Ooma (NYSE:OOMA) Hits New 1-Year High on Better-Than-Expected Earnings

Ooma, Inc. (NYSE:OOMA)’s stock price hit a new 52-week high on Tuesday following a better than expected earnings announcement. The stock traded as high as $19.60 and last traded at $19.50, with a volume of 89131 shares traded. The stock had previously closed at $19.12.

The technology company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.03. The firm had revenue of $81.15 million for the quarter, compared to the consensus estimate of $79.84 million. Ooma had a return on equity of 20.52% and a net margin of 3.17%.Ooma has set its FY 2027 guidance at 1.290-1.340 EPS and its Q2 2027 guidance at 0.330-0.340 EPS.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Citigroup reaffirmed a “market perform” rating on shares of Ooma in a report on Wednesday. Benchmark reaffirmed a “buy” rating on shares of Ooma in a report on Thursday, March 5th. Lake Street Capital raised their target price on Ooma from $18.00 to $23.00 and gave the company a “buy” rating in a report on Wednesday. UBS Group set a $24.00 target price on Ooma in a report on Wednesday. Finally, B. Riley Financial reiterated a “buy” rating on shares of Ooma in a research note on Monday, May 18th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $22.33.

Insider Activity at Ooma

In other news, CFO Shigeyuki Hamamatsu sold 10,790 shares of the stock in a transaction on 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 transaction, the chief financial officer directly owned 231,128 shares in the company, valued at approximately $3,286,640.16. This represents a 4.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 9.90% of the company’s stock.

Hedge Funds Weigh In On Ooma

Several large investors have recently modified their holdings of OOMA. Hillsdale Investment Management Inc. bought a new stake in shares of Ooma in the first quarter worth $5,847,000. Nano Cap New Millennium Growth Fund L P bought a new position in Ooma during the 4th quarter worth $1,877,000. Two Sigma Investments LP lifted its holdings in Ooma by 419.6% during the 3rd quarter. Two Sigma Investments LP now owns 188,635 shares of the technology company’s stock worth $2,262,000 after buying an additional 152,328 shares during the period. Jacobs Levy Equity Management Inc. acquired a new position in Ooma during the 4th quarter worth about $1,774,000. Finally, Millennium Management LLC grew its position in shares of Ooma by 81.6% in the 1st quarter. Millennium Management LLC now owns 316,564 shares of the technology company’s stock valued at $4,144,000 after buying an additional 142,220 shares during the last quarter. Institutional investors own 80.42% of the company’s stock.

Ooma Trading Up 1.9%

The company has a market cap of $488.80 million, a price-to-earnings ratio of 55.53 and a beta of 1.20. The firm has a 50 day moving average price of $16.20 and a two-hundred day moving average price of $13.38. The company has a quick ratio of 0.70, a current ratio of 0.93 and a debt-to-equity ratio of 0.55.

About Ooma

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.