Ooma (NYSE:OOMA) Stock Rating Cut to “Hold” at Zacks Research

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

OOMA has been the subject of a number of other reports. UBS Group reiterated a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. B. Riley Financial boosted their target price on shares of Ooma from $24.00 to $27.00 and gave the stock a “buy” rating in a research report on Thursday, August 27th. Alliance Global Partners restated a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. Freedom Broker raised their price target on shares of Ooma from $24.00 to $25.00 and gave the company a “buy” rating in a report on Thursday, October 1st. Finally, Benchmark restated a “buy” rating on shares of Ooma in a report on Monday, August 17th. Six investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $25.00.

Ooma Stock Up 1.3%

OOMA opened at $19.01 on Tuesday. The company has a market capitalization 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. Ooma has a fifty-two week low of $9.79 and a fifty-two week high of $26.19. The business has a 50-day moving average of $21.15 and a 200-day moving average of $17.71.

Ooma (NYSE:OOMA) last announced its quarterly earnings results on Wednesday, August 26th. The technology company reported $0.35 EPS for the quarter, beating 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. Equities research analysts forecast that Ooma will post 0.87 EPS for the current fiscal year.

Insider Activity

In other Ooma news, SVP Jenny C. Yeh sold 20,966 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $24.05, for a total transaction of $504,232.30. Following the completion of the sale, the senior vice president directly owned 237,649 shares in the company, valued at $5,715,458.45. This represents a 8.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Namrata Sabharwal sold 2,481 shares of the firm’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $23.20, for a total value of $57,559.20. Following the completion of the sale, the chief accounting officer directly owned 83,927 shares in the company, valued at approximately $1,947,106.40. This represents a 2.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 85,104 shares of company stock worth $1,966,383. Insiders own 9.90% of the company’s stock.

Hedge Funds Weigh In On Ooma

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in shares of Ooma in the second quarter valued at approximately $69,001,000. Hillsdale Investment Management Inc. bought a new stake in Ooma in the first quarter valued at about $5,847,000. Globeflex Capital L P acquired a new position in shares of Ooma in the 2nd quarter worth approximately $4,235,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Ooma during the second quarter worth $3,746,000. Finally, AWM Investment Company Inc. bought a new position in Ooma during the 2nd quarter valued at about $3,341,000. 80.42% of the stock is currently owned by institutional investors.

About Ooma

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.