In a series of transactions, Daniel Daniel David III, a director of Domo, Inc. (NASDAQ:DOMO), has purchased a significant number of shares in the company. Over three separate transactions, David acquired a total of 400,000 shares of Domo's Class B Common Stock, amounting to a combined value of approximately $2.7 million.
The first purchase, dated June 18, 2024, involved 150,000 shares at a weighted average price of $6.688 per share. This was followed by another purchase of 150,000 shares on June 20, with the price slightly higher at an average of $6.8707 per share. The final transaction on June 21 saw David buying an additional 100,000 shares at an average price of $6.8366 per share.
The prices for these shares ranged from $6.58 to $7.00, indicating a strategic move by the director to increase his stake in the company at varying market prices. Following these transactions, Daniel David III's indirect ownership in Domo, managed through Twenty Acre Capital accounts, has increased significantly, although he disclaims beneficial ownership of these shares except to the extent of his pecuniary interest.
These purchases reflect a substantial investment by a key insider of Domo, Inc., a company known for its cloud-based business management suite. The transactions are detailed in a recent Form 4 filing with the Securities and Exchange Commission.
In other recent news, Domo Inc . reported mixed first-quarter results for the fiscal year 2025, with total revenue at $80.1 million, a 1% year-over-year increase, but billings fell short at $65.5 million due to a significant non-renewal. The company is transitioning its customer base to a consumption model and is exploring strategic sales options. TD (TSX:TD) Cowen maintained a Hold rating on Domo shares, following a 7% decline in the company's fourth-quarter billings, primarily attributed to the loss of a major customer.
In other developments, Domo Inc. introduced its new product, Domo Samurai: The Integration Suite, designed to simplify data integration and analysis for businesses, which has received positive feedback from customers. Shareholders recently approved executive pay and elected directors, with Ernst & Young LLP ratified as Domo's independent registered public accounting firm for the fiscal year ending January 31, 2025. These are among the recent developments at Domo Inc.
InvestingPro Insights
Amidst the insider stock purchases by Daniel David III, a look at Domo, Inc. (NASDAQ:DOMO) through the lens of InvestingPro provides additional context for investors. The company's impressive gross profit margin stands out, with the last twelve months as of Q1 2025 showing a robust 75.72%. This indicates that while Domo may be facing challenges, it retains a strong ability to control costs relative to its revenue.
Despite these purchases signaling confidence from within, it's important to note that Domo's stock price has experienced significant volatility. This is reflected in the price movements over the last year, with a 54.07% decline, and the trend has continued with a 34.21% drop year-to-date as of mid-2024. Moreover, the company's short-term obligations surpassing its liquid assets suggests a potential liquidity risk that investors should be aware of.
For those considering following in the footsteps of the director's recent investments, it's worth mentioning that analysts do not anticipate Domo will be profitable this year, and the company has not been profitable over the last twelve months. The company's market cap currently stands at 260.35 million USD, and it does not pay a dividend to shareholders, which might influence the investment strategy for income-focused portfolios.
For a deeper dive into Domo's financial health and future prospects, InvestingPro offers additional InvestingPro Tips that could guide investment decisions. There are currently 9 more tips available, which can be accessed with a special offer. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain comprehensive insights that could make all the difference in your investment strategy.
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