Ooma (NYSE:OOMA) Shares Gap Down – Here’s Why

Ooma, Inc. (NYSE:OOMA) shares gapped down before the market opened on Monday. The stock had previously closed at $20.48, but opened at $19.76. Ooma shares last traded at $19.62, with a volume of 12,154 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Freedom Broker increased their price objective on shares of Ooma from $24.00 to $25.00 and gave the company a “buy” rating in a report on Thursday, October 1st. UBS Group reaffirmed a “buy” rating on shares of Ooma in a research note on Thursday, August 27th. Alliance Global Partners reiterated a “buy” rating on shares of Ooma in a report on Thursday, August 27th. Zacks Research raised Ooma from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 5th. Finally, Benchmark reaffirmed a “buy” rating on shares of Ooma in a research report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Ooma presently has a consensus rating of “Buy” and an average target price of $25.00.

Ooma Trading Down 1.0%

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 stock has a market cap of $539.03 million, a price-to-earnings ratio of 51.38 and a beta of 1.23. The business’s 50 day simple moving average is $21.46 and its 200 day simple moving average is $19.32.

Ooma (NYSE:OOMA) last issued its earnings results on Wednesday, August 26th. The technology company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.33 by $0.02. The company had revenue of $83.23 million during the quarter, compared to the consensus estimate 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 expect that Ooma, Inc. will post 0.87 EPS for the current fiscal year.

Insider Buying and Selling at Ooma

In other news, CFO Shigeyuki Hamamatsu sold 4,807 shares of Ooma stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $22.33, for a total value of $107,340.31. Following the completion of the sale, the chief financial officer directly owned 179,420 shares in the company, valued at approximately $4,006,448.60. The trade was a 2.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Eric B. Stang sold 10,361 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $22.75, for a total value of $235,712.75. Following the sale, the chief executive officer directly owned 1,189,580 shares in the company, valued at approximately $27,062,945. This trade represents a 0.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 86,861 shares of company stock worth $2,005,037 in the last 90 days. Company insiders own 9.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in OOMA. BlackRock Inc. acquired a new stake in shares of Ooma in the 2nd quarter valued at approximately $69,001,000. Renaissance Technologies LLC increased its stake in shares of Ooma by 12.2% in the first 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 during the period. Hillsdale Investment Management Inc. acquired a new stake in Ooma during the 1st quarter worth approximately $5,847,000. Dimensional Fund Advisors LP grew its holdings in 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 acquiring an additional 44,097 shares during the last quarter. Finally, Globeflex Capital L P acquired a new position in Ooma in the 2nd quarter valued at approximately $4,235,000. 80.42% of the stock is owned by institutional investors.

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.