Domo (NASDAQ:DOMO) Given Neutral Rating at DA Davidson

Key Points

• DA Davidson reiterated its neutral rating on Domo and kept a $3.50 price target, implying sizable upside from the current share price. Other analysts remain mixed, with recent target cuts and a split between buy, hold, and sell views.
• Domo shares were down sharply in recent trading, and the stock is near its 52-week low after falling to about $2.11. The company remains small, with a market cap around $95 million and elevated volatility.
• In its latest quarter, Domo met EPS expectations at loss of $0.02 per share and revenue came in just below estimates. Management also said its strategic alternatives process is still active, fueling speculation that a deal could be announced soon.

Domo (NASDAQ:DOMO - Get Free Report)'s stock had its "neutral" rating restated by equities researchers at DA Davidson in a report issued on Tuesday,Benzinga reports. They presently have a $3.50 price target on the stock. DA Davidson's price target indicates a potential upside of 66.27% from the stock's current price.

A number of other equities analysts also recently weighed in on DOMO. Cantor Fitzgerald dropped their price target on shares of Domo from $8.00 to $5.00 and set an "overweight" rating on the stock in a research note on Tuesday. Wall Street Zen downgraded shares of Domo from a "buy" rating to a "hold" rating in a research note on Sunday, March 29th. Stephens reaffirmed an "overweight" rating on shares of Domo in a research note on Tuesday. Citizens Jmp dropped their price target on shares of Domo from $3.50 to $2.25 and set a "market underperform" rating on the stock in a research note on Tuesday. Finally, Lake Street Capital dropped their price target on shares of Domo from $13.00 to $7.00 and set a "hold" rating on the stock in a research note on Wednesday, March 11th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Domo has an average rating of "Reduce" and an average price target of $4.83.

Domo Stock Performance

Shares of NASDAQ DOMO traded down $1.16 during mid-day trading on Tuesday, reaching $2.11. The company had a trading volume of 6,182,901 shares, compared to its average volume of 1,516,276. Domo has a twelve month low of $2.00 and a twelve month high of $18.49. The stock has a market capitalization of $95.04 million, a PE ratio of -1.44 and a beta of 1.78. The stock's 50 day moving average is $3.51 and its 200-day moving average is $5.32.

Domo (NASDAQ:DOMO - Get Free Report) last posted its quarterly earnings results on Monday, June 15th. The company reported ($0.02) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.02). The company had revenue of $79.40 million during the quarter, compared to analyst estimates of $79.64 million. During the same period last year, the company posted ($0.69) earnings per share. On average, sell-side analysts anticipate that Domo will post -1.43 EPS for the current year.

Insider Buying and Selling

In other Domo news, insider Rpd Fund Management Llc sold 1,100,900 shares of the stock in a transaction on Monday, April 13th. The shares were sold at an average price of $2.56, for a total transaction of $2,818,304.00. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders have sold 1,350,626 shares of company stock worth $3,785,484 over the last 90 days. Corporate insiders own 13.25% of the company's stock.

Hedge Funds Weigh In On Domo

Several hedge funds have recently bought and sold shares of the business. Brevan Howard Capital Management LP increased its position in Domo by 3.9% during the third quarter. Brevan Howard Capital Management LP now owns 50,740 shares of the company's stock worth $804,000 after buying an additional 1,924 shares during the last quarter. Verition Fund Management LLC increased its position in Domo by 8.1% during the fourth quarter. Verition Fund Management LLC now owns 35,876 shares of the company's stock worth $302,000 after buying an additional 2,679 shares during the last quarter. Creative Planning increased its position in Domo by 23.2% during the second quarter. Creative Planning now owns 15,362 shares of the company's stock worth $215,000 after buying an additional 2,889 shares during the last quarter. Headlands Technologies LLC acquired a new position in Domo during the second quarter worth $42,000. Finally, Global Wealth Strategies & Associates acquired a new stake in shares of Domo in the fourth quarter valued at about $28,000. 76.64% of the stock is owned by institutional investors and hedge funds.

More Domo News

Here are the key news stories impacting Domo this week:

• Positive Sentiment: Domo said its board’s strategic alternatives process is still active, and management indicated a deal could be announced soon, which is fueling takeover speculation and supporting the stock. MarketWatch article
• Positive Sentiment: The company reported adjusted EPS of ($0.02), in line with Wall Street’s forecast, and gross retention improved to 86.7%, showing some underlying customer stability. Business Wire article
• Neutral Sentiment: Analysts remain split: Cantor Fitzgerald cut its price target to $5 from $8 but kept an overweight rating, while Citizens JMP lowered its target to $2.25 and reiterated an underperform view. Benzinga article
• Negative Sentiment: Revenue of $79.4 million missed estimates slightly, and several reports highlighted continued demand weakness and concerns about Domo’s ability to grow without a sale. MSN article
• Negative Sentiment: Domo also issued a going-concern warning, underscoring financial risk and why some analysts remain skeptical despite the strategic review. MarketWatch article

Domo Company Profile

Domo, Inc NASDAQ: DOMO is a cloud-based software company that specializes in business intelligence and data analytics. The company's flagship product, the Domo Business Cloud, provides organizations with an end-to-end platform to integrate, visualize and analyze data from a wide array of sources. By unifying disparate data feeds into interactive dashboards and custom applications, Domo enables real-time insights that inform decision-making across all levels of an enterprise.

Founded in 2010 by Josh James, Domo is headquartered in American Fork, Utah, and operates offices across North America, Europe and Asia Pacific.

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