Ooma (NYSE:OOMA) Stock Price Breaks Above 200-Day Moving Average – Should You Sell?

Ooma, Inc. (NYSE:OOMA) shares crossed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $17.77 and traded as high as $18.06. Ooma shares last traded at $18.0060, with a volume of 200,033 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on OOMA shares. William Blair set a $24.00 price objective on shares of Ooma in a report on Monday, August 17th. Alliance Global Partners restated a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. B. Riley Financial boosted their price target on shares of Ooma from $24.00 to $27.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. UBS Group reaffirmed a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. Finally, Zacks Research lowered Ooma from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 3rd. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $25.00.

Ooma Stock Up 2.5%

The company has a 50 day moving average price of $20.99 and a 200-day moving average price of $17.77. The stock has a market capitalization of $496.97 million, a PE ratio of 47.39 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.

Ooma (NYSE:OOMA) last released its quarterly earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.02. The business had revenue of $83.23 million for the quarter, compared to analysts’ expectations 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. As a group, analysts forecast that Ooma, Inc. will post 0.87 earnings per share for the current fiscal year.

Insider Activity at Ooma

In other Ooma news, CAO Namrata Sabharwal sold 1,500 shares of the firm’s stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $22.16, for a total transaction of $33,240.00. Following the completion of the transaction, the chief accounting officer owned 83,455 shares of the company’s stock, valued at approximately $1,849,362.80. This trade represents a 1.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Susan Butenhoff sold 9,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $22.02, for a total value of $198,180.00. Following the transaction, 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 position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 85,104 shares of company stock valued at $1,966,383 over the last ninety days. Insiders own 9.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Man Group plc bought a new position in shares of Ooma during the second quarter valued at $878,000. Quantinno Capital Management LP boosted its holdings in shares of Ooma by 247.3% in the first quarter. Quantinno Capital Management LP now owns 70,703 shares of the technology company’s stock worth $1,029,000 after buying an additional 50,347 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Ooma in the second quarter worth approximately $2,315,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Ooma during the second quarter valued at approximately $3,746,000. Finally, Counterpoint Mutual Funds LLC bought a new position in Ooma in the 3rd quarter worth $981,000. 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.