Ooma combines strong cash conversion, solid growth, and a technical breakout with a perfect earnings beat streak, but the stock has already reached its price target and notable insider selling tempers the setup.
Thesis pillars
- Strong Revenue Growth→Stable
- Strong Cash Conversion Quality→Stable
- Technical Breakout Momentum→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 5, 2026, based on the 10-K filed Apr 3, 2026
Ooma, Inc. (OOMA) Stock Analysis
Technology · Software - Application
Sell if holding. Multiple concerning factors at $20.53: Concentration risk — Supplier: Equinix; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4).
Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; and... Read more
Sell if holding. Multiple concerning factors at $20.53: Concentration risk — Supplier: Equinix; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4). Chart setup: No clear chart pattern; technical signals are mixed. Score 6.4/10, moderate confidence.
Passes 7/8 gates (positive momentum, favorable risk/reward ratio, no SEC red flags, news events none recent, earnings proximity 39d clear, semi cycle peak clear, materials cycle peak clear). Fails on clean insider activity. Suitability: aggressive.
Recent developments
updated 2026-10-29Recent Developments — Ooma, Inc.
Latest news
- NEWS B.Riley reiterates Buy on Ooma stock, cites AirDial growth potential - Investing.com — Investing.com neutral
- NEWS Ooma Inc earnings beat by $0.02, revenue topped estimates - Investing.com Nigeria — Investing.com Nigeria positive
- NEWS Is Ooma Inc (OOMA) Overvalued After Q2 Earnings Beat? EPS at $0. - GuruFocus — GuruFocus positive
- NEWS Ooma raises FY27 adj EPS guidance to $1.35-$1.38 vs $1.31 est - scanx.trade — scanx.trade positive
- NEWS Ooma FY27 GAAP EPS guidance of $0.42-$0.45 beats $0.38 estimate - scanx.trade — scanx.trade positive
Generated 2026-10-29T13:34:03Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSupplierEquinix10-K Item 1: 'We currently serve most of our customers from three separate data center facilities located in Northern California, Texas and Virginia, where we lease space from Equinix, Inc.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Multiple concerning factors at $20.53: Concentration risk — Supplier: Equinix; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $19.35. Score 6.4/10, moderate confidence.
Analyst target: $23.32 (+13.6% upside). Prior stop was $19.35. Stop-loss: $19.35.
Concentration risk — Supplier: Equinix; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4); Sector modifier (Technology): -0.8.
Ooma, Inc. trades at a P/E of 52.6 (forward 13.7). TrendMatrix value score: 6.4/10. Verdict: Sell.
13 analysts cover OOMA with a consensus score of 4.1/5. Average price target: $27.
What does Ooma, Inc. do?Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States...
Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution. It also provides Ooma AirDial, a plain old telephone service; PureVoice HD, a residential phone services; Ooma Basic that provides unlimited personal calling within the United States; and Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis. In addition, the company offers Ooma Telo, a home communications solution to serve as the primary phone line in the home; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; and Ooma Telo LTE, which combines the Ooma Telo base station with the Ooma LTE Adapter and battery back-up. Further, it provides Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; 2600Hz provides business communication applications; Talkatone mobile app; OnSIP, an UCaaS solution; FluentStream for voice, text, mobile, and call center features, as well as supports remote/hybrid workforces; and Phone.com that provides UCaaS solutions, such as voice, video, text, specialized call handling, and desktop and mobile applications for small and medium-sized organizations. The company offers its products through direct channels, retailers, value-added resellers, technology services distributors, and other resellers, as well as online and sales representatives. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.