Ooma (NYSE:OOMA) Stock Price Down 6.8% – Here’s What Happened

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

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Freedom Broker increased their price target on shares of Ooma from $24.00 to $25.00 and gave the stock a “buy” rating in a report on Thursday, October 1st. Benchmark reiterated a “buy” rating on shares of Ooma in a research report on Monday, August 17th. Citigroup reiterated a “market perform” rating on shares of Ooma in a report on Monday, September 28th. B. Riley Financial upped their price objective on Ooma from $24.00 to $27.00 and gave the stock a “buy” rating in a research report on Thursday, August 27th. Finally, Zacks Research upgraded shares of Ooma from a “hold” rating to a “strong-buy” rating in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $25.00.

Ooma Price Performance

The company has a current ratio of 0.95, a quick ratio of 0.66 and a debt-to-equity ratio of 0.46. The firm has a market cap of $552.14 million, a PE ratio of 52.63 and a beta of 1.23. The company has a 50 day moving average price of $21.68 and a 200 day moving average price of $19.03.

Ooma (NYSE:OOMA) last released 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 net margin of 3.57% and a return on equity of 23.55%. 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. On average, sell-side analysts expect that Ooma, Inc. will post 0.87 EPS for the current year.

Insiders Place Their Bets

In related news, Director Susan Butenhoff sold 9,000 shares of the company’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 transaction of $198,180.00. Following the transaction, the director owned 109,483 shares of the company’s stock, valued at approximately $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 at the SEC website. Also, SVP Jenny Yeh sold 20,966 shares of Ooma stock in a transaction that occurred on Thursday, August 27th. The stock was 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 of the company’s stock, valued at $5,715,458.45. The trade was a 8.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 110,073 shares of company stock valued at $2,469,277. 9.90% of the stock is currently owned by insiders.

Institutional Trading of Ooma

Hedge funds have recently added to or reduced their stakes in the business. Meeder Asset Management Inc. raised its position in shares of Ooma by 28.3% during the 1st quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company’s stock worth $49,000 after buying an additional 740 shares in the last quarter. Legal & General Group Plc acquired a new stake in shares of Ooma during the second quarter worth $50,000. Archer Investment Corp purchased a new stake in shares of Ooma during the first quarter valued at $96,000. Essential Partners LLC increased its stake in Ooma by 8.3% in the 1st quarter. Essential Partners LLC now owns 8,197 shares of the technology company’s stock worth $119,000 after purchasing an additional 626 shares in the last quarter. Finally, Virtus Advisers LLC acquired a new stake in Ooma during the 2nd quarter worth about $176,000. 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.