Ooma Inc Stock Buy Hold or Sell Recommendation

OOMA Stock  USD 13.61  0.14  1.04%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Ooma Inc is 'Hold'. Macroaxis provides Ooma buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Ooma positions.
  
Check out Ooma Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Ooma and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Ooma Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

Execute Ooma Buy or Sell Advice

The Ooma recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Ooma Inc. Macroaxis does not own or have any residual interests in Ooma Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Ooma's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell OomaBuy Ooma
Hold

Market Performance

Very WeakDetails

Volatility

Not too volatileDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Ooma Inc has a Mean Deviation of 1.53, Standard Deviation of 1.93 and Variance of 3.71
Our trade recommendations tool can cross-verify current analyst consensus on Ooma Inc and to analyze the firm potential to grow in the current economic cycle. To make sure Ooma is not overpriced, please check all Ooma Inc fundamentals, including its price to earning, net income, book value per share, as well as the relationship between the revenue and total debt . Given that Ooma Inc has a number of shares shorted of 485.12 K, we recommend you to check out Ooma Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Ooma Trading Alerts and Improvement Suggestions

Ooma Inc generated a negative expected return over the last 90 days
The company reported the previous year's revenue of 256.85 M. Net Loss for the year was (6.9 M) with profit before overhead, payroll, taxes, and interest of 156.06 M.
About 73.0% of the company shares are owned by institutional investors
Latest headline from zacks.com: Relative Price Strength A Smart Strategy Amid Market Turmoil

Ooma Returns Distribution Density

The distribution of Ooma's historical returns is an attempt to chart the uncertainty of Ooma's future price movements. The chart of the probability distribution of Ooma daily returns describes the distribution of returns around its average expected value. We use Ooma Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Ooma returns is essential to provide solid investment advice for Ooma.
Mean Return
-0.12
Value At Risk
-3.37
Potential Upside
3.31
Standard Deviation
1.93
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Ooma historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Ooma Stock Institutional Investors

Shares
Dimensional Fund Advisors, Inc.2024-12-31
285.5 K
Nuveen Asset Management, Llc2024-12-31
264.7 K
Herald Investment Management Ltd2024-12-31
260 K
Arrowstreet Capital Limited Partnership2024-12-31
253 K
Goldman Sachs Group Inc2024-12-31
237.3 K
Connor Clark & Lunn Inv Mgmt Ltd2024-12-31
229.2 K
Northern Trust Corp2024-12-31
215.6 K
Perkins Capital Management Inc2024-12-31
190.4 K
Millennium Management Llc2024-12-31
174.3 K
Blackrock Inc2024-12-31
3.8 M
Trigran Investments Inc2024-12-31
3.5 M
Note, although Ooma's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Ooma Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory(3.4M)(1.6M)(12.3M)6.3M6.6M7.0M
Change In Cash5.6M2.4M4.5M(6.6M)335K318.3K
Free Cash Flow1.2M2.5M3.6M6.1M20.2M21.2M
Depreciation4.2M4.4M9.0M11.0M10.1M10.6M
Other Non Cash Items3.2M3.0M1.4M(9.6M)5.5M5.8M
Capital Expenditures3.2M4.2M5.2M6.2M6.4M3.4M
Net Income(2.4M)(1.8M)(3.7M)(835K)(6.9M)(7.2M)
End Period Cash Flow17.3M19.7M24.1M17.5M17.9M15.3M
Investments13.2M229K(683K)(6.1M)(7.1M)(7.4M)
Change To Netincome12.5M15.5M15.7M11.8M13.6M11.3M
Change Receivables135K(637K)(2.1M)434K390.6K410.1K

Ooma Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ooma or Diversified Telecommunication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ooma's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ooma stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.02
β
Beta against Dow Jones1.00
σ
Overall volatility
1.90
Ir
Information ratio -0.01

Ooma Volatility Alert

Ooma Inc exhibits very low volatility with skewness of 0.22 and kurtosis of -0.42. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ooma's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ooma's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Ooma Fundamentals Vs Peers

Comparing Ooma's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Ooma's direct or indirect competition across all of the common fundamentals between Ooma and the related equities. This way, we can detect undervalued stocks with similar characteristics as Ooma or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Ooma's fundamental indicators could also be used in its relative valuation, which is a method of valuing Ooma by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Ooma to competition
FundamentalsOomaPeer Average
Return On Equity-0.0845-0.31
Return On Asset-0.028-0.14
Profit Margin(0.03) %(1.27) %
Operating Margin(0) %(5.51) %
Current Valuation358.05 M16.62 B
Shares Outstanding27 M571.82 M
Shares Owned By Insiders9.21 %10.09 %
Shares Owned By Institutions73.27 %39.21 %
Number Of Shares Shorted485.12 K4.71 M
Price To Earning(15.01) X28.72 X
Price To Book4.26 X9.51 X
Price To Sales1.43 X11.42 X
Revenue256.85 M9.43 B
Gross Profit156.06 M27.38 B
EBITDA(6.94 M)3.9 B
Net Income(6.9 M)570.98 M
Cash And Equivalents22.47 M2.7 B
Cash Per Share0.93 X5.01 X
Total Debt29.68 M5.32 B
Debt To Equity0.25 %48.70 %
Current Ratio1.22 X2.16 X
Book Value Per Share3.15 X1.93 K
Cash Flow From Operations26.61 M971.22 M
Short Ratio4.66 X4.00 X
Earnings Per Share(0.26) X3.12 X
Price To Earnings To Growth1.82 X4.89 X
Target Price18.3
Beta0.99-0.15
Market Capitalization367.47 M19.03 B
Total Asset159.25 M29.47 B
Retained Earnings(133.28 M)9.33 B
Working Capital17.2 M1.48 B
Current Asset69.36 M9.34 B
Note: Acquisition by Namrata Sabharwal of 24000 shares of Ooma subject to Rule 16b-3 [view details]

Ooma Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Ooma . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Ooma Buy or Sell Advice

When is the right time to buy or sell Ooma Inc? Buying financial instruments such as Ooma Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Ooma in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Emerging Markets Funds Thematic Idea Now

Emerging Markets Funds
Emerging Markets Funds Theme
Fund or Etfs that invest in markets of developing countries. The Emerging Markets Funds theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets Funds Theme or any other thematic opportunities.
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When determining whether Ooma Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ooma's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ooma Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ooma Inc Stock:
Check out Ooma Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ooma. If investors know Ooma will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ooma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.26)
Revenue Per Share
9.625
Quarterly Revenue Growth
0.055
Return On Assets
(0.03)
Return On Equity
(0.08)
The market value of Ooma Inc is measured differently than its book value, which is the value of Ooma that is recorded on the company's balance sheet. Investors also form their own opinion of Ooma's value that differs from its market value or its book value, called intrinsic value, which is Ooma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ooma's market value can be influenced by many factors that don't directly affect Ooma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ooma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ooma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ooma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.