Ooma, Inc. (NYSE:OOMA) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Ooma, Inc. (NYSE:OOMA) has been given an average rating of “Moderate Buy” by the six brokerages that are presently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $25.00.

A number of research firms recently commented on OOMA. Benchmark reiterated a “buy” rating on shares of Ooma in a report on Monday, August 17th. Citigroup restated a “market perform” rating on shares of Ooma in a research report on Wednesday, May 27th. Lake Street Capital reaffirmed a “buy” rating and issued a $25.00 price target on shares of Ooma in a report on Thursday, August 27th. William Blair set a $24.00 price objective on Ooma in a research report on Monday, August 17th. Finally, UBS Group reissued a “buy” rating on shares of Ooma in a research note on Thursday, August 27th.

Key Stories Impacting Ooma

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Analysts raised several earnings forecasts. Lake Street Capital increased its FY2027 EPS estimate to $0.86 from $0.79 and its FY2028 estimate to $0.86 from $0.83. Benchmark lifted its FY2027 estimate to $0.89 from $0.83 and its FY2028 estimate to $1.03 from $0.98. Citizens JMP also raised its FY2027 estimate to $0.83 from $0.77 and FY2028 to $0.96 from $0.90. These revisions reinforce expectations for improving profitability at Ooma. Analyst earnings estimate reports
• Positive Sentiment: Buy ratings and a $25 price target provide support. Lake Street Capital and Benchmark maintained Buy ratings; Lake Street’s $25 target remains above the stock’s referenced trading level. Citizens JMP’s estimates imply EPS growth from the current-year consensus of $0.86 to $0.96 in FY2028 and $1.20 in FY2029, although its FY2029 estimate was modestly reduced. Ooma analyst ratings and estimates
• Neutral Sentiment: Ooma will meet institutional investors on September 23. CEO Eric Stang, CFO Shig Hamamatsu and senior corporate-development executive Chris Burgy are scheduled to hold virtual meetings during the NYSE Investor Access Technology Day. The event could offer updates on strategy, growth and artificial-intelligence initiatives, but no new guidance was announced. Ooma NYSE Investor Access Technology Day announcement
• Neutral Sentiment: Industry views on AI-enabled VoIP and unified communications are mixed. The broader assessment suggests that AI capabilities vary considerably among providers, making the article relevant to Ooma’s competitive positioning but offering no specific new product or financial information about the company. AI capabilities in VoIP and unified communications offerings
• Negative Sentiment: Some estimate reductions temper the optimism. Citizens JMP lowered its Q1 2029 EPS forecast to $0.28 from $0.29, its Q3 2028 estimate to $0.24 from $0.25, and its FY2029 estimate to $1.20 from $1.21. Lake Street also trimmed its Q4 2027 estimate to $0.19 from $0.20. These cuts indicate that the outlook is positive overall but not uniformly improving.

Ooma Price Performance

NYSE:OOMA opened at $23.30 on Friday. The business’s 50-day moving average price is $20.82 and its 200 day moving average price is $17.52. The firm has a market cap of $640.75 million, a P/E ratio of 61.32 and a beta of 1.20. Ooma has a 52-week low of $9.79 and a 52-week high of $26.19. The company has a quick ratio of 0.69, a current ratio of 0.94 and a debt-to-equity ratio of 0.50.

Ooma (NYSE:OOMA) last issued its quarterly earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.33 by $0.02. Ooma had a net margin of 3.57% and a return on equity of 23.89%. The company had revenue of $83.23 million during the quarter, compared to the consensus estimate 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. As a group, sell-side analysts predict that Ooma will post 0.87 earnings per share for the current fiscal year.

Insider Buying and Selling at Ooma

In related news, SVP Jenny Yeh sold 1,226 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $23.00, for a total value of $28,198.00. Following the completion of the transaction, the senior vice president owned 232,601 shares in the company, valued at $5,349,823. This trade represents a 0.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director William Pearce sold 3,000 shares of Ooma stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $17.98, for a total value of $53,940.00. Following the completion of the transaction, the director directly owned 181,652 shares in the company, valued at $3,266,102.96. This represents a 1.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 117,955 shares of company stock valued at $2,376,399 over the last 90 days. 9.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Legal & General Group Plc purchased a new stake in Ooma in the 2nd quarter worth about $50,000. IFC & Insurance Marketing Inc. purchased a new position in Ooma during the 4th quarter valued at about $34,000. Meeder Asset Management Inc. increased its holdings 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 purchasing an additional 740 shares during the period. Tower Research Capital LLC TRC increased its holdings in shares of Ooma by 225.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,620 shares of the technology company’s stock valued at $47,000 after purchasing an additional 2,507 shares during the period. Finally, CWM LLC lifted its position in shares of Ooma by 45.6% in the fourth quarter. CWM LLC now owns 4,400 shares of the technology company’s stock worth $52,000 after purchasing an additional 1,378 shares in the last quarter. Hedge funds and other institutional investors own 80.42% of the company’s stock.

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.