted its stake in shares of RingCentral by 119.3% during the 3rd quarter. Elevation Wealth Partners LLC now owns 546 shares of the software maker's stock worth $41,000 after purchasing an additional 297 shares during the period. WealthCollab LLC boosted its holdings in shares of RingCentral by 59.7% during the first quarter. WealthCollab LLC now owns 693 shares of the software maker's stock worth $26,000 after purchasing an additional 259 shares during the last quarter. Meeder Asset Management Inc. boosted its holdings in shares of RingCentral by 127.3% during the first quarter. Meeder Asset Management Inc. now owns 732 shares of the software maker's stock worth $27,000 after purchasing an additional 410 shares during the last quarter. Finally, Rockefeller Capital Management L.P. boosted its holdings in shares of RingCentral by 70.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,025 shares of the software maker's stock worth $30,000 after purchasing an additional 424 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 provider of cloud-based business communications and collaboration solutions. Its platform enables organizations to manage business phone services, team messaging, video meetings, contact center operations and other communications through internet-based applications rather than traditional on-premises systems.

The company's offerings include RingEX, a unified communications platform that combines voice, messaging and video; RingCentral Video for online meetings and collaboration; and RingCX, a cloud contact center solution.

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