Ooma (NYSE:OOMA) Stock Price Breaks Above 200-Day Moving Average - Here's What Happened

Key Points

• Ooma shares rose 2.5% and moved above their 200-day moving average of $17.77, reaching $18.06 before last trading at about $18.01.
• Analysts maintain a “Moderate Buy” consensus, with six Buy and two Hold ratings and an average price target of $25; B. Riley raised its target to $27.
• In its latest reported quarter, Ooma earned $0.35 per share, topping the $0.33 estimate, and revenue of $83.23 million exceeded the $81.72 million forecast.

Ooma, Inc. (NYSE:OOMA - Get Free Report)'s share price passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $17.77 and traded as high as $18.06. Ooma shares last traded at $18.0060, with a volume of 200,033 shares trading hands.

Analysts Set New Price Targets

A number of brokerages recently issued reports on OOMA. B. Riley Financial increased their price objective on Ooma from $24.00 to $27.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. Lake Street Capital reaffirmed a "buy" rating and set a $25.00 target price on shares of Ooma in a research report on Thursday, August 27th. Freedom Broker lifted their target price on shares of Ooma from $24.00 to $25.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. Alliance Global Partners restated a "buy" rating on shares of Ooma in a research report on Thursday, August 27th. Finally, Benchmark restated a "buy" rating on shares of Ooma in a research note on Monday, August 17th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $25.00.

Ooma Stock Up 2.5%

The stock has a market cap of $496.97 million, a P/E ratio of 47.39 and a beta of 1.15. The stock's fifty day simple moving average is $20.99 and its 200-day simple moving average is $17.77. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.66 and a current ratio of 0.95.

Ooma (NYSE:OOMA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. Ooma had a return on equity of 23.55% and a net margin of 3.57%. The company had revenue of $83.23 million during the quarter, compared to analyst estimates of $81.72 million. Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS. As a group, research analysts forecast that Ooma, Inc. will post 0.87 earnings per share for the current fiscal year.

Insider Transactions at Ooma

In related news, SVP Jenny Yeh sold 20,966 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $24.05, for a total transaction of $504,232.30. Following the sale, the senior vice president owned 237,649 shares in the company, valued at approximately $5,715,458.45. This represents a 8.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Shigeyuki Hamamatsu sold 4,807 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $22.33, for a total value of $107,340.31. Following the completion of the transaction, the chief financial officer owned 179,420 shares of the company's stock, valued at $4,006,448.60. The trade was a 2.61% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 85,104 shares of company stock valued at $1,966,383. 9.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ooma

A number of large investors have recently bought and sold shares of OOMA. Essential Partners LLC raised its stake in shares of Ooma by 8.3% in the first 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 in the last quarter. Meeder Asset Management Inc. increased its position in Ooma by 28.3% during the 1st 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. State of Alaska Department of Revenue bought a new position in shares of Ooma during the 3rd quarter valued at approximately $26,000. USA Financial Formulas acquired a new stake in Ooma in the third quarter worth about $48,000. Finally, Legal & General Group Plc purchased a new position in shares of Ooma during the 2nd quarter worth $50,000. Institutional investors and hedge funds own 80.42% of the company's stock.

About Ooma

Ooma, Inc provides cloud-based communications and connected services for small and mid-sized businesses, enterprises and residential customers. Its business offerings are designed to support voice communications, collaboration and business continuity through internet-based platforms rather than traditional telephone systems.

The company's product portfolio includes Ooma Office, a cloud-based business phone system; Ooma Office Pro, which adds enhanced communications and collaboration features; and Ooma AirDial, a cloud-based replacement for traditional analog telephone lines.

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