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

Key Points

• Analysts rate Ooma “Moderate Buy”: Five of six covering brokerages recommend buying the stock, while one rates it a hold. The average 12-month price target is $25.00, with B. Riley recently raising its target to $27.00.
• Recent results exceeded expectations: Ooma reported quarterly EPS of $0.35 versus the $0.33 consensus estimate and revenue of $83.23 million, ahead of the $81.72 million forecast.
• Insiders have been selling while institutions hold a large stake: Company insiders sold 125,394 shares worth $2.77 million over the past quarter, while institutional investors and hedge funds own 80.42% of Ooma’s stock.

Shares of Ooma, Inc. (NYSE:OOMA - Get Free Report) have been given an average recommendation of "Moderate Buy" by the six brokerages that are currently covering the company, MarketBeat reports. One analyst has rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $25.00.

A number of brokerages recently issued reports on OOMA. Citigroup restated a "market perform" rating on shares of Ooma in a report on Monday. UBS Group restated a "buy" rating on shares of Ooma in a report on Thursday, August 27th. Lake Street Capital reissued a "buy" rating and issued a $25.00 target price on shares of Ooma in a research report on Thursday, August 27th. Alliance Global Partners restated a "buy" rating on shares of Ooma in a research report on Thursday, August 27th. Finally, B. Riley Financial raised 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.

Insiders Place Their Bets

In other news, SVP Jenny C. Yeh sold 1,747 shares of the company's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $23.00, for a total value of $40,181.00. Following the transaction, the senior vice president owned 222,540 shares in the company, valued at $5,118,420. This represents a 0.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Eric B. Stang sold 10,361 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $22.75, for a total transaction of $235,712.75. Following the completion of the sale, the chief executive officer directly owned 1,189,580 shares of the company's stock, valued at $27,062,945. This trade represents a 0.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 125,394 shares of company stock valued at $2,770,250 over the last quarter. 9.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Ooma

A number of institutional investors have recently modified their holdings of the stock. Squarepoint Ops LLC acquired a new position in shares of Ooma in the second quarter worth $244,000. Susquehanna Fundamental Investments LLC acquired a new position in Ooma in the second quarter worth approximately $549,000. Susquehanna International Group LLP raised its position in Ooma by 221.3% during the second quarter. Susquehanna International Group LLP now owns 72,537 shares of the technology company's stock valued at $1,394,000 after acquiring an additional 49,963 shares in the last quarter. Bank of America Corp DE acquired a new stake in Ooma in the second quarter valued at approximately $1,436,000. Finally, Man Group plc bought a new stake in Ooma in the second quarter worth approximately $878,000. Institutional investors and hedge funds own 80.42% of the company's stock.

Ooma Price Performance

Shares of NYSE OOMA opened at $21.19 on Tuesday. Ooma has a twelve month low of $9.79 and a twelve month high of $26.19. The company has a current ratio of 0.95, a quick ratio of 0.66 and a debt-to-equity ratio of 0.46. The firm has a 50-day moving average of $21.70 and a two-hundred day moving average of $18.70. The company has a market capitalization of $584.82 million, a price-to-earnings ratio of 55.76 and a beta of 1.20.

Ooma (NYSE:OOMA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.02. Ooma had a net margin of 3.57% and a return on equity of 23.55%. The company had revenue of $83.23 million for the quarter, compared to analysts' expectations 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. As a group, analysts expect that Ooma will post 0.87 earnings per share for the current fiscal year.

About Ooma

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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