Possible Explanations for Why Ooma, Inc. (OOMA) Trades Today Up 3.22%

An interesting stock that came up in some of our conversations today is Ooma, Inc. (NYSE:OOMA). At current price of $11.23, the shares have already added 0.35 points (3.22% higher) from its previous close of $10.88. Should you buy or avoid them? The stock sets an active trading volume day with a reported 58373 contracts so far this session. OOMA shares had a relatively better volume day versus average trading capacity of 85.83 million shares, but with a 19.38 million float and a 1.02% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for OOMA stock indicates that the average analyst price target is $16.9 per share. This means the stock has a potential increase of 50.49% from where the OOMA share price has been trading recently which is between $10.86 and $11.12.

During the recent trading session for Ooma, Inc. (NYSE:OOMA), the company witnessed their stock rise $0.15 over a week and tumble down $-1.27 from the price 20 days ago. When compared to their established 52-week high of $16.72, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 11/28/18. The recent low of $9.85 stood for a -32.83% since 06/26/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.85 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Ooma, Inc., the two-week RSI stands at 52.28. This figure suggests that OOMA stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current OOMA readings is similarly very revealing as it has a stochastic reading of 81.69% at this stage. This figure means that OOMA share price today is being oversold.

Technical chart claims that Ooma, Inc. (OOMA) would settle between $11.05/share to $11.21/share level. However, if the stock price goes below the $10.79 mark, then the market for Ooma, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $10.69 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.12. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at BofA/Merrill lowered their recommendation on shares of OOMA from Neutral to Underperform in their opinion released on September 30. William Blair analysts bumped their rating on Ooma, Inc. (NYSE:OOMA) stock from Mkt Perform to Outperform in a separate flash note issued to investors on November 28. Analysts at Credit Suisse, made their first call for the equity with a Neutral recommendation, according to a research note that dated back to August 10.

OOMA equity has an average rating of 2.29, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 4 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 4 analysts rated Ooma, Inc. (NYSE:OOMA) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, OOMA stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 24.8. Ooma, Inc. current P/B ratio of 7.5 means it is trading at a premium against its industry’s 1.6.