Ooma (NYSE:OOMA) Stock Rating Lowered by Zacks Research

Ooma (NYSE:OOMA) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, Zacks reports.

Several other equities analysts have also commented on OOMA. William Blair set a $24.00 price target on shares of Ooma in a research note on Monday, August 17th. UBS Group reissued a “buy” rating on shares of Ooma in a report on Thursday, August 27th. Alliance Global Partners restated a “buy” rating on shares of Ooma in a research report on Thursday, August 27th. Benchmark restated a “buy” rating on shares of Ooma in a report on Monday, August 17th. Finally, Citigroup reaffirmed a “market perform” rating on shares of Ooma in a research report on Monday, September 28th. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Ooma has an average rating of “Moderate Buy” and a consensus price target of $25.00.

Ooma Stock Up 1.3%

Ooma stock opened at $19.01 on Tuesday. The stock has a market cap of $524.68 million, a PE ratio of 50.03 and a beta of 1.15. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.95 and a quick ratio of 0.66. The stock’s fifty day moving average is $21.15 and its two-hundred day moving average is $17.71. Ooma has a 1-year low of $9.79 and a 1-year high of $26.19.

Ooma (NYSE:OOMA) last released 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. Ooma had a return on equity of 23.55% and a net margin of 3.57%. The business had revenue of $83.23 million during 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. On average, sell-side analysts expect that Ooma will post 0.87 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CAO Namrata Sabharwal sold 1,500 shares of the company’s stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $22.16, for a total value of $33,240.00. Following the completion of the sale, the chief accounting officer directly owned 83,455 shares of the company’s stock, valued at $1,849,362.80. This represents a 1.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Susan Butenhoff sold 9,000 shares of the company’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $22.02, for a total value of $198,180.00. Following the completion of the sale, the director directly owned 109,483 shares of the company’s stock, valued at approximately $2,410,815.66. This trade represents a 7.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 85,104 shares of company stock worth $1,966,383. Corporate insiders own 9.90% of the company’s stock.

Institutional Investors Weigh In On Ooma

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Essential Partners LLC increased its holdings in shares of Ooma by 8.3% in the 1st quarter. Essential Partners LLC now owns 8,197 shares of the technology company’s stock valued at $119,000 after acquiring an additional 626 shares during the period. Meeder Asset Management Inc. raised its position in 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 last quarter. State of Alaska Department of Revenue purchased a new stake in Ooma in the 3rd quarter valued at $26,000. USA Financial Formulas acquired a new stake in Ooma during the 3rd quarter worth $48,000. Finally, Legal & General Group Plc acquired a new stake in Ooma during the 2nd quarter worth $50,000. Hedge funds and other institutional investors own 80.42% of the company’s stock.

Ooma Company Profile

Ooma, Inc provides cloud-based communications and connected services for small and mid-sized businesses, enterprises and residential customers. Its business offerings are designed to support voice communications, collaboration and business continuity through internet-based platforms rather than traditional telephone systems.

The company’s product portfolio includes Ooma Office, a cloud-based business phone system; Ooma Office Pro, which adds enhanced communications and collaboration features; and Ooma AirDial, a cloud-based replacement for traditional analog telephone lines.