Ooma (NYSE:OOMA) Stock Gets Downgrade from Zacks Research

Ooma (NYSE:OOMA - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Several other equities research analysts have also recently commented on the stock. Benchmark reiterated a "buy" rating on shares of Ooma in a research report on Monday, August 17th. Freedom Broker upped their price target on shares of Ooma from $24.00 to $25.00 and gave the company a "buy" rating in a report on Thursday, October 1st. Lake Street Capital restated a "buy" rating and set a $25.00 price objective on shares of Ooma in a research report on Thursday, August 27th. B. Riley Financial lifted their price objective on shares of Ooma from $24.00 to $27.00 and gave the stock a "buy" rating in a research note on Thursday, August 27th. Finally, William Blair set a $24.00 price target on Ooma in a report on Monday, August 17th. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Ooma currently has an average rating of "Moderate Buy" and a consensus price target of $25.00.

Ooma Stock Performance

OOMA opened at $19.01 on Tuesday. The company has a market capitalization of $524.68 million, a price-to-earnings ratio of 50.03 and a beta of 1.15. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.95 and a quick ratio of 0.66. Ooma has a 1-year low of $9.79 and a 1-year high of $26.19. The business has a 50 day moving average price of $21.15 and a two-hundred day moving average price of $17.71.

Ooma (NYSE:OOMA - Get Free Report) last issued its quarterly earnings results 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. Ooma had a return on equity of 23.55% and a net margin of 3.57%. The firm had revenue of $83.23 million during the quarter, compared to analyst estimates of $81.72 million. Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS. Research analysts predict that Ooma will post 0.87 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP Jenny C. Yeh sold 1,747 shares of Ooma stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $23.00, for a total transaction of $40,181.00. Following the transaction, the senior vice president owned 222,540 shares in the company, valued at approximately $5,118,420. The trade was a 0.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Eric B. Stang sold 10,361 shares of the company's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $22.75, for a total value of $235,712.75. Following the transaction, the chief executive officer directly owned 1,189,580 shares in the company, valued at $27,062,945. The trade was a 0.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 85,104 shares of company stock valued at $1,966,383. 9.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ooma

Several hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in Ooma in the 2nd quarter valued at approximately $69,001,000. Renaissance Technologies LLC boosted its stake in shares of Ooma by 12.2% during the 1st quarter. Renaissance Technologies LLC now owns 912,203 shares of the technology company's stock valued at $13,273,000 after buying an additional 99,100 shares during the period. Hillsdale Investment Management Inc. acquired a new stake in shares of Ooma during the 1st quarter valued at $5,847,000. Dimensional Fund Advisors LP boosted its stake in shares of Ooma by 13.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 379,007 shares of the technology company's stock valued at $5,514,000 after buying an additional 44,097 shares during the period. Finally, Globeflex Capital L P purchased a new position in shares of Ooma during the 2nd quarter valued at $4,235,000. 80.42% of the stock is owned by hedge funds and other institutional investors.

Ooma Company Profile

Ooma, Inc provides cloud-based communications and connected services for small and mid-sized businesses, enterprises and residential customers. Its business offerings are designed to support voice communications, collaboration and business continuity through internet-based platforms rather than traditional telephone systems.

The company's product portfolio includes Ooma Office, a cloud-based business phone system; Ooma Office Pro, which adds enhanced communications and collaboration features; and Ooma AirDial, a cloud-based replacement for traditional analog telephone lines.

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