Ooma (NYSE:OOMA) Stock Dropped to Hold by Zacks Research

Zacks Research lowered shares of Ooma (NYSE:OOMA) from a strong-buy rating to a hold rating in a research note published on Tuesday,Zacks reports.

A number of other brokerages have also commented on OOMA. UBS Group reissued a “buy” rating on shares of Ooma in a research report on Thursday, August 27th. Alliance Global Partners restated a “buy” rating on shares of Ooma in a report on Thursday, August 27th. William Blair set a $24.00 target price on shares of Ooma in a research report on Monday, August 17th. Benchmark reiterated a “buy” rating on shares of Ooma in a research note on Monday, August 17th. Finally, Freedom Broker lifted their price target on shares of Ooma from $24.00 to $25.00 and gave the company a “buy” rating in a research note on Thursday, October 1st. Six investment 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 presently has an average rating of “Moderate Buy” and a consensus target price of $25.00.

Ooma Stock Up 1.3%

NYSE:OOMA opened at $19.01 on Tuesday. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.66 and a current ratio of 0.95. The company has a market cap of $524.68 million, a PE ratio of 50.03 and a beta of 1.15. Ooma has a 52-week low of $9.79 and a 52-week high of $26.19. The stock has a 50-day simple moving average of $21.15 and a 200 day simple moving average of $17.71.

Ooma (NYSE:OOMA) last announced its earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.02. The business 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. On average, sell-side analysts expect that Ooma will post 0.87 EPS for the current fiscal year.

Insider Activity

In other Ooma news, CEO Eric B. Stang sold 29,639 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $23.08, for a total transaction of $684,068.12. Following the transaction, the chief executive officer owned 1,199,941 shares of the company’s stock, valued at $27,694,638.28. The trade was a 2.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Susan Butenhoff sold 9,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $22.02, for a total value of $198,180.00. Following the sale, the director owned 109,483 shares in the company, valued at approximately $2,410,815.66. This represents a 7.60% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 85,104 shares of company stock valued at $1,966,383. Corporate insiders own 9.90% of the company’s stock.

Institutional Investors Weigh In On Ooma

Several large investors have recently made changes to their positions in OOMA. Essential Partners LLC raised its position 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 in the last quarter. Meeder Asset Management Inc. grew its position in shares of Ooma by 28.3% in the 1st 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. State of Alaska Department of Revenue bought a new position in shares of Ooma in the 3rd quarter valued at about $26,000. USA Financial Formulas bought a new position in shares of Ooma in the 3rd quarter valued at about $48,000. Finally, Legal & General Group Plc acquired a new position in shares of Ooma during the 2nd quarter worth about $50,000. Institutional investors and hedge funds own 80.42% of the company’s stock.

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.