Eric Stang Sells 10,361 Shares of Ooma (NYSE:OOMA) Stock

Ooma, Inc. (NYSE:OOMA) CEO Eric Stang sold 10,361 shares of Ooma stock in a transaction that occurred 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 owned 1,189,580 shares in the company, valued at $27,062,945. This represents a 0.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Ooma Stock Performance

Shares of OOMA opened at $22.64 on Wednesday. The firm has a market cap of $624.73 million, a price-to-earnings ratio of 59.57 and a beta of 1.20. 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 business’s 50 day moving average is $21.37 and its two-hundred day moving average is $18.15. Ooma, Inc. has a 52-week low of $9.79 and a 52-week high of $26.19.

Ooma (NYSE:OOMA) last released its quarterly earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. The business had revenue of $83.23 million during the quarter, compared to the consensus estimate of $81.72 million. Ooma had a net margin of 3.57% and a return on equity of 23.55%. Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS. Analysts forecast that Ooma, Inc. will post 0.87 EPS for the current fiscal year.

Key Headlines Impacting Ooma

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: StarDial expands Ooma’s addressable market. Ooma said StarDial will provide affordable home-phone service in locations where traditional broadband or wired telephone infrastructure is unavailable, using Starlink satellite connectivity. The offering could help Ooma reach underserved residential customers and deepen its relationship with Starlink users, although revenue contributions and adoption rates remain uncertain. Ooma Introduces StarDial announcement
• Neutral Sentiment: Ooma’s valuation leaves limited room for disappointment. The stock is trading well above its 200-day moving average and near its 52-week high, with a price-to-earnings ratio near 60. Recent quarterly results exceeded expectations, and analysts maintain a “Moderate Buy” consensus with an average price target of $25; however, the elevated valuation means investors may look for evidence that StarDial can produce meaningful growth. Ooma analyst and market data
• Negative Sentiment: Multiple executives sold shares. CEO Eric Stang sold a combined 40,000 shares for approximately $920,000, while SVP Jenny Yeh sold 1,948 shares for about $44,800 and Chief Accounting Officer Namrata Sabharwal sold 2,481 shares for roughly $57,600. The sales were relatively small compared with the executives’ remaining holdings, so they do not necessarily signal weakening business prospects, but the concentration of insider selling could create near-term pressure on investor sentiment. Ooma executive stock sales

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. B. Riley Financial upped their target price on shares of Ooma from $24.00 to $27.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Benchmark reiterated a “buy” rating on shares of Ooma in a research note on Monday, August 17th. Citigroup reissued a “market perform” rating on shares of Ooma in a report on Wednesday, May 27th. William Blair set a $24.00 price objective on Ooma in a research note on Monday, August 17th. Finally, UBS Group reaffirmed a “buy” rating on shares of Ooma in a report on Thursday, August 27th. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $25.00.

Institutional Trading of Ooma

A number of institutional investors and hedge funds have recently modified their holdings of the business. Quantinno Capital Management LP raised its stake in Ooma by 247.3% during the first quarter. Quantinno Capital Management LP now owns 70,703 shares of the technology company’s stock worth $1,029,000 after acquiring an additional 50,347 shares during the period. Lazard Asset Management LLC acquired a new position in Ooma in the first quarter valued at approximately $1,415,000. Bard Associates Inc. acquired a new position in Ooma in the second quarter valued at approximately $558,000. Hsbc Holdings PLC grew its holdings in shares of Ooma by 107.3% during the fourth quarter. Hsbc Holdings PLC now owns 96,830 shares of the technology company’s stock valued at $1,132,000 after purchasing an additional 50,114 shares during the last quarter. Finally, North Star Investment Management Corp. acquired a new stake in shares of Ooma during the 1st quarter worth approximately $873,000. 80.42% of the stock is owned by institutional investors and hedge funds.

About Ooma

Ooma, Inc is a cloud communications company that provides voice, collaboration, and related technology services to small and midsized businesses, enterprises, and residential customers. Its services are delivered primarily through internet-based platforms designed to help customers manage communications without relying on traditional on-premises phone systems.

For businesses, Ooma offers cloud phone and unified communications solutions under brands and product lines that include Ooma Office, Ooma Pro, Ooma Enterprise, and Ooma AirDial.