Morgan Stanley Has Lowered Expectations for RingCentral (NYSE:RNG) Stock Price

RingCentral (NYSE:RNG) had its price target lowered by equities research analysts at Morgan Stanley from $40.00 to $29.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has an “equal weight” rating on the software maker’s stock. Morgan Stanley’s price target points to a potential upside of 28.95% from the stock’s previous close.

Several other research analysts also recently issued reports on RNG. Wells Fargo & Company restated an “underweight” rating and set a $30.00 price objective (down previously from $38.00) on shares of RingCentral in a report on Tuesday, January 7th. StockNews.com downgraded RingCentral from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, April 1st. UBS Group lowered their price objective on RingCentral from $40.00 to $38.00 and set a “neutral” rating on the stock in a research report on Friday, February 21st. Raymond James reduced their target price on RingCentral from $45.00 to $40.00 and set an “outperform” rating for the company in a research report on Friday, February 21st. Finally, Needham & Company LLC lowered their price target on shares of RingCentral from $42.00 to $36.00 and set a “buy” rating on the stock in a report on Friday, February 21st. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $36.00.

RingCentral Price Performance

RNG traded down $0.08 on Wednesday, hitting $22.49. The company had a trading volume of 543,381 shares, compared to its average volume of 1,553,067. The stock has a market cap of $2.04 billion, a price-to-earnings ratio of -35.14, a price-to-earnings-growth ratio of 1.27 and a beta of 1.30. The company’s fifty day moving average price is $27.65 and its 200 day moving average price is $32.76. RingCentral has a 1-year low of $20.58 and a 1-year high of $42.19.

RingCentral (NYSE:RNG) last posted its quarterly earnings data on Thursday, February 20th. The software maker reported $0.23 EPS for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.73). The business had revenue of $614.51 million during the quarter, compared to the consensus estimate of $612.37 million. RingCentral had a negative return on equity of 12.34% and a negative net margin of 2.43%. On average, sell-side analysts forecast that RingCentral will post 1.29 EPS for the current year.

Insiders Place Their Bets

In other news, SVP John H. Marlow sold 22,979 shares of RingCentral stock in a transaction on Friday, February 21st. The stock was sold at an average price of $28.82, for a total value of $662,254.78. Following the completion of the sale, the senior vice president now directly owns 348,599 shares of the company’s stock, valued at approximately $10,046,623.18. This trade represents a 6.18 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Vladimir Shmunis sold 66,112 shares of the business’s stock in a transaction on Friday, February 21st. The stock was sold at an average price of $28.83, for a total value of $1,906,008.96. Following the sale, the chief executive officer now owns 568,300 shares of the company’s stock, valued at approximately $16,384,089. The trade was a 10.42 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 247,740 shares of company stock valued at $7,099,279 in the last 90 days. 6.97% of the stock is currently owned by insiders.

Institutional Investors Weigh In On RingCentral

Several institutional investors have recently modified their holdings of RNG. Fort Washington Investment Advisors Inc. OH lifted its holdings in RingCentral by 42.4% in the first quarter. Fort Washington Investment Advisors Inc. OH now owns 783,742 shares of the software maker’s stock valued at $19,405,000 after buying an additional 233,438 shares during the period. SG Americas Securities LLC lifted its stake in shares of RingCentral by 977.7% in the 1st quarter. SG Americas Securities LLC now owns 101,379 shares of the software maker’s stock valued at $2,510,000 after purchasing an additional 91,972 shares during the period. Wedge Capital Management L L P NC lifted its stake in shares of RingCentral by 19.1% in the 1st quarter. Wedge Capital Management L L P NC now owns 68,907 shares of the software maker’s stock valued at $1,706,000 after purchasing an additional 11,037 shares during the period. GAMMA Investing LLC boosted its position in shares of RingCentral by 1,803.3% in the 1st quarter. GAMMA Investing LLC now owns 5,843 shares of the software maker’s stock worth $145,000 after purchasing an additional 5,536 shares during the last quarter. Finally, Central Pacific Bank Trust Division grew its stake in shares of RingCentral by 41.5% during the first quarter. Central Pacific Bank Trust Division now owns 7,123 shares of the software maker’s stock worth $176,000 after purchasing an additional 2,090 shares during the period. Institutional investors and hedge funds own 98.61% of the company’s stock.

RingCentral Company Profile

RingCentral, Inc, together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company’s products include RingCentral Message Video Phone that provides a unified experience for communication and collaboration across multiple modes, including HD voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions with integrated RingCentral MVP; and RingCX, an AI-powered contact center that a native delivers omnichannel experience.