Ooma (NYSE:OOMA) Stock Rating Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Ooma to “strong buy” from “hold,” while analysts overall maintain a “buy” consensus with an average price target of $25.
• Ooma’s latest quarterly results exceeded expectations, with earnings of $0.35 per share versus the $0.33 consensus and revenue of $83.23 million versus $81.72 million expected.
• The stock opened at $19.96 after declining 4.9%; institutional investors own approximately 80.42% of shares, while company insiders sold 110,073 shares worth about $2.47 million during the last quarter.

Ooma (NYSE:OOMA - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Monday, Zacks reports.

A number of other equities research analysts have also weighed in on the company. Alliance Global Partners reaffirmed a "buy" rating on shares of Ooma in a research report on Thursday, August 27th. B. Riley Financial increased their price target on Ooma from $24.00 to $27.00 and gave the stock a "buy" rating in a research report on Thursday, August 27th. UBS Group restated a "buy" rating on shares of Ooma in a research note on Thursday, August 27th. Citigroup restated a "market perform" rating on shares of Ooma in a report on Monday, September 28th. Finally, William Blair set a $24.00 price objective on shares of Ooma in a research note on Monday, August 17th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Buy" and an average target price of $25.00.

Ooma Trading Down 4.9%

NYSE OOMA opened at $19.96 on Monday. The stock has a market cap of $551.03 million, a PE ratio of 52.54 and a beta of 1.23. Ooma has a 12 month low of $9.79 and a 12 month high of $26.19. The company's 50-day moving average price is $21.72 and its 200-day moving average price is $18.99. The company has a current ratio of 0.95, a quick ratio of 0.66 and a debt-to-equity ratio of 0.46.

Ooma (NYSE:OOMA - Get Free Report) last issued its earnings results on Wednesday, August 26th. The technology company reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. The business had revenue of $83.23 million for the quarter, compared to the consensus estimate 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. Equities research analysts forecast that Ooma will post 0.87 earnings per share for the current year.

Insider Buying and Selling at Ooma

In other news, CFO Shigeyuki Hamamatsu sold 4,807 shares of Ooma stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $22.33, for a total value of $107,340.31. Following the transaction, the chief financial officer owned 179,420 shares of the company's stock, valued at $4,006,448.60. The trade was a 2.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Jenny C. Yeh sold 1,747 shares of the business's stock in a transaction that occurred 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 of the company's stock, valued at approximately $5,118,420. This trade represents a 0.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 110,073 shares of company stock valued at $2,469,277. 9.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ooma

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

Ooma Company Profile

Ooma, Inc is a cloud communications company that provides voice, collaboration, and related services to small and midsize businesses, enterprises, and consumers. Its business offerings are designed to replace or complement traditional business phone systems with internet-based communications delivered through software and connected devices.

Ooma's business products include Ooma Office, Ooma Pro, and Ooma Enterprise, which provide cloud-based phone systems, business texting, virtual extensions, conferencing, call management, and other unified communications features.

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