Ooma (NYSE:OOMA) Stock Price Down 6.8% – Time to Sell?

Shares of Ooma, Inc. (NYSE:OOMA) were down 6.8% during mid-day trading on Tuesday. The company traded as low as $19.69 and last traded at $19.5650. Approximately 360,571 shares changed hands during mid-day trading, an increase of 10% from the average daily volume of 328,935 shares. The stock had previously closed at $21.00.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Lake Street Capital restated a “buy” rating and set a $25.00 price target on shares of Ooma in a report on Thursday, August 27th. B. Riley Financial raised their price target on Ooma from $24.00 to $27.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Benchmark reaffirmed a “buy” rating on shares of Ooma in a report on Monday, August 17th. Citigroup reaffirmed a “market perform” rating on shares of Ooma in a research report on Monday, September 28th. Finally, UBS Group reissued a “buy” rating on shares of Ooma in a report on Thursday, August 27th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Ooma has an average rating of “Moderate Buy” and a consensus target price of $25.00.

Ooma Stock Down 6.8%

The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.66 and a current ratio of 0.95. The stock has a market cap of $539.99 million, a price-to-earnings ratio of 51.49 and a beta of 1.23. The firm’s 50-day simple moving average is $21.76 and its two-hundred day simple moving average is $18.95.

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

Insider Transactions at Ooma

In related news, CEO Eric Stang sold 29,639 shares of the business’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $23.08, for a total value of $684,068.12. Following the sale, the chief executive officer directly owned 1,199,941 shares of the company’s stock, valued at approximately $27,694,638.28. The trade was a 2.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Jenny Yeh sold 20,966 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $24.05, for a total value of $504,232.30. Following the transaction, the senior vice president owned 237,649 shares of the company’s stock, valued at approximately $5,715,458.45. The trade was a 8.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 110,073 shares of company stock valued at $2,469,277. Insiders own 9.90% of the company’s stock.

Hedge Funds Weigh In On Ooma

A number of hedge funds have recently bought and sold shares of the business. Legal & General Group Plc bought a new stake in shares of Ooma during the 2nd quarter worth approximately $50,000. Meeder Asset Management Inc. lifted its stake in shares of Ooma by 28.3% in the first quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company’s stock worth $49,000 after acquiring an additional 740 shares during the period. Archer Investment Corp bought a new stake in shares of Ooma in the 1st quarter valued at $96,000. Essential Partners LLC grew its holdings in Ooma by 8.3% during the 1st quarter. Essential Partners LLC now owns 8,197 shares of the technology company’s stock worth $119,000 after acquiring an additional 626 shares during the period. Finally, Virtus Advisers LLC acquired a new stake in Ooma during the second quarter worth approximately $176,000. 80.42% of the stock is owned by 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.