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

Key Points

• Analysts hold a “Moderate Buy” consensus on Ooma, with four buy ratings and two holds. The average 12-month price target is $22.33, slightly above the stock’s reported $21.98 opening price.
• Ooma exceeded quarterly expectations, reporting EPS of $0.35 versus the $0.32 consensus and revenue of $81.15 million versus estimates of $79.84 million.
• Institutional ownership is substantial at 80.42%, including a new $69 million BlackRock position, while insiders sold 118,652 shares worth about $2.23 million over the past 90 days.

Shares of Ooma, Inc. (NYSE:OOMA - Get Free Report) have earned an average rating of "Moderate Buy" from the six ratings firms that are presently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 1 year price target among analysts that have covered the stock in the last year is $22.3333.

A number of brokerages recently weighed in on OOMA. Lake Street Capital increased their price target on shares of Ooma from $18.00 to $23.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. UBS Group set a $24.00 target price on shares of Ooma in a report on Wednesday, May 27th. Citigroup reiterated a "market perform" rating on shares of Ooma in a research note on Wednesday, May 27th. Alliance Global Partners reissued a "buy" rating on shares of Ooma in a report on Wednesday, May 27th. Finally, B. Riley Financial restated a "buy" rating on shares of Ooma in a research report on Monday, May 18th.

Ooma Price Performance

Shares of NYSE OOMA opened at $21.98 on Monday. The stock has a market cap of $604.56 million, a P/E ratio of 68.70 and a beta of 1.19. Ooma has a twelve month low of $9.79 and a twelve month high of $22.72. The stock has a 50 day moving average of $19.32 and a two-hundred day moving average of $16.23. The company has a current ratio of 0.94, a quick ratio of 0.69 and a debt-to-equity ratio of 0.50.

Ooma (NYSE:OOMA - Get Free Report) last announced its earnings results on Tuesday, May 26th. The technology company reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.32 by $0.03. The business had revenue of $81.15 million for the quarter, compared to analyst estimates of $79.84 million. Ooma had a net margin of 3.17% and a return on equity of 20.21%. Ooma has set its FY 2027 guidance at 1.290-1.340 EPS and its Q2 2027 guidance at 0.330-0.340 EPS. On average, research analysts forecast that Ooma will post 0.8 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Russell Mann sold 20,000 shares of the company's stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $18.35, for a total transaction of $367,000.00. Following the completion of the sale, the director owned 116,115 shares in the company, valued at $2,130,710.25. This represents a 14.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director William D. Pearce sold 3,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $17.98, for a total value of $53,940.00. Following the sale, the director directly owned 181,652 shares of the company's stock, valued at approximately $3,266,102.96. This represents a 1.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 118,652 shares of company stock worth $2,225,186. 9.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ooma

Several institutional investors have recently bought and sold shares of OOMA. BlackRock Inc. purchased a new position in Ooma during the 2nd quarter worth $69,001,000. Deutsche Bank AG acquired a new stake in shares of Ooma in the 2nd quarter worth $491,000. Horizon Investment Services LLC purchased a new stake in shares of Ooma in the second quarter valued at about $449,000. Bank of New York Mellon Corp purchased a new stake in shares of Ooma in the second quarter valued at about $2,315,000. Finally, State of Wyoming acquired a new position in shares of Ooma during the second quarter worth about $518,000. 80.42% of the stock is owned by institutional investors and hedge funds.

Ooma Company Profile

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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