Ooma (NYSE:OOMA) Shares Gap Up on Strong Earnings

Shares of Ooma, Inc. (NYSE:OOMA) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $19.27, but opened at $20.74. Ooma shares last traded at $20.3050, with a volume of 216,433 shares changing hands.

The technology company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.32 by $0.03. Ooma had a net margin of 2.36% and a return on equity of 15.60%. The business had revenue of $81.15 million during the quarter, compared to analyst estimates of $79.84 million. Ooma has set its FY 2027 guidance at 1.290-1.340 EPS and its Q2 2027 guidance at 0.330-0.340 EPS.

Ooma News Roundup

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Ooma reported fiscal Q1 EPS of $0.35, beating the $0.32 consensus, while revenue rose 25% year over year to $81.1 million and also exceeded estimates. Ooma Reports Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: The company raised its Q2 FY2027 outlook to EPS of $0.330-$0.340 and revenue of $81.6 million-$82.3 million, both above analyst expectations, signaling continued momentum. Ooma Earnings Call Transcript
• Positive Sentiment: Ooma also lifted FY2027 guidance to EPS of $1.290-$1.340 and revenue of $326.0 million-$328.5 million, ahead of consensus, which supports the stock’s stronger reaction. Ooma Reports Fiscal First Quarter 2027 Financial Results
• Neutral Sentiment: Earnings call transcripts and presentation materials were published after the results, but they mainly provide additional detail rather than a new catalyst. Ooma, Inc. (NYSE:OOMA) Q1 2027 Earnings Call Transcript

Analyst Ratings Changes

OOMA has been the subject of several recent analyst reports. Alliance Global Partners restated a “buy” rating on shares of Ooma in a research note on Wednesday. Lake Street Capital reiterated a “buy” rating on shares of Ooma in a report on Wednesday. Benchmark reissued a “buy” rating on shares of Ooma in a research report on Wednesday. B. Riley Financial restated a “buy” rating on shares of Ooma in a research note on Monday, May 18th. Finally, Citigroup reaffirmed a “market perform” rating on shares of Ooma in a research report on Wednesday. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $19.00.

Insider Buying and Selling at Ooma

In other news, CFO Shigeyuki Hamamatsu sold 10,790 shares of the business’s stock in a transaction on Friday, March 6th. The shares were sold at an average price of $14.22, for a total transaction of $153,433.80. Following the sale, the chief financial officer directly owned 231,128 shares of the company’s stock, valued at $3,286,640.16. The trade was a 4.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 9.90% of the stock is owned by company insiders.

Institutional Trading of Ooma

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. IFC & Insurance Marketing Inc. acquired a new position in shares of Ooma in the fourth quarter valued at about $34,000. Tower Research Capital LLC TRC lifted its holdings in shares of Ooma by 225.2% during the second quarter. Tower Research Capital LLC TRC now owns 3,620 shares of the technology company’s stock worth $47,000 after purchasing an additional 2,507 shares during the period. Meeder Asset Management Inc. lifted its holdings in shares of Ooma by 28.3% during the first quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company’s stock worth $49,000 after purchasing an additional 740 shares during the period. CWM LLC boosted its position in Ooma by 45.6% in the fourth quarter. CWM LLC now owns 4,400 shares of the technology company’s stock valued at $52,000 after buying an additional 1,378 shares during the last quarter. Finally, Royal Bank of Canada boosted its position in Ooma by 24.1% in the fourth quarter. Royal Bank of Canada now owns 4,466 shares of the technology company’s stock valued at $53,000 after buying an additional 867 shares during the last quarter. Institutional investors and hedge funds own 80.42% of the company’s stock.

Ooma Trading Up 4.7%

The company’s fifty day moving average is $16.13 and its two-hundred day moving average is $13.35. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.70 and a current ratio of 0.93. The company has a market cap of $555.10 million, a price-to-earnings ratio of 91.55 and a beta of 1.20.

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.