In a recent transaction, Domo, Inc. (NASDAQ:DOMO), a company specializing in business intelligence tools and data visualization, reported that its Chief Technology Officer and Executive Vice President of Product, Thayne Daren, sold 7,095 shares of company stock. The transaction, which took place on June 21, 2024, was executed at a price of $6.85 per share, resulting in a total value of $48,600.
According to the filing, the sale was conducted to cover the taxable obligations related to restricted stock units that vested on the previous day, June 20, 2024. Following the sale, Daren continues to hold a substantial number of shares, with 406,663 shares remaining in his direct ownership. Additionally, there is an indirect ownership through DAREN AND SHARISA THAYNE FAMILY, LLC, which holds 103,552 shares of Class B Common Stock.
Investors often monitor insider transactions like these as they can provide insights into an executive's confidence in the company's current valuation and future prospects. The details of these transactions are disclosed to the public through filings like the Form 4 submitted to the U.S. Securities and Exchange Commission.
Domo, Inc. has not made any official statement regarding the transaction at this time.
In other recent news, Domo Inc . has reported mixed first-quarter results for fiscal year 2025, with a total revenue of $80.1 million, a 1% increase year-over-year. However, billings fell short at $65.5 million due to a significant non-renewal. TD (TSX:TD) Cowen has 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. The firm anticipates an improvement in gross retention in the upcoming quarter, based on early indicators regarding Domo's net revenue retention from early consumption cohorts.
Additionally, Domo Inc. has launched a new product, Domo Samurai: The Integration Suite, designed to simplify data integration and analysis for businesses. The product has received positive feedback from customers. In other company news, Domo's shareholders have approved executive pay and elected directors. The ratification of Ernst & Young LLP as Domo's independent registered public accounting firm for the fiscal year ending January 31, 2025, was also approved by a substantial majority.
InvestingPro Insights
Domo, Inc.'s recent insider transaction comes at a time when the company's financial metrics and market performance paint a mixed picture. The company boasts an impressive gross profit margin of 75.72% for the last twelve months as of Q1 2025, underscoring the efficiency of its operations in generating profit from its revenues. This is a key strength that investors might consider when evaluating the company's fundamentals.
However, the company's stock has experienced significant volatility and a notable downturn over the last six months, with a price total return of -26.0%. This could signal investor skepticism about the company's short-term growth prospects, despite the recent positive return over the last week of 12.24%. Moreover, analysts have expressed concerns, as evidenced by the five analysts who have revised their earnings downwards for the upcoming period. This aligns with the broader sentiment that the company may not achieve profitability this year.
From a valuation standpoint, Domo's market capitalization stands at $283.64 million, and the company's P/E ratio is currently negative at -3.5, reflecting the challenges it faces in reaching profitability. With a PEG ratio of -0.15, investors may be cautious, considering the company's growth rate does not justify its P/E ratio. These metrics are crucial for investors to consider, especially in light of insider sales, which can sometimes be interpreted as a lack of confidence by executives in the company's near-term growth potential.
For those looking to delve deeper into Domo, Inc.'s performance and potential, InvestingPro offers additional insights and metrics. There are several more InvestingPro Tips available to help investors make more informed decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/DOMO.
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