Ooma (NYSE:OOMA) Raised to “Strong-Buy” at Zacks Research

Ooma (NYSE:OOMA) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Monday, Zacks reports.

A number of other research analysts have also recently commented on OOMA. William Blair set a $24.00 price target on Ooma in a research report on Monday, August 17th. Benchmark reiterated a “buy” rating on shares of Ooma in a research report on Monday, August 17th. Alliance Global Partners reissued a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. UBS Group restated a “buy” rating on shares of Ooma in a research report on Thursday, August 27th. Finally, Citigroup restated a “market perform” rating on shares of Ooma in a research report on Monday, September 28th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Buy” and an average target price of $25.00.

Ooma Price Performance

OOMA stock opened at $19.96 on Monday. The company has a market capitalization of $551.03 million, a P/E ratio of 52.54 and a beta of 1.23. The business has a 50-day simple moving average of $21.72 and a two-hundred day simple moving average of $18.99. Ooma has a 52-week low of $9.79 and a 52-week high of $26.19. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.66 and a current ratio of 0.95.

Ooma (NYSE:OOMA) last issued its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.02. Ooma had a return on equity of 23.55% and a net margin of 3.57%.The business had revenue of $83.23 million for the quarter, compared to analysts’ expectations of $81.72 million. 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 expect that Ooma will post 0.87 EPS for the current fiscal year.

Insider Buying and Selling at Ooma

In other news, SVP Jenny Yeh sold 1,747 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $23.00, for a total transaction of $40,181.00. Following the transaction, the senior vice president directly owned 222,540 shares of the company’s stock, valued at approximately $5,118,420. This trade represents a 0.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Shigeyuki Hamamatsu sold 4,807 shares of Ooma stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $22.33, for a total value of $107,340.31. Following the completion of the transaction, the chief financial officer owned 179,420 shares in the company, valued at approximately $4,006,448.60. This represents a 2.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 110,073 shares of company stock valued at $2,469,277. 9.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ooma

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in shares of Ooma in the 2nd quarter worth about $69,001,000. Renaissance Technologies LLC boosted its stake in Ooma by 12.2% during the 1st quarter. Renaissance Technologies LLC now owns 912,203 shares of the technology company’s stock valued at $13,273,000 after purchasing an additional 99,100 shares during the last quarter. Hillsdale Investment Management Inc. bought a new stake in Ooma in the 1st quarter worth about $5,847,000. Dimensional Fund Advisors LP grew its stake in shares of Ooma by 13.2% in the first quarter. Dimensional Fund Advisors LP now owns 379,007 shares of the technology company’s stock worth $5,514,000 after acquiring an additional 44,097 shares during the period. Finally, Globeflex Capital L P purchased a new position in shares of Ooma in the 2nd quarter worth $4,235,000. 80.42% of the stock is owned by hedge funds and other institutional investors.

About Ooma

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.