Ooma (NYSE:OOMA) Stock Gets Price Target Boost from Freedom Broker

Ooma (NYSE:OOMA) had its target price upped by equities researchers at Freedom Broker from $24.00 to $25.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has a “buy” rating on the technology company’s stock. Freedom Broker’s price objective points to a potential upside of 21.51% from the stock’s previous close.

Several other brokerages have also commented on OOMA. B. Riley Financial upped their price target on Ooma from $24.00 to $27.00 and gave the stock a “buy” rating in a research note on Thursday, August 27th. Alliance Global Partners reiterated a “buy” rating on shares of Ooma in a report on Thursday, August 27th. William Blair set a $24.00 price target on shares of Ooma in a report on Monday, August 17th. Lake Street Capital reaffirmed a “buy” rating and set a $25.00 price target on shares of Ooma in a research report on Thursday, August 27th. Finally, Citigroup reissued a “market perform” rating on shares of Ooma in a research note on Monday. Six analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $25.00.

Ooma Trading Up 0.7%

Shares of OOMA traded up $0.14 during mid-day trading on Thursday, hitting $20.57. The company had a trading volume of 176,898 shares, compared to its average volume of 326,349. Ooma has a 1-year low of $9.79 and a 1-year high of $26.19. The business’s 50-day simple moving average is $21.71 and its 200-day simple moving average is $18.80. The stock has a market cap of $567.87 million, a PE ratio of 54.15 and a beta of 1.20. The company has a quick ratio of 0.66, a current ratio of 0.95 and a debt-to-equity ratio of 0.46.

Ooma (NYSE:OOMA) last posted its quarterly earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. The company had revenue of $83.23 million for the quarter, compared to the consensus estimate of $81.72 million. Ooma had a net margin of 3.57% and a return on equity of 23.55%. Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS. Sell-side analysts forecast that Ooma will post 0.87 earnings per share for the current year.

Insider Buying and Selling at Ooma

In related news, CEO Eric B. Stang sold 10,361 shares of the firm’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $22.75, for a total transaction of $235,712.75. Following the completion of the transaction, the chief executive officer directly owned 1,189,580 shares of the company’s stock, valued at $27,062,945. This trade represents a 0.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Susan Butenhoff sold 9,000 shares of the company’s stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $22.02, for a total transaction of $198,180.00. Following the transaction, the director owned 109,483 shares in the company, valued at approximately $2,410,815.66. The trade was a 7.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 112,554 shares of company stock worth $2,518,971 over the last ninety days. Company insiders own 9.90% of the company’s stock.

Institutional Investors Weigh In On Ooma

Institutional investors have recently added to or reduced their stakes in the business. Squarepoint Ops LLC purchased a new stake in Ooma during the 2nd quarter valued at about $244,000. Susquehanna Fundamental Investments LLC purchased a new position in shares of Ooma during the second quarter valued at approximately $549,000. Susquehanna International Group LLP boosted its position in shares of Ooma by 221.3% during the second quarter. Susquehanna International Group LLP now owns 72,537 shares of the technology company’s stock valued at $1,394,000 after purchasing an additional 49,963 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Ooma during the second quarter valued at approximately $1,436,000. Finally, Man Group plc purchased a new position in shares of Ooma during the 2nd quarter worth $878,000. 80.42% of the stock is owned by hedge funds and other institutional investors.

Ooma Company Profile

Ooma, Inc is a cloud communications company that provides voice, collaboration, and related technology services to small and midsized businesses, enterprises, and residential customers. Its services are delivered primarily through internet-based platforms designed to help customers manage communications without relying on traditional on-premises phone systems.

For businesses, Ooma offers cloud phone and unified communications solutions under brands and product lines that include Ooma Office, Ooma Pro, Ooma Enterprise, and Ooma AirDial.