Ooma (NYSE:OOMA) Hits New 52-Week High – Time to Buy?

Ooma, Inc. (NYSE:OOMA)’s share price hit a new 52-week high on Monday . The company traded as high as $22.50 and last traded at $22.50, with a volume of 1412 shares changing hands. The stock had previously closed at $21.75.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on OOMA. UBS Group set a $24.00 price target on shares of Ooma in a research report on Wednesday, May 27th. Lake Street Capital increased their target price on shares of Ooma from $18.00 to $23.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Citigroup reissued a “market perform” rating on shares of Ooma in a research report on Wednesday, May 27th. Alliance Global Partners reissued a “buy” rating on shares of Ooma in a research report on Wednesday, May 27th. Finally, B. Riley Financial restated a “buy” rating on shares of Ooma in a research note on Monday, May 18th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Ooma presently has an average rating of “Moderate Buy” and a consensus price target of $22.33.

Ooma Stock Performance

The stock has a market capitalization of $622.08 million, a P/E ratio of 70.30 and a beta of 1.19. The firm has a 50-day moving average of $18.99 and a 200 day moving average of $15.89. The company has a quick ratio of 0.69, a current ratio of 0.94 and a debt-to-equity ratio of 0.50.

Ooma (NYSE:OOMA) last posted 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 firm had revenue of $81.15 million for the quarter, compared to the consensus estimate 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. Research analysts anticipate that Ooma, Inc. will post 0.8 EPS for the current fiscal year.

Insiders Place Their Bets

In other Ooma news, Director William D. Pearce sold 3,000 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $17.98, for a total transaction of $53,940.00. Following the completion of the transaction, the director owned 181,652 shares in the company, valued at $3,266,102.96. This trade represents a 1.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Shigeyuki Hamamatsu sold 27,696 shares of Ooma 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 sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 118,652 shares of company stock valued at $2,225,186 over the last 90 days. Company insiders own 9.90% of the company’s stock.

Hedge Funds Weigh In On Ooma

A number of hedge funds have recently modified their holdings of OOMA. Essential Partners LLC lifted its position in shares of Ooma by 8.3% during the 1st quarter. Essential Partners LLC now owns 8,197 shares of the technology company’s stock worth $119,000 after buying an additional 626 shares during the period. Meeder Asset Management Inc. grew its position in 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 acquiring an additional 740 shares during the period. Royal Bank of Canada grew its position in Ooma by 24.1% in the fourth quarter. Royal Bank of Canada now owns 4,466 shares of the technology company’s stock valued at $53,000 after acquiring an additional 867 shares during the period. Man Group plc raised its stake in Ooma by 5.1% during the fourth quarter. Man Group plc now owns 18,073 shares of the technology company’s stock worth $212,000 after acquiring an additional 880 shares in the last quarter. Finally, GSA Capital Partners LLP raised its stake in Ooma by 1.0% during the fourth quarter. GSA Capital Partners LLP now owns 111,522 shares of the technology company’s stock worth $1,308,000 after acquiring an additional 1,067 shares in the last quarter. 80.42% of the stock is owned by institutional investors and hedge funds.

Ooma Company Profile

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.