Domo CFO David Jolley acquires $69.9k in company stock

In a recent transaction, David Jolley, the Chief Financial Officer of DOMO, INC. (NASDAQ:DOMO), a leader in business intelligence tools and data visualization, has increased his stake in the company. On September 6, 2024, Jolley purchased 10,000 shares of Class B Common Stock at an average price of $6.9875, totaling approximately $69,875.

The transaction took place in multiple trades with prices ranging from $6.96 to $7.00 per share. Following this acquisition, Jolley's total holdings in Domo (NASDAQ:DOMO) have risen to 291,465 shares of Class B Common Stock, indicating a strong belief in the company's future.

Investors often monitor insider transactions as they can provide insights into the confidence levels of a company's executives regarding the firm's prospects. A purchase of stock by a high-ranking executive like Jolley can be interpreted as a sign of positive sentiment.

Domo, Inc. specializes in prepackaged software solutions and is known for its cloud-based operating system that helps businesses optimize their operations through data visualization and analysis. With a commitment to innovation, Domo aims to empower organizations with real-time data insights for decision-making.

The details of the transaction were disclosed in a filing with the Securities and Exchange Commission. Interested parties can obtain full information about the number of shares sold at each separate price upon request.

In other recent news, Domo, Inc. has launched a $150 million at-the-market equity offering program in collaboration with Cantor Fitzgerald & Co., according to a recent 8-K filing with the SEC. This move is seen as a strategic step to enhance Domo's financial flexibility. The company has also reported its Q2 FY2025 earnings, recording a total revenue of $78.4 million, a slight 2% decrease year-on-year, but largely surpassing its guidance. This revenue was primarily driven by subscription revenue, which constituted 90% of the total.

In response to these results, DA Davidson and TD Cowen have revised their outlooks on Domo. DA Davidson increased the price target to $8.00 from the previous $7.00, while TD Cowen raised the price target to $9.00 from the previous $8.00. Both firms have maintained a Neutral and Hold rating respectively.

In other company news, Domo's Chief Financial Officer, David Jolley, has stepped down due to health reasons, with Todd Crane taking over the role. Domo's strategic partnerships with cloud-based data warehouses, including Google (NASDAQ:GOOGL), Oracle (NYSE:ORCL), and IBM (NYSE:IBM), have been instrumental to its business strategy, fostering growth and strategic customer conversations. These recent developments reflect Domo's ongoing commitment to growth, with the company aiming to reach 50,000 users by the end of 2025 through these partnerships.

InvestingPro Insights

The recent insider purchase by David Jolley, CFO of Domo, Inc., reflects a personal vote of confidence in the company’s trajectory. This aligns with the company's focus on innovation and providing cutting-edge data visualization tools for businesses. As investors consider the implications of Jolley's increased stake, they may find the following InvestingPro Insights particularly useful in evaluating Domo's current financial health and market position.

The market capitalization of Domo stands at approximately $265.31 million, which gives a sense of the company's size and how it's valued in the market. Despite challenges, Domo's gross profit margin remains robust at 75.3%, indicating a strong ability to retain earnings after the cost of goods sold is accounted for. However, the company's revenue growth has been relatively flat, with a slight increase of 0.19% over the last twelve months as of Q2 2023.

Investors should note that Domo has not been profitable over the last twelve months, and analysts do not expect profitability this year, as indicated by the negative P/E ratio of -3.22. This is corroborated by an operating income margin of -19.87%, reflecting ongoing operating losses. Additionally, the stock's price has seen significant volatility, with a 6-month price total return of -35.08%, which could be a point of concern for potential investors.

For those looking to further explore Domo's financials and market performance, there are additional InvestingPro Tips available. For instance, the platform notes that short-term obligations exceed liquid assets, which could pose liquidity risks. Moreover, the stock has been identified as quite volatile, which may influence investment strategies.

Interested readers can find more in-depth analysis and additional InvestingPro Tips by visiting the dedicated page for Domo on InvestingPro: https://www.investing.com/pro/DOMO.

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