Domo (NASDAQ:DOMO) Receives "Overweight" Rating from Stephens

Key Points

• Stephens reaffirmed an “overweight” rating on Domo, even as several other firms trimmed price targets or downgraded the stock, leaving analysts broadly split on the name.
• Domo’s shares were trading sharply lower, with the stock opening at $2.13 and down 34.8%, reflecting weak sentiment and a market cap of about $96 million.
• The company’s latest earnings were mixed: EPS met expectations at -$0.02, but revenue of $79.4 million came in slightly below estimates, while management’s strategic alternatives review remains active and could lead to a deal soon.

Domo (NASDAQ:DOMO - Get Free Report)'s stock had its "overweight" rating reaffirmed by Stephens in a report issued on Tuesday,Benzinga reports.

DOMO has been the topic of several other reports. TD Cowen lowered Domo from a "buy" rating to a "hold" rating and set a $3.25 price objective on the stock. in a research note on Tuesday. Cantor Fitzgerald decreased their price objective on shares of Domo from $8.00 to $5.00 and set an "overweight" rating for the company in a research note on Tuesday. DA Davidson dropped their price objective on shares of Domo from $10.00 to $6.00 and set a "neutral" rating for the company in a research report on Wednesday, March 11th. Wall Street Zen lowered shares of Domo from a "buy" rating to a "hold" rating in a report on Sunday, March 29th. Finally, Lake Street Capital decreased their price target on Domo from $13.00 to $7.00 and set a "hold" rating for the company in a report on Wednesday, March 11th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, Domo has an average rating of "Reduce" and an average target price of $5.25.

Domo Trading Down 34.8%

DOMO stock opened at $2.13 on Tuesday. Domo has a 52 week low of $2.39 and a 52 week high of $18.49. The company has a market cap of $95.99 million, a P/E ratio of -1.41 and a beta of 1.78. The company's 50-day moving average price is $3.51 and its 200 day moving average price is $5.32.

Domo (NASDAQ:DOMO - Get Free Report) last released its quarterly earnings results on Monday, June 15th. The company reported ($0.02) EPS for the quarter, meeting the consensus estimate of ($0.02). The business had revenue of $79.40 million during the quarter, compared to analyst estimates of $79.64 million. During the same quarter in the prior year, the company earned ($0.69) earnings per share. On average, equities research analysts expect that Domo will post -1.43 earnings per share for the current year.

Insider Activity

In other Domo news, insider Rpd Fund Management Llc sold 39,034 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $4.46, for a total value of $174,091.64. Following the transaction, the insider directly owned 4,187,809 shares of the company's stock, valued at $18,677,628.14. This represents a 0.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last three months, insiders have sold 1,350,626 shares of company stock worth $3,785,484. Company insiders own 13.25% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Bank of America Corp DE lifted its position in shares of Domo by 41.1% during the 1st quarter. Bank of America Corp DE now owns 55,048 shares of the company's stock worth $168,000 after buying an additional 16,029 shares during the period. Quantinno Capital Management LP boosted its stake in shares of Domo by 362.4% in the 1st quarter. Quantinno Capital Management LP now owns 61,535 shares of the company's stock valued at $188,000 after purchasing an additional 48,226 shares during the last quarter. RPD Fund Management LLC grew its holdings in Domo by 27.3% during the 1st quarter. RPD Fund Management LLC now owns 4,613,726 shares of the company's stock worth $14,118,000 after acquiring an additional 990,326 shares during the period. Rangeley Capital LLC bought a new stake in Domo in the first quarter valued at about $80,000. Finally, Public Employees Retirement System of Ohio raised its position in shares of Domo by 316.7% in the 1st quarter. Public Employees Retirement System of Ohio now owns 45,420 shares of the company's stock valued at $139,000 after acquiring an additional 34,520 shares during the period. Institutional investors and hedge funds own 76.64% of the company's stock.

Key Stories Impacting Domo

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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