Domo Sees Unusually Large Options Volume (NASDAQ:DOMO)

Domo, Inc. (NASDAQ:DOMO) saw some unusual options trading on Tuesday. Stock investors acquired 15,236 call options on the stock. This is an increase of approximately 2,115% compared to the average daily volume of 688 call options.

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

Analyst Upgrades and Downgrades

DOMO has been the subject of several recent analyst reports. Weiss Ratings upgraded shares of Domo from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, May 28th. 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 report on Tuesday. Stephens reiterated an “overweight” rating on shares of Domo in a research report on Tuesday. Citizens Jmp decreased 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, DA Davidson reaffirmed a “neutral” rating and set a $3.50 target price on shares of Domo in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus target price of $4.83.

Domo Price Performance

Shares of Domo stock 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. Domo has a 1-year low of $2.00 and a 1-year high of $18.49. The company has a 50 day moving average price of $3.51 and a 200-day moving average price of $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 (NASDAQ:DOMO) last released its earnings results on Monday, June 15th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.02). The company had revenue of $79.40 million for the quarter, compared to analyst estimates of $79.64 million. During the same quarter in the previous year, the firm earned ($0.69) EPS. Equities research analysts expect that Domo will post -1.43 earnings per share for the current year.

Insider Buying and Selling at Domo

In other news, insider Rpd Fund Management Llc sold 39,034 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $4.46, for a total transaction of $174,091.64. Following the completion of the sale, the insider directly owned 4,187,809 shares in the company, valued at $18,677,628.14. This represents a 0.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders sold a total of 1,350,626 shares of company stock valued at $3,785,484 over the last ninety days. Corporate insiders own 13.25% of the company’s stock.

Institutional Investors Weigh In On Domo

A number of hedge funds have recently added to or reduced their stakes in DOMO. Global Wealth Strategies & Associates acquired a new stake in Domo in the fourth quarter valued at approximately $28,000. Headlands Technologies LLC bought a new position in shares of Domo in the 2nd quarter worth $42,000. Rangeley Capital LLC acquired a new stake in Domo in the 1st quarter valued at $80,000. Andina Capital Management LLC acquired a new stake in Domo in the 4th quarter valued at $84,000. Finally, Oxford Asset Management LLP acquired a new stake in Domo in the 4th quarter valued at $88,000. Institutional investors and hedge funds own 76.64% of the company’s stock.

About Domo

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.