Investors Purchase Large Volume of Domo Call Options (NASDAQ:DOMO)

Key Points

• Unusual call option activity drove attention to Domo, with investors buying 15,236 call options on Tuesday — about 2,115% above the average volume.
• The stock fell sharply, dropping 35.7% to $2.10 and trading near its 52-week low after heavy volume.
• Fundamentals and outlook remain mixed: Domo matched earnings expectations but slightly missed revenue estimates, while analysts cut price targets and maintain a cautious consensus rating of “Reduce.”

Domo, Inc. (NASDAQ:DOMO - Get Free Report) was the target of some unusual options trading on Tuesday. Investors purchased 15,236 call options on the company. This is an increase of approximately 2,115% compared to the average volume of 688 call options.

Domo Stock Down 35.7%

Shares of NASDAQ:DOMO traded down $1.17 during trading on Tuesday, reaching $2.10. 6,535,356 shares of the company traded hands, compared to its average volume of 1,520,028. The company's 50 day moving average is $3.51 and its two-hundred day moving average is $5.32. The firm has a market capitalization of $94.59 million, a PE ratio of -1.44 and a beta of 1.78. Domo has a 52 week low of $2.00 and a 52 week high of $18.49.

Domo (NASDAQ:DOMO - Get Free Report) last announced its quarterly earnings data on Monday, June 15th. The company reported ($0.02) earnings per share for the quarter, hitting the consensus estimate of ($0.02). The business had revenue of $79.40 million for the quarter, compared to the consensus estimate of $79.64 million. During the same quarter in the prior year, the company earned ($0.69) earnings per share. As a group, research analysts anticipate that Domo will post -1.43 EPS for the current year.

Insider Transactions at Domo

In related news, insider Rpd Fund Management Llc sold 39,034 shares of Domo stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $4.46, for a total value of $174,091.64. Following the sale, the insider owned 4,187,809 shares of the company's stock, valued at approximately $18,677,628.14. This trade represents a 0.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last quarter, insiders sold 1,350,626 shares of company stock valued at $3,785,484. 13.25% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Domo

Large investors have recently bought and sold shares of the company. Global Wealth Strategies & Associates bought a new position in Domo in the fourth quarter valued at about $28,000. Headlands Technologies LLC bought a new position in Domo in the second quarter valued at about $42,000. Rangeley Capital LLC bought a new position in Domo in the first quarter valued at about $80,000. Andina Capital Management LLC bought a new position in Domo in the fourth quarter valued at about $84,000. Finally, Oxford Asset Management LLP bought a new position in Domo in the fourth quarter valued at about $88,000. 76.64% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Cantor Fitzgerald lowered their price objective on shares of Domo from $8.00 to $5.00 and set an "overweight" rating on the stock in a research note on Tuesday. TD Cowen downgraded Domo from a "buy" rating to a "hold" rating and set a $3.25 target price for the company. in a research note on Tuesday. Stephens reiterated an "overweight" rating on shares of Domo in a research note on Tuesday. Citizens Jmp reduced their target price on Domo from $3.50 to $2.25 and set a "market underperform" rating for the company in a research note on Tuesday. Finally, Lake Street Capital reduced their target price on Domo from $13.00 to $7.00 and set a "hold" rating for the company in a research note on Wednesday, March 11th. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, Domo presently has a consensus rating of "Reduce" and a consensus price target of $4.83.

Key Headlines 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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