Ooma, Inc. (NYSE:OOMA) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a Moderate Buy consensus on Ooma, with five Buy ratings and one Hold rating. The average 12-month price target is $25, while B. Riley raised its target to $27.
• Ooma exceeded quarterly expectations, reporting EPS of $0.35 versus the $0.33 consensus and revenue of $83.23 million versus $81.72 million expected. Analysts also raised several longer-term earnings estimates, though some forecasts were modestly reduced.
• Ooma shares opened at $23.30, up 3.4%, with the stock trading near its 52-week high of $26.19. Institutional investors own 80.42% of the company, while insiders sold approximately $2.38 million of stock over the last quarter.

Shares of Ooma, Inc. (NYSE:OOMA - Get Free Report) have been given a consensus rating of "Moderate Buy" by the six analysts that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $25.00.

Several equities analysts have recently commented on OOMA shares. UBS Group restated a "buy" rating on shares of Ooma in a research report on Thursday, August 27th. Citigroup reiterated a "market perform" rating on shares of Ooma in a research report on Wednesday, May 27th. Lake Street Capital restated a "buy" rating and issued a $25.00 price target on shares of Ooma in a research note on Thursday, August 27th. Alliance Global Partners reaffirmed a "buy" rating on shares of Ooma in a report on Thursday, August 27th. Finally, B. Riley Financial boosted their price objective on Ooma from $24.00 to $27.00 and gave the stock a "buy" rating in a research report on Thursday, August 27th.

Ooma News Summary

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Analysts raised several earnings forecasts. Lake Street Capital increased its FY2027 EPS estimate to $0.86 from $0.79 and its FY2028 estimate to $0.86 from $0.83. Benchmark lifted its FY2027 estimate to $0.89 from $0.83 and its FY2028 estimate to $1.03 from $0.98. Citizens JMP also raised its FY2027 estimate to $0.83 from $0.77 and FY2028 to $0.96 from $0.90. These revisions reinforce expectations for improving profitability at Ooma. Analyst earnings estimate reports
• Positive Sentiment: Buy ratings and a $25 price target provide support. Lake Street Capital and Benchmark maintained Buy ratings; Lake Street’s $25 target remains above the stock’s referenced trading level. Citizens JMP’s estimates imply EPS growth from the current-year consensus of $0.86 to $0.96 in FY2028 and $1.20 in FY2029, although its FY2029 estimate was modestly reduced. Ooma analyst ratings and estimates
• Neutral Sentiment: Ooma will meet institutional investors on September 23. CEO Eric Stang, CFO Shig Hamamatsu and senior corporate-development executive Chris Burgy are scheduled to hold virtual meetings during the NYSE Investor Access Technology Day. The event could offer updates on strategy, growth and artificial-intelligence initiatives, but no new guidance was announced. Ooma NYSE Investor Access Technology Day announcement
• Neutral Sentiment: Industry views on AI-enabled VoIP and unified communications are mixed. The broader assessment suggests that AI capabilities vary considerably among providers, making the article relevant to Ooma’s competitive positioning but offering no specific new product or financial information about the company. AI capabilities in VoIP and unified communications offerings
• Negative Sentiment: Some estimate reductions temper the optimism. Citizens JMP lowered its Q1 2029 EPS forecast to $0.28 from $0.29, its Q3 2028 estimate to $0.24 from $0.25, and its FY2029 estimate to $1.20 from $1.21. Lake Street also trimmed its Q4 2027 estimate to $0.19 from $0.20. These cuts indicate that the outlook is positive overall but not uniformly improving.

Ooma Stock Up 3.4%

Shares of Ooma stock opened at $23.30 on Friday. The stock has a market capitalization of $640.75 million, a price-to-earnings ratio of 61.32 and a beta of 1.20. Ooma has a twelve month low of $9.79 and a twelve month high of $26.19. The company has a current ratio of 0.94, a quick ratio of 0.69 and a debt-to-equity ratio of 0.50. The business's 50 day simple moving average is $20.82 and its 200-day simple moving average is $17.52.

Ooma (NYSE:OOMA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. Ooma had a return on equity of 23.89% and a net margin of 3.57%.The firm had revenue of $83.23 million during the quarter, compared to the consensus estimate 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. Equities research analysts forecast that Ooma will post 0.87 earnings per share for the current year.

Insider Transactions at Ooma

In other Ooma news, Director William D. Pearce sold 3,000 shares of the business's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $17.98, for a total transaction of $53,940.00. Following the completion of the transaction, the director owned 181,652 shares in the company, valued at approximately $3,266,102.96. The trade was a 1.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Jenny C. Yeh sold 1,226 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $23.00, for a total value of $28,198.00. Following the completion of the transaction, the senior vice president directly owned 232,601 shares of the company's stock, valued at approximately $5,349,823. The trade was a 0.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 117,955 shares of company stock worth $2,376,399 over the last quarter. Insiders own 9.90% of the company's stock.

Institutional Investors Weigh In On Ooma

Several institutional investors have recently bought and sold shares of the stock. Quantinno Capital Management LP raised its position in shares of Ooma by 247.3% during the 1st quarter. Quantinno Capital Management LP now owns 70,703 shares of the technology company's stock worth $1,029,000 after buying an additional 50,347 shares in the last quarter. Lazard Asset Management LLC bought a new position in shares of Ooma in the first quarter valued at approximately $1,415,000. Hsbc Holdings PLC boosted its holdings in shares of Ooma by 107.3% in the fourth quarter. Hsbc Holdings PLC now owns 96,830 shares of the technology company's stock valued at $1,132,000 after acquiring an additional 50,114 shares in the last quarter. North Star Investment Management Corp. acquired a new position in shares of Ooma during the first quarter valued at approximately $873,000. Finally, Bard Associates Inc. acquired a new position in shares of Ooma during the second quarter valued at approximately $558,000. Institutional investors and hedge funds own 80.42% of the company's stock.

About Ooma

Ooma, Inc, headquartered in Sunnyvale, California, is a leading provider of communication services for residential and business customers. Since its founding in 2004, Ooma has built a cloud-based platform that leverages Voice over Internet Protocol (VoIP) technology to deliver voice, video and data services over broadband networks. The company went public on the New York Stock Exchange in 2015 under the ticker OOMA and has continued to expand its service portfolio to meet evolving customer demands.

For residential users, Ooma offers an all-in-one home phone service that includes its flagship Telo device, mobile and web applications, and optional smart home security features.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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