Ooma, Inc. (NYSE:OOMA) Stock Now Rated "Buy" by Sell-Side Analysts

Key Points

• Analysts maintain a bullish view of Ooma: Eight firms give the stock an average “Buy” rating, with a consensus 12-month price target of $25.00.
• Ooma exceeded quarterly expectations, reporting $0.35 in adjusted EPS versus the $0.33 consensus and revenue of $83.23 million compared with estimates of $81.72 million.
• Ooma shares opened at $19.82, while insiders sold 86,861 shares worth approximately $2.0 million in the last quarter; institutional investors own 80.42% of the company.

Ooma, Inc. (NYSE:OOMA - Get Free Report) has earned an average rating of "Buy" from the eight research firms that are presently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $25.00.

Several analysts have recently commented on OOMA shares. Alliance Global Partners restated a "buy" rating on shares of Ooma in a research note on Thursday, August 27th. Freedom Broker increased their target price on shares of Ooma from $24.00 to $25.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. Benchmark reiterated a "buy" rating on shares of Ooma in a report on Monday, August 17th. B. Riley Financial upped their price objective on shares of Ooma from $24.00 to $27.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. Finally, UBS Group reiterated a "buy" rating on shares of Ooma in a research note on Thursday, August 27th.

Ooma Price Performance

Shares of NYSE OOMA opened at $19.82 on Friday. The company has a quick ratio of 0.66, a current ratio of 0.95 and a debt-to-equity ratio of 0.46. The business's 50 day moving average price is $21.36 and its 200 day moving average price is $19.47. Ooma has a 52 week low of $9.79 and a 52 week high of $26.19. The firm has a market cap of $546.98 million, a P/E ratio of 52.15 and a beta of 1.23.

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, topping 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 for 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. On average, sell-side analysts expect that Ooma will post 0.87 earnings per share for the current year.

Insider Buying and Selling

In related news, SVP Jenny Yeh sold 1,747 shares of the firm's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $23.00, for a total value of $40,181.00. Following the completion of the transaction, the senior vice president owned 222,540 shares in the company, valued at $5,118,420. This trade represents a 0.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Namrata Sabharwal sold 1,500 shares of the company's stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $22.16, for a total value of $33,240.00. Following the sale, the chief accounting officer owned 83,455 shares of the company's stock, valued at $1,849,362.80. This trade represents a 1.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 86,861 shares of company stock worth $2,005,037 in the last quarter. Corporate insiders own 9.90% of the company's stock.

Hedge Funds Weigh In On Ooma

Several institutional investors have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue bought a new stake in shares of Ooma in the third quarter valued at about $26,000. USA Financial Formulas acquired a new stake in Ooma in the 3rd quarter valued at about $48,000. Meeder Asset Management Inc. raised its position in Ooma by 28.3% in the first quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company's stock valued at $49,000 after purchasing an additional 740 shares during the period. Legal & General Group Plc acquired a new stake in Ooma in the 2nd quarter valued at approximately $50,000. Finally, Archer Investment Corp purchased a new stake in Ooma during the first quarter worth about $96,000. Hedge funds and other institutional investors own 80.42% of the company's stock.

About Ooma

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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