Ooma, Inc. (NYSE:OOMA) Stock Now Rated “Buy” by Wall Street Analysts

Shares of Ooma, Inc. (NYSE:OOMA) have received an average rating of “Buy” from the eight brokerages that are presently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $25.00.

OOMA has been the topic of a number of analyst reports. Alliance Global Partners reiterated a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. William Blair set a $24.00 price objective on shares of Ooma in a research note on Monday, August 17th. Zacks Research raised Ooma from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 5th. B. Riley Financial boosted their price target on Ooma from $24.00 to $27.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. Finally, UBS Group reaffirmed a “buy” rating on shares of Ooma in a research note on Thursday, August 27th.

Ooma Stock Up 2.6%

Shares of Ooma stock opened at $20.58 on Friday. The stock has a market cap of $568.06 million, a PE ratio of 54.16 and a beta of 1.23. The business has a fifty day simple moving average of $21.29 and a 200 day simple moving average of $17.52. The company has a quick ratio of 0.66, a current ratio of 0.95 and a debt-to-equity ratio of 0.46. Ooma has a 12 month low of $9.79 and a 12 month high of $26.19.

Ooma (NYSE:OOMA) last posted its earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.02. The firm had revenue of $83.23 million for the quarter, compared to analyst estimates of $81.72 million. Ooma had a return on equity of 23.55% and a net margin of 3.57%. Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS. Research analysts predict that Ooma will post 0.87 EPS for the current year.

Insider Activity at Ooma

In other news, Director Susan Butenhoff sold 9,000 shares of the company’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $22.02, for a total transaction of $198,180.00. Following the transaction, the director owned 109,483 shares in the company, valued at approximately $2,410,815.66. This represents a 7.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Namrata Sabharwal sold 1,500 shares of the firm’s stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $22.16, for a total value of $33,240.00. Following the completion of the sale, the chief accounting officer directly owned 83,455 shares of the company’s stock, valued at $1,849,362.80. This trade represents a 1.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 85,104 shares of company stock valued at $1,966,383 over the last 90 days. 9.90% of the stock is owned by company insiders.

Institutional Trading of Ooma

Several institutional investors and hedge funds have recently modified their holdings of OOMA. BlackRock Inc. bought a new position in shares of Ooma in the second quarter valued at approximately $69,001,000. Renaissance Technologies LLC grew its position in 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 during the last quarter. Hillsdale Investment Management Inc. purchased a new position in Ooma in the 1st quarter worth $5,847,000. Dimensional Fund Advisors LP lifted its stake in shares of Ooma by 13.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 379,007 shares of the technology company’s stock valued at $5,514,000 after acquiring an additional 44,097 shares during the last quarter. Finally, Globeflex Capital L P purchased a new position in shares of Ooma in the second quarter worth $4,235,000. 80.42% of the stock is owned by hedge funds and other institutional investors.

Ooma Company Profile

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.