Ooma (NYSE:OOMA) Shares Gap Up - Here's Why

Key Points

• Ooma shares gapped up at the open, rising from a prior close of $20.18 to an open of $20.98 before settling around $20.09 in early trading.
• Wall Street sentiment is upbeat: several analysts maintained buy ratings, Lake Street Capital raised its target to $23, and UBS set a $24 target. The stock’s consensus rating is Moderate Buy with an average price target of $22.33.
• Ooma recently reported better-than-expected quarterly results, with EPS of $0.35 versus $0.32 expected and revenue of $81.15 million versus $79.84 million expected. The company also showed ongoing insider selling and strong institutional ownership at 80.42%.

Shares of Ooma, Inc. (NYSE:OOMA - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $20.18, but opened at $20.98. Ooma shares last traded at $20.0920, with a volume of 69,320 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Lake Street Capital upped their target price on Ooma from $18.00 to $23.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. Alliance Global Partners restated a "buy" rating on shares of Ooma in a research report on Wednesday, May 27th. Citigroup reissued a "market perform" rating on shares of Ooma in a report on Wednesday, May 27th. B. Riley Financial reissued a "buy" rating on shares of Ooma in a research report on Monday, May 18th. Finally, UBS Group set a $24.00 price objective on shares of Ooma in a report on Wednesday, May 27th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Ooma has a consensus rating of "Moderate Buy" and an average target price of $22.33.

Ooma Price Performance

The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.69 and a current ratio of 0.94. The company has a market capitalization of $566.23 million, a price-to-earnings ratio of 64.55 and a beta of 1.20. The company has a 50-day moving average price of $18.38 and a 200-day moving average price of $14.92.

Ooma (NYSE:OOMA - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The technology company reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.32 by $0.03. Ooma had a net margin of 3.17% and a return on equity of 20.21%. The company had revenue of $81.15 million for the quarter, compared to analysts' expectations of $79.84 million. 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, equities research analysts expect that Ooma, Inc. will post 0.8 EPS for the current fiscal year.

Insider Buying and Selling at Ooma

In related news, SVP Jenny C. Yeh sold 12,840 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $19.57, for a total value of $251,278.80. Following the sale, the senior vice president owned 264,615 shares in the company, valued at approximately $5,178,515.55. This represents a 4.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Shigeyuki Hamamatsu sold 27,696 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $17.64, for a total value of $488,557.44. Following the completion of the transaction, the chief financial officer directly owned 193,283 shares in the company, valued at $3,409,512.12. The trade was a 12.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 93,683 shares of company stock valued at $1,722,292 in the last three months. 9.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ooma

Several hedge funds have recently bought and sold shares of OOMA. Essential Partners LLC increased its stake in shares of Ooma by 8.3% in the 1st quarter. Essential Partners LLC now owns 8,197 shares of the technology company's stock valued at $119,000 after purchasing an additional 626 shares during the last quarter. Quantinno Capital Management LP boosted its position in shares of Ooma by 247.3% during the 1st quarter. Quantinno Capital Management LP now owns 70,703 shares of the technology company's stock valued at $1,029,000 after purchasing an additional 50,347 shares in the last quarter. Lazard Asset Management LLC acquired a new stake in Ooma in the first quarter worth $1,415,000. Renaissance Technologies LLC increased its holdings in shares of Ooma by 12.2% during the first quarter. Renaissance Technologies LLC now owns 912,203 shares of the technology company's stock valued at $13,273,000 after acquiring an additional 99,100 shares in the last quarter. Finally, Walleye Capital LLC raised its holdings in shares of Ooma by 63.3% in the 1st quarter. Walleye Capital LLC now owns 35,662 shares of the technology company's stock worth $519,000 after acquiring an additional 13,829 shares during the last quarter. 80.42% of the stock is 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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