Ooma (NYSE:OOMA) Reaches New 1-Year High - Time to Buy?

Key Points

• Ooma shares hit a new 52-week high, trading as high as $19.56 before last changing hands near $18.93. The move comes as investors continue to bid up the stock.
• Wall Street sentiment remains positive, with Benchmark reaffirming a buy rating and MarketBeat showing a consensus Moderate Buy with a $19.00 target price. Two analysts rate the stock a Buy, while one rates it Hold.
• The company recently beat earnings and revenue estimates, reporting $0.34 EPS on $74.58 million in revenue versus expectations of $0.31 EPS and $72.55 million. However, an Ooma CFO also disclosed selling shares in early March.

Ooma, Inc. (NYSE:OOMA - Get Free Report)'s share price reached a new 52-week high during trading on Monday . The stock traded as high as $19.56 and last traded at $18.9270, with a volume of 20371 shares changing hands. The stock had previously closed at $19.31.

Wall Street Analyst Weigh In

Separately, Benchmark reaffirmed a "buy" rating on shares of Ooma in a report on Thursday, March 5th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Ooma currently has a consensus rating of "Moderate Buy" and a consensus target price of $19.00.

Ooma Stock Performance

The company has a market capitalization of $520.90 million, a P/E ratio of 85.84 and a beta of 1.20. The firm has a 50 day moving average price of $14.67 and a two-hundred day moving average price of $12.65. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.70 and a current ratio of 0.93.

Ooma (NYSE:OOMA - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The technology company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.03. Ooma had a return on equity of 15.60% and a net margin of 2.36%.The company had revenue of $74.58 million for the quarter, compared to analyst estimates of $72.55 million. Ooma has set its FY 2027 guidance at 1.260-1.310 EPS and its Q1 2027 guidance at 0.310-0.330 EPS. On average, research analysts expect that Ooma, Inc. will post 0.78 earnings per share for the current fiscal year.

Insider Buying and Selling at Ooma

In other news, CFO Shigeyuki Hamamatsu sold 10,790 shares of the company's stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $14.22, for a total value of $153,433.80. Following the sale, the chief financial officer directly owned 231,128 shares in the company, valued at approximately $3,286,640.16. This represents a 4.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 9.90% of the company's stock.

Institutional Investors Weigh In On Ooma

A number of large investors have recently bought and sold shares of OOMA. Versant Capital Management Inc raised its position in Ooma by 465.3% in the 3rd quarter. Versant Capital Management Inc now owns 2,589 shares of the technology company's stock valued at $31,000 after purchasing an additional 2,131 shares during the last quarter. IFC & Insurance Marketing Inc. acquired a new position in Ooma in the fourth quarter worth $34,000. CWM LLC grew its holdings in shares of Ooma by 50.5% during the third quarter. CWM LLC now owns 3,022 shares of the technology company's stock worth $36,000 after purchasing an additional 1,014 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in shares of Ooma by 225.2% in the second quarter. Tower Research Capital LLC TRC now owns 3,620 shares of the technology company's stock valued at $47,000 after buying an additional 2,507 shares in the last quarter. Finally, Meeder Asset Management Inc. increased its stake in shares of 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 buying an additional 740 shares in the last quarter. 80.42% of the stock is currently owned by institutional investors.

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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