Ooma (NYSE:OOMA) Stock Crosses Below 50-Day Moving Average - Should You Sell?

Key Points

• Ooma's stock price fell below its 50-day moving average of $12.61, trading as low as $11.33 and closing at $11.37.
• Recent insider transactions included CAO Namrata Sabharwal selling 9,491 shares and Director Andrew H. Galligan selling 12,407 shares, indicating a decrease in their positions.
• Institutional investors hold 80.42% of Ooma's stock, with notable increases from Vanguard Group Inc. and Millennium Management LLC during the last quarters.

Ooma, Inc. (NYSE:OOMA - Get Free Report)'s share price passed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of $12.61 and traded as low as $11.33. Ooma shares last traded at $11.37, with a volume of 138,131 shares.

Ooma Trading Down 0.7%

The company has a market capitalization of $311.60 million, a price-to-earnings ratio of -59.42 and a beta of 1.21. The company's 50 day simple moving average is $12.54 and its 200-day simple moving average is $13.17.

Insider Activity

In other Ooma news, Director Andrew H. Galligan sold 12,407 shares of the firm's stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $12.43, for a total transaction of $154,219.01. Following the sale, the director directly owned 241,081 shares of the company's stock, valued at $2,996,636.83. This trade represents a 4.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Eric B. Stang sold 10,727 shares of the firm's stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $12.98, for a total transaction of $139,236.46. Following the sale, the chief executive officer directly owned 1,236,997 shares in the company, valued at $16,056,221.06. This represents a 0.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 51,609 shares of company stock valued at $666,657 over the last quarter. 9.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ooma

Several hedge funds have recently modified their holdings of OOMA. AlphaQuest LLC purchased a new position in Ooma in the second quarter valued at approximately $234,000. New York State Teachers Retirement System raised its holdings in Ooma by 2,188.0% in the second quarter. New York State Teachers Retirement System now owns 2,288 shares of the technology company's stock valued at $30,000 after buying an additional 2,188 shares during the period. Longboard Asset Management LP purchased a new position in Ooma in the second quarter valued at approximately $147,000. Goldman Sachs Group Inc. raised its holdings in Ooma by 4.8% in the first quarter. Goldman Sachs Group Inc. now owns 248,612 shares of the technology company's stock valued at $3,254,000 after buying an additional 11,300 shares during the period. Finally, Voya Investment Management LLC raised its holdings in Ooma by 42.6% in the first quarter. Voya Investment Management LLC now owns 40,789 shares of the technology company's stock valued at $534,000 after buying an additional 12,185 shares during the period. 80.42% of the stock is owned by institutional investors and hedge funds.

About Ooma

Ooma, Inc provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Connect, which delivers fixed wireless internet connectivity; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution.