RingCentral (NYSE:RNG) Given New $40.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised its price target on RingCentral from $33 to $40 while keeping an equal-weight rating. The new target still implies about 13.9% downside from the stock’s current price.
• Other analysts remain mixed, with Needham boosting its target to $55 and rating the stock a buy, while the overall analyst consensus remains Hold with an average price target of $43.
• RingCentral beat quarterly estimates, reporting EPS of $1.20 versus $1.17 expected and revenue of $644.2 million, up 5.3% year over year. The company also issued FY2026 and Q2 2026 guidance above current consensus estimates.

RingCentral (NYSE:RNG - Get Free Report) had its price objective hoisted by stock analysts at Morgan Stanley from $33.00 to $40.00 in a 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 target points to a potential downside of 13.89% from the stock's current price.

Several other equities analysts also recently weighed in on the stock. Needham & Company LLC raised their target price on shares of RingCentral from $36.00 to $55.00 and gave the company a "buy" rating in a report on Friday, March 13th. Piper Sandler increased their price target on shares of RingCentral from $28.00 to $37.00 and gave the company a "neutral" rating in a research report on Monday, February 23rd. Zacks Research upgraded RingCentral from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. UBS Group set a $38.00 price target on RingCentral in a research report on Friday, February 20th. Finally, Robert W. Baird set a $45.00 price objective on RingCentral in a research note on Friday. Three research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $43.00.

RingCentral Stock Up 1.8%

Shares of RingCentral stock opened at $46.45 on Monday. RingCentral has a 52 week low of $23.59 and a 52 week high of $48.57. The firm has a market capitalization of $3.91 billion, a P/E ratio of 49.87, a P/E/G ratio of 1.75 and a beta of 1.13. The firm's 50 day moving average is $38.76 and its two-hundred day moving average is $32.17.

RingCentral (NYSE:RNG - Get Free Report) last posted its earnings results on Thursday, May 7th. The software maker reported $1.20 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. RingCentral had a negative return on equity of 34.90% and a net margin of 3.31%.The business had revenue of $644.20 million for the quarter, compared to analysts' expectations of $642.73 million. During the same quarter in the previous year, the firm earned $1.00 earnings per share. The business's revenue was up 5.3% compared to the same quarter last year. 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, research analysts expect that RingCentral will post 2.68 earnings per share for the current fiscal year.

Insider Buying and Selling at RingCentral

In other RingCentral news, CAO Tarun Arora sold 8,840 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $40.69, for a total transaction of $359,699.60. Following the completion of the sale, the chief accounting officer owned 75,492 shares in the company, valued at $3,071,769.48. The trade was a 10.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Vaibhav Agarwal sold 18,680 shares of the firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $36.33, for a total transaction of $678,644.40. Following the completion of the transaction, the chief financial officer owned 139,493 shares in the company, valued at approximately $5,067,780.69. The trade was a 11.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 259,854 shares of company stock worth $9,312,708. Company insiders own 7.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RNG. Empowered Funds LLC grew its holdings in shares of RingCentral by 9.0% in the 1st quarter. Empowered Funds LLC now owns 11,417 shares of the software maker's stock worth $283,000 after acquiring an additional 940 shares during the last quarter. Woodline Partners LP grew its stake in shares of RingCentral by 14.8% in the 1st quarter. Woodline Partners LP now owns 159,474 shares of the software maker's stock valued at $3,949,000 after buying an additional 20,518 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of RingCentral by 2.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 261,190 shares of the software maker's stock worth $6,467,000 after acquiring an additional 5,398 shares in the last quarter. Creative Planning acquired a new stake in RingCentral in the 2nd quarter worth approximately $274,000. Finally, Invesco Ltd. boosted its holdings in shares of RingCentral by 10.8% during the 2nd quarter. Invesco Ltd. now owns 137,935 shares of the software maker's stock worth $3,910,000 after buying an additional 13,446 shares during the period. Institutional investors own 98.61% of the company's stock.

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.

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