OOMA Ooma stock Story

OOMA -  USA Stock  

USD 21.50  0.36  1.65%

As many millenniums are trying to avoid communication services space, it makes sense to go over Ooma Inc a little further and try to understand its current market patterns. As expected, Ooma is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on investing in Ooma and the market returns of the last few months appear uncorrelated. The appearance of strong basic indicators of the company suggests a short-term price swing for investors of Ooma. Ooma Inc is scheduled to announce its earnings today. The next earnings report is expected on the 4th of March 2021.
Published over six months ago
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Is Ooma (NYSE:OOMA) about to rebound?
The company's average rating is Strong Buy from 5 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Ooma market sentiment investors' perception of the future value of Ooma. Let us look at a few aspects of Ooma technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Ooma Inc. In general, we focus on analyzing Ooma stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Ooma's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Ooma's intrinsic value. In addition to deriving basic predictive indicators for Ooma, we also check how macroeconomic factors affect Ooma price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Ooma's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Ooma in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Ooma. Your research has to be compared to or analyzed against Ooma's peers to derive any actionable benefits. When done correctly, Ooma's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Ooma Inc.

How does OOMA Ooma Stands against Peers?

Analyzing Ooma competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Ooma across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Ooma Competition Details

How OOMA Ooma utilizes its cash?

To perform a cash flow analysis of Ooma, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ooma is receiving and how much cash it distributes out in a given period. The Ooma cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Ooma Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 4.37 Million

Exercise or conversion by Jenny Yeh of 313 shares of Ooma subject to Rule 16b-3

Legal trades by Ooma insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
OOMA insider trading alert for exercise of stock option (right to buy) by Jenny Yeh, VP General Counsel & Sec., on 16th of June 2021. This event was filed by Ooma Inc with SEC on 2021-06-16. Statement of changes in beneficial ownership - SEC Form 4. Jenny Yeh currently serves as vice president general counsel, company secretary, director of Ooma Inc [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down

Ooma Inc has a beta of -0.1431. Let's try to break down what Ooma's beta means in this case. As returns on the market increase, Ooma returns are expected to increase less than the market. However, during the bear market, the loss on holding Ooma will be expected to be smaller as well. The beta indicator helps investors understand whether Ooma moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Ooma deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The entity reported the previous year's revenue of 161.96 M. Net Loss for the year was (10.51 M) with profit before overhead, payroll, taxes, and interest of 91.66 M.

Momentum Analysis of Ooma suggests possible reversal in December

The information ratio is down to -0.13 as of today. As of the 19th of November, Ooma holds the risk adjusted performance of (0.11), and Coefficient Of Variation of (1,043). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Ooma, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Ooma Inc, which can be compared to its competitors. Please check Ooma Inc value at risk, and the relationship between the jensen alpha and semi variance to decide if Ooma Inc is priced some-what accurately, providing market reflects its current price of 14.99 per share. Given that Ooma has jensen alpha of (0.24), we recommend you to check out Ooma Inc's recent market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas many of the other players in the telecom services industry are either recovering or due for a correction, Ooma may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 19th of November 2020, our latest 30 days buy-hold-sell advice on the company is Cautious Hold. We believe Ooma is currently undervalued with very small odds of financial turmoil for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Ooma Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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