Ooma (NYSE:OOMA) Reaches New 12-Month High Following Strong Earnings

Shares of Ooma, Inc. (NYSE:OOMA) hit a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $19.60 and last traded at $19.50, with a volume of 89131 shares trading hands. The stock had previously closed at $19.12.

The technology company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.03. The firm had revenue of $81.15 million during the quarter, compared to analyst estimates of $79.84 million. Ooma had a net margin of 3.17% and a return on equity of 20.52%. Ooma has set its FY 2027 guidance at 1.290-1.340 EPS and its Q2 2027 guidance at 0.330-0.340 EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on OOMA shares. B. Riley Financial restated a “buy” rating on shares of Ooma in a research report on Monday, May 18th. Lake Street Capital boosted their price target on shares of Ooma from $18.00 to $23.00 and gave the company a “buy” rating in a research report on Wednesday. Benchmark restated a “buy” rating on shares of Ooma in a research report on Thursday, March 5th. Citigroup reiterated a “market perform” rating on shares of Ooma in a research report on Wednesday. Finally, Alliance Global Partners reiterated a “buy” rating on shares of Ooma in a research report on Wednesday. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $22.33.

Insider Transactions at Ooma

In related news, CFO Shigeyuki Hamamatsu sold 10,790 shares of the company’s stock in a transaction on Friday, March 6th. The shares were sold at an average price of $14.22, for a total value of $153,433.80. Following the completion of the transaction, the chief financial officer directly owned 231,128 shares in the company, valued at approximately $3,286,640.16. The trade was a 4.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 9.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OOMA. Amundi purchased a new position in Ooma in the first quarter worth $387,000. AQR Capital Management LLC bought a new stake in Ooma in the first quarter worth $478,000. Millennium Management LLC lifted its stake in Ooma by 81.6% in the first quarter. Millennium Management LLC now owns 316,564 shares of the technology company’s stock worth $4,144,000 after purchasing an additional 142,220 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Ooma by 4.8% in the first quarter. Goldman Sachs Group Inc. now owns 248,612 shares of the technology company’s stock worth $3,254,000 after purchasing an additional 11,300 shares during the last quarter. Finally, Jane Street Group LLC lifted its stake in Ooma by 162.6% in the first quarter. Jane Street Group LLC now owns 34,227 shares of the technology company’s stock worth $448,000 after purchasing an additional 21,192 shares during the last quarter. 80.42% of the stock is currently owned by hedge funds and other institutional investors.

Ooma Price Performance

The company has a debt-to-equity ratio of 0.55, a current ratio of 0.93 and a quick ratio of 0.70. The firm has a market capitalization of $488.80 million, a P/E ratio of 26.01 and a beta of 1.20. The firm’s 50 day simple moving average is $16.27 and its two-hundred day simple moving average is $13.43.

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.