Ooma (NYSE:OOMA) Shares Cross Below 50 Day Moving Average – Time to Sell?

Shares of Ooma, Inc. (NYSE:OOMA) passed below its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $21.53 and traded as low as $19.77. Ooma shares last traded at $19.8990, with a volume of 333,803 shares changing hands.

Wall Street Analyst Weigh In

OOMA has been the topic of several recent analyst reports. Alliance Global Partners restated a “buy” rating on shares of Ooma in a research report on Thursday, August 27th. Citigroup reissued a “market perform” rating on shares of Ooma in a report on Monday, September 28th. Zacks Research raised shares of Ooma from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 5th. Freedom Broker lifted their target price on Ooma from $24.00 to $25.00 and gave the stock a “buy” rating in a report on Thursday, October 1st. Finally, UBS Group reaffirmed a “buy” rating on shares of Ooma in a report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $25.00.

Ooma Stock Down 1.4%

The company has a market cap of $549.21 million, a P/E ratio of 52.37 and a beta of 1.23. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.66 and a current ratio of 0.95. The business’s fifty day moving average is $21.53 and its two-hundred day moving average is $19.24.

Ooma (NYSE:OOMA) last announced its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.35 earnings per share (EPS) for the quarter, topping 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 company had revenue of $83.23 million for 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 analysts predict that Ooma, Inc. will post 0.87 EPS for the current year.

Insider Transactions at Ooma

In other Ooma news, SVP Jenny C. Yeh sold 20,966 shares of the firm’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $24.05, for a total value of $504,232.30. Following the completion of the sale, the senior vice president owned 237,649 shares of the company’s stock, valued at approximately $5,715,458.45. This trade represents a 8.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 in the company, valued at $2,410,815.66. The trade was a 7.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 86,861 shares of company stock worth $2,005,037. 9.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Ooma

A number of large investors have recently bought and sold shares of the company. Legal & General Group Plc acquired a new stake in Ooma during the 2nd quarter worth about $50,000. Meeder Asset Management Inc. increased its holdings in Ooma by 28.3% in the first quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company’s stock valued at $49,000 after buying an additional 740 shares in the last quarter. Archer Investment Corp acquired a new position in shares of Ooma in the first quarter worth about $96,000. Essential Partners LLC grew its position in shares of Ooma by 8.3% during the 1st quarter. Essential Partners LLC now owns 8,197 shares of the technology company’s stock valued at $119,000 after acquiring an additional 626 shares during the period. Finally, Virtus Advisers LLC acquired a new position in Ooma in the 2nd quarter worth about $176,000. Hedge funds and other 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.