Freedom Broker Issues Positive Forecast for Ooma (NYSE:OOMA) Stock Price

Key Points

• Freedom Broker raised its Ooma price target from $24 to $25 and maintained a “buy” rating, implying 21.51% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with a $25 consensus target.
• Ooma exceeded quarterly expectations, reporting adjusted EPS of $0.35 versus the $0.33 consensus and revenue of $83.23 million versus $81.72 million expected.
• Ooma shares traded at $20.57, while insiders have sold 112,554 shares worth about $2.52 million over the past 90 days; institutional investors own 80.42% of the company.

Ooma (NYSE:OOMA - Get Free Report) had its price target increased by equities research analysts at Freedom Broker from $24.00 to $25.00 in a report released on Thursday, Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. Freedom Broker's price target indicates a potential upside of 21.51% from the stock's previous close.

OOMA has been the subject of a number of other research reports. Lake Street Capital reaffirmed a "buy" rating and set a $25.00 price target on shares of Ooma in a research report on Thursday, August 27th. B. Riley Financial boosted their target price on Ooma from $24.00 to $27.00 and gave the company a "buy" rating in a research note on Thursday, August 27th. UBS Group reaffirmed a "buy" rating on shares of Ooma in a research note on Thursday, August 27th. William Blair set a $24.00 price objective on shares of Ooma in a research report on Monday, August 17th. Finally, Alliance Global Partners restated a "buy" rating on shares of Ooma in a report on Thursday, August 27th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $25.00.

Ooma Trading Up 0.7%

Shares of NYSE OOMA traded up $0.14 during mid-day trading on Thursday, hitting $20.57. The stock had a trading volume of 176,898 shares, compared to its average volume of 326,349. The firm has a market cap of $567.87 million, a P/E ratio of 54.15 and a beta of 1.20. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.66 and a current ratio of 0.95. The business has a 50 day moving average price of $21.71 and a two-hundred day moving average price of $18.80. Ooma has a 1 year low of $9.79 and a 1 year high of $26.19.

Ooma (NYSE:OOMA - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. The firm had revenue of $83.23 million for the quarter, compared to analysts' expectations of $81.72 million. Ooma had a net margin of 3.57% and a return on equity of 23.55%. Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS. On average, equities analysts anticipate that Ooma will post 0.87 EPS for the current fiscal year.

Insider Buying and Selling at Ooma

In related news, SVP Jenny Yeh sold 20,966 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $24.05, for a total transaction of $504,232.30. Following the completion of the sale, the senior vice president owned 237,649 shares in the company, valued at approximately $5,715,458.45. This trade represents a 8.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Shigeyuki Hamamatsu sold 4,807 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $22.33, for a total transaction of $107,340.31. Following the transaction, the chief financial officer directly owned 179,420 shares in the company, valued at approximately $4,006,448.60. This trade represents a 2.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 112,554 shares of company stock worth $2,518,971. 9.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ooma

A number of large investors have recently modified their holdings of the business. Quantinno Capital Management LP raised its stake in shares of Ooma by 247.3% in the 1st quarter. Quantinno Capital Management LP now owns 70,703 shares of the technology company's stock valued at $1,029,000 after acquiring an additional 50,347 shares during the period. Bank of New York Mellon Corp acquired a new position in Ooma during the second quarter worth $2,315,000. Lazard Asset Management LLC acquired a new position in shares of Ooma during the 1st quarter worth approximately $1,415,000. Bard Associates Inc. purchased a new stake in Ooma in the 2nd quarter valued at approximately $558,000. Finally, Man Group plc purchased a new position in Ooma during the second quarter worth $878,000. Hedge funds and other institutional investors own 80.42% of the company's stock.

Ooma Company Profile

Ooma, Inc is a cloud communications company that provides voice, collaboration, and related technology services to small and midsized businesses, enterprises, and residential customers. Its services are delivered primarily through internet-based platforms designed to help customers manage communications without relying on traditional on-premises phone systems.

For businesses, Ooma offers cloud phone and unified communications solutions under brands and product lines that include Ooma Office, Ooma Pro, Ooma Enterprise, and Ooma AirDial.

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