Hsbc Holdings PLC Makes New $1.40 Million Investment in Ooma, Inc. $OOMA

Key Points

• HSBC Holdings acquired 72,557 Ooma shares worth approximately $1.40 million in the second quarter, giving it a 0.26% stake. Institutional investors and hedge funds collectively own 80.42% of Ooma.
• Analysts remain broadly positive, with five Buy ratings and one Hold rating. Ooma has a consensus “Moderate Buy” rating and an average price target of $25, while B. Riley raised its target to $27.
• Ooma exceeded quarterly expectations, reporting $0.35 in earnings per share versus a $0.33 estimate and revenue of $83.23 million versus expectations of $81.72 million. However, insiders sold 111,922 shares worth about $2.24 million over the past 90 days.

Hsbc Holdings PLC acquired a new stake in Ooma, Inc. (NYSE:OOMA - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 72,557 shares of the technology company's stock, valued at approximately $1,395,000. Hsbc Holdings PLC owned 0.26% of Ooma as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently made changes to their positions in OOMA. PDT Partners LLC bought a new position in shares of Ooma during the second quarter worth approximately $223,000. Canada Pension Plan Investment Board bought a new stake in shares of Ooma in the second quarter valued at approximately $204,000. Legal & General Group Plc bought a new stake in shares of Ooma in the second quarter valued at approximately $50,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Ooma during the second quarter worth approximately $3,746,000. Finally, Globeflex Capital L P acquired a new stake in Ooma during the second quarter worth approximately $4,235,000. Institutional investors and hedge funds own 80.42% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on OOMA shares. UBS Group reaffirmed a "buy" rating on shares of Ooma in a report on Thursday. B. Riley Financial increased their target price on Ooma from $24.00 to $27.00 and gave the stock a "buy" rating in a report on Thursday. Citigroup restated a "market perform" rating on shares of Ooma in a research report on Wednesday, May 27th. Alliance Global Partners reaffirmed a "buy" rating on shares of Ooma in a research note on Thursday. Finally, William Blair set a $24.00 price objective on shares of Ooma in a research report on Monday, August 17th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $25.00.

Insider Transactions at Ooma

In related news, CEO Eric B. Stang sold 23,212 shares of the business's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $20.00, for a total transaction of $464,240.00. Following the sale, the chief executive officer owned 795,506 shares in the company, valued at $15,910,120. The trade was a 2.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director William D. Pearce sold 3,000 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $17.98, for a total value of $53,940.00. Following the completion of the transaction, the director directly owned 181,652 shares of the company's stock, valued at approximately $3,266,102.96. The trade was a 1.62% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 111,922 shares of company stock worth $2,240,861. Insiders own 9.90% of the company's stock.

Ooma Price Performance

Shares of NYSE:OOMA opened at $22.60 on Tuesday. Ooma, Inc. has a one year low of $9.79 and a one year high of $26.19. The company has a debt-to-equity ratio of 0.50, a current ratio of 0.94 and a quick ratio of 0.69. The company has a market cap of $621.50 million, a price-to-earnings ratio of 59.48 and a beta of 1.19. The firm has a 50 day simple moving average of $20.55 and a 200 day simple moving average of $17.28.

Ooma (NYSE:OOMA - Get Free Report) last posted its earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. The firm had revenue of $83.23 million for the quarter, compared to analysts' expectations of $81.72 million. Ooma had a net margin of 3.57% and a return on equity of 23.89%. 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, Inc. will post 0.86 earnings per share for the current fiscal year.

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.

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