DOMO

Domo ($DOMO) CEO and Director Signal Strong Confidence with $1.27 Million Stock Purchase Following 20% Share Price Drop

04/05/2025 01:41

Key executives at cloud-based business intelligence platform provider Domo Inc ($DOMO) have made significant stock purchases following a recent sharp decline in the company's share price. On April 4, 2025, CEO Joshua James acquired 77,300 shares at an average price of $6.50 per share, representing an investment of approximately $502,000. On the same day, Director Daniel Daniel David III purchased 120,000 shares at an average price of $6.44 per share, amounting to roughly $772,000. Notably, these purchases occurred immediately after $DOMO's stock had fallen by about 20% from late March to early April. Domo's stock had been steadily climbing throughout the latter half of 2024, reaching approximately $10 by early December before plummeting after its December 6 earnings announcement. The stock subsequently recovered to around $9 in early 2025 but began declining again in late March, falling to the $6.60 range by early April. This isn't the first time Domo's executives have made substantial purchases. Director Daniel previously bought a total of 400,000 shares across three days in June 2024, investing approximately $2.7 million. Following that purchase, $DOMO's stock rose from $6.60 to $7.70. Additionally, CFO David Jolley acquired 10,000 shares at $6.99 in September 2024 after a stock price decline. From a financial perspective, Domo continues to struggle with profitability. For fiscal year 2025 (ended January 31, 2025), the company reported revenue of $317.0 million but posted a GAAP net loss of $81.9 million, or $2.13 per share. However, recent quarterly results show some positive signs with losses coming in below expectations. In the quarter ended January 31, 2025, Domo recorded an adjusted loss of 5 cents per share, significantly better than the 16 cents loss analysts had predicted. Revenue was $78.77 million, representing a 1.8% year-over-year decrease but slightly exceeding analyst estimates of $78.00 million. Domo has also been making efforts to expand its business. In early April, the company launched a real-time and year-ahead weather-driven sales forecasting service in collaboration with Weather Trends International. This service helps businesses integrate weather patterns into their decision-making processes. Wall Street analysts currently maintain a largely neutral stance on Domo. According to recent reports, the consensus rating is 'hold,' with a price target of $9.50, which is above the current trading price. Insider buying is often interpreted as a strong signal that executives have confidence in the company's value and future prospects. The CEO's substantial purchase is particularly noteworthy. However, investors should also consider risk factors including Domo's ongoing profitability challenges, high volatility as a small-cap stock (market capitalization of approximately $300 million), and intense competition in the cloud software market. Domo's stock has fluctuated between $6.11 and $10.15 over the past year and currently trades near the middle of that 52-week range. Looking ahead, the company's guidance for fiscal year 2026 projects revenue between $310.0 million and $318.0 million, suggesting relatively flat growth.

You can receive notifications when news is published.