Ooma (NYSE:OOMA) Stock Price Breaks Below 50-Day Moving Average – Time to Sell?

Ooma, Inc. (NYSE:OOMA)’s stock price crossed below its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $21.53 and traded as low as $19.77. Ooma shares last traded at $19.8990, with a volume of 333,803 shares traded.

Analyst Ratings Changes

Several analysts recently issued reports on the company. B. Riley Financial lifted their target price on Ooma from $24.00 to $27.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. William Blair set a $24.00 price target on Ooma in a research note on Monday, August 17th. Lake Street Capital reaffirmed a “buy” rating and set a $25.00 price objective on shares of Ooma in a report on Thursday, August 27th. Benchmark reaffirmed a “buy” rating on shares of Ooma in a report on Monday, August 17th. Finally, Alliance Global Partners reiterated a “buy” rating on shares of Ooma in a research report on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $25.00.

Ooma Trading Down 3.7%

The stock has a market cap of $544.55 million, a PE ratio of 51.92 and a beta of 1.23. The stock has a 50-day moving average price of $21.51 and a two-hundred day moving average price of $19.29. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.95 and a quick ratio of 0.66.

Ooma (NYSE:OOMA) last issued its earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share (EPS) 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 analysts’ expectations 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. Sell-side analysts forecast that Ooma, Inc. will post 0.87 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Jenny C. Yeh sold 20,966 shares of the business’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $24.05, for a total value 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. The trade was a 8.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Namrata Sabharwal sold 2,481 shares of the company’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $23.20, for a total transaction of $57,559.20. Following the sale, the chief accounting officer directly owned 83,927 shares in the company, valued at approximately $1,947,106.40. The trade was a 2.87% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 86,861 shares of company stock worth $2,005,037. 9.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ooma

Institutional investors and hedge funds have recently made changes to their positions in the business. State of Alaska Department of Revenue bought a new position in shares of Ooma in the 3rd quarter valued at about $26,000. 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 worth $49,000 after acquiring an additional 740 shares in the last quarter. Legal & General Group Plc purchased a new position in Ooma in the second quarter worth about $50,000. Archer Investment Corp purchased a new position in Ooma in the first quarter worth about $96,000. Finally, Essential Partners LLC increased its stake in Ooma by 8.3% during the first quarter. Essential Partners LLC now owns 8,197 shares of the technology company’s stock worth $119,000 after acquiring an additional 626 shares during the last quarter. 80.42% of the stock is owned by hedge funds and other institutional investors.

Ooma Company Profile

Ooma, Inc is a cloud communications company that provides voice, collaboration, and related services to small and midsize businesses, enterprises, and consumers. Its business offerings are designed to replace or complement traditional business phone systems with internet-based communications delivered through software and connected devices.

Ooma’s business products include Ooma Office, Ooma Pro, and Ooma Enterprise, which provide cloud-based phone systems, business texting, virtual extensions, conferencing, call management, and other unified communications features.