Ooma (NYSE:OOMA) Stock Falls 6.8% – Should You Sell?

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

Wall Street Analyst Weigh In

A number of brokerages have issued reports on OOMA. Lake Street Capital reaffirmed a “buy” rating and issued a $25.00 price objective on shares of Ooma in a research report on Thursday, August 27th. Citigroup reiterated a “market perform” rating on shares of Ooma in a research note on Monday, September 28th. UBS Group reaffirmed a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. Freedom Broker lifted their price target on Ooma from $24.00 to $25.00 and gave the company a “buy” rating in a research report on Thursday, October 1st. Finally, William Blair set a $24.00 price objective on Ooma in a research report on Monday, August 17th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, Ooma has a consensus rating of “Moderate Buy” and a consensus target price of $25.00.

Ooma Stock Down 6.8%

The company has a quick ratio of 0.66, a current ratio of 0.95 and a debt-to-equity ratio of 0.46. The company has a 50-day moving average of $21.76 and a two-hundred day moving average of $18.95. The company has a market capitalization of $539.99 million, a P/E ratio of 51.49 and a beta of 1.23.

Ooma (NYSE:OOMA) last posted its quarterly earnings data 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. The company had revenue of $83.23 million during the quarter, compared to analyst estimates 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, research analysts predict that Ooma, Inc. will post 0.87 EPS for the current year.

Insider Activity

In other Ooma news, Director Susan Butenhoff sold 9,000 shares of the company’s stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $22.02, for a total value of $198,180.00. Following the completion of the sale, the director owned 109,483 shares in the company, valued at $2,410,815.66. This represents a 7.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Shigeyuki Hamamatsu sold 4,807 shares of the firm’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $22.33, for a total transaction of $107,340.31. Following the sale, the chief financial officer owned 179,420 shares in the company, valued at $4,006,448.60. The trade was a 2.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 110,073 shares of company stock worth $2,469,277. Insiders own 9.90% of the company’s stock.

Hedge Funds Weigh In On Ooma

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

Ooma Company Profile

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.