Insider Selling: Ooma (NYSE:OOMA) CFO Sells $107,340.31 in Stock

Ooma, Inc. (NYSE:OOMA) CFO Shigeyuki Hamamatsu sold 4,807 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $22.33, for a total value of $107,340.31. Following the sale, the chief financial officer directly owned 179,420 shares of the company’s stock, valued at $4,006,448.60. This represents a 2.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Ooma Price Performance

OOMA opened at $23.21 on Friday. The business has a fifty day moving average of $20.92 and a 200 day moving average of $17.56. The stock has a market cap of $638.27 million, a P/E ratio of 61.08 and a beta of 1.20. The company has a quick ratio of 0.69, a current ratio of 0.94 and a debt-to-equity ratio of 0.50. Ooma, Inc. has a 52-week low of $9.79 and a 52-week high of $26.19.

Ooma (NYSE:OOMA) last released its 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. Ooma had a return on equity of 23.89% and a net margin of 3.57%.The business had revenue of $83.23 million for the quarter, compared to analyst estimates 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. As a group, sell-side analysts anticipate that Ooma, Inc. will post 0.87 EPS for the current year.

Institutional Investors Weigh In On Ooma

Several large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Ooma during the second quarter valued at approximately $69,001,000. Hillsdale Investment Management Inc. bought a new position in Ooma in the first quarter worth approximately $5,847,000. Globeflex Capital L P purchased a new stake in Ooma during the second quarter worth $4,235,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Ooma during the second quarter worth $3,746,000. Finally, AWM Investment Company Inc. bought a new stake in Ooma during the 2nd quarter valued at $3,341,000. Institutional investors own 80.42% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on OOMA. B. Riley Financial boosted their price objective 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. Lake Street Capital reaffirmed a “buy” rating and set a $25.00 target price on shares of Ooma in a research report on Thursday, August 27th. Alliance Global Partners reaffirmed a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. Citigroup reiterated a “market perform” rating on shares of Ooma in a report on Wednesday, May 27th. Finally, Benchmark reissued a “buy” rating on shares of Ooma in a research note on Monday, August 17th. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $25.00.

Trending Headlines about Ooma

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Ooma’s fiscal second-quarter results provided the strongest bullish catalyst. Revenue increased 25% year over year to $83.2 million, business subscription and services revenue grew 38%, and adjusted EBITDA rose 74% to $12.4 million. Earnings of $0.35 per share also exceeded the $0.33 analyst consensus, helped by demand created by the ongoing retirement of copper phone networks. Ooma Rides a Phone Line Extinction Into Faster Growth
• Positive Sentiment: Analyst revisions following the earnings report were broadly favorable. Lake Street Capital raised its fiscal 2027 EPS forecast to $0.86 from $0.79 and kept a Buy rating with a $25 price target. Benchmark increased its fiscal 2027 and 2028 estimates to $0.89 and $1.03, respectively, while Citizens JMP lifted its fiscal 2028 forecast to $0.96. These revisions support expectations for continued earnings growth.
• Neutral Sentiment: Analyst estimates were not uniformly positive: Citizens JMP made several small quarterly and long-term reductions while increasing other forecasts. The changes suggest improving but uneven expectations rather than a decisive shift in consensus.
• Neutral Sentiment: Commentary on artificial intelligence features in VoIP and unified communications produced mixed ratings, leaving the potential effect on Ooma’s competitive position unclear. AI Capabilities in VoIP and UC Offerings
• Negative Sentiment: CFO Shigeyuki Hamamatsu sold approximately $107,000 of shares, while SVP Jenny Yeh sold about $28,000. Both executives retained substantial positions, so the transactions are relatively small, but insider selling can weigh on sentiment.
• Negative Sentiment: Valuation remains a risk after the stock’s strong run: Ooma trades at roughly 61 times earnings and near its 12-month high. That premium leaves the shares sensitive to any slowdown in growth or disappointment in future guidance.

Ooma Company Profile

Ooma, Inc, headquartered in Sunnyvale, California, is a leading provider of communication services for residential and business customers. Since its founding in 2004, Ooma has built a cloud-based platform that leverages Voice over Internet Protocol (VoIP) technology to deliver voice, video and data services over broadband networks. The company went public on the New York Stock Exchange in 2015 under the ticker OOMA and has continued to expand its service portfolio to meet evolving customer demands.

For residential users, Ooma offers an all-in-one home phone service that includes its flagship Telo device, mobile and web applications, and optional smart home security features.