Ooma (NYSE:OOMA) Shares Cross Above 50 Day Moving Average – Should You Sell?

Ooma, Inc. (NYSE:OOMA) passed above its 50 day moving average during trading on Monday . The stock has a 50 day moving average of $15.52 and traded as high as $19.51. Ooma shares last traded at $19.3510, with a volume of 315,821 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on OOMA. B. Riley Financial reaffirmed a “buy” rating on shares of Ooma in a research note on Monday. Benchmark reaffirmed a “buy” rating on shares of Ooma in a research note on Thursday, March 5th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Ooma has an average rating of “Moderate Buy” and a consensus price target of $19.00.

Ooma Stock Performance

The stock has a 50-day moving average of $15.72 and a 200 day moving average of $13.14. 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 stock has a market capitalization of $526.51 million, a price-to-earnings ratio of 87.00 and a beta of 1.20.

Ooma (NYSE:OOMA) last announced its quarterly earnings data on Wednesday, March 4th. The technology company reported $0.34 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.03. The firm had revenue of $74.58 million during the quarter, compared to analyst estimates of $72.55 million. Ooma had a return on equity of 15.60% and a net margin of 2.36%.Ooma has set its FY 2027 guidance at 1.260-1.310 EPS and its Q1 2027 guidance at 0.310-0.330 EPS. On average, analysts expect that Ooma, Inc. will post 0.78 EPS for the current year.

Insider Buying and Selling

In related news, CFO Shigeyuki Hamamatsu sold 10,790 shares of Ooma stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $14.22, for a total value of $153,433.80. Following the completion of the sale, the chief financial officer directly owned 231,128 shares in the company, valued at $3,286,640.16. This trade represents a 4.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 9.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ooma

Institutional investors have recently modified their holdings of the stock. Versant Capital Management Inc grew its position in shares of Ooma by 465.3% during the 3rd quarter. Versant Capital Management Inc now owns 2,589 shares of the technology company’s stock worth $31,000 after buying an additional 2,131 shares during the period. IFC & Insurance Marketing Inc. acquired a new position in shares of Ooma during the 4th quarter worth about $34,000. CWM LLC grew its position in shares of Ooma by 50.5% during the 3rd quarter. CWM LLC now owns 3,022 shares of the technology company’s stock worth $36,000 after buying an additional 1,014 shares during the period. Meeder Asset Management Inc. grew its position in shares of Ooma by 28.3% during the 1st quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company’s stock worth $49,000 after buying an additional 740 shares during the period. Finally, Tower Research Capital LLC TRC grew its position in shares of Ooma by 225.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,620 shares of the technology company’s stock worth $47,000 after buying an additional 2,507 shares during the period. 80.42% of the stock is currently 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.