Domo Sees Unusually High Options Volume (NASDAQ:DOMO)

Domo, Inc. (NASDAQ:DOMO) was the target of some unusual options trading activity on Thursday. Stock traders acquired 7,658 call options on the company. This represents an increase of 98% compared to the typical volume of 3,866 call options.

Analyst Ratings Changes

DOMO has been the subject of several recent analyst reports. Citizens Jmp decreased their price target on Domo from $3.50 to $2.25 and set a “market underperform” rating for the company in a research note on Tuesday, June 16th. Cantor Fitzgerald cut shares of Domo from an “overweight” rating to a “hold” rating and set a $4.84 price objective for the company. in a report on Thursday. TD Cowen cut shares of Domo from a “buy” rating to a “hold” rating and dropped their target price for the stock from $6.00 to $3.25 in a report on Tuesday, June 16th. Wall Street Zen downgraded shares of Domo from a “buy” rating to a “hold” rating in a research report on Sunday, March 29th. Finally, Stephens lowered shares of Domo from an “overweight” rating to an “equal weight” rating and decreased their target price for the company from $5.00 to $4.00 in a research note on Thursday. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $3.95.

Domo News Roundup

Here are the key news stories impacting Domo this week:

• Positive Sentiment: Domo agreed to sell substantially all of its AI and data business to Progress Software for $400 million, a deal that sparked a sharp after-hours rally as investors reassessed the company’s value. Domo Announces Agreement to Sell Substantially All Assets and Certain Liabilities to Progress Software for $400 Million
• Positive Sentiment: Unusual options activity showed a surge in call buying, suggesting traders were positioning for more upside ahead of or following the deal news. Why Is Domo (DOMO) Stock Rallying Over 23% After Hours Today?
• Positive Sentiment: Lake Street Capital upgraded Domo to buy and set a $5 price target, indicating additional upside from current levels despite trimming its valuation outlook. Lake Street Capital upgrade coverage
• Neutral Sentiment: Reports noted that Domo will keep its current leadership and operate as a separate entity after the transaction, leaving some uncertainty about the company’s long-term standalone strategy. Domo sells its main businesses for $400 million, leaving founder Josh James with a hoard of cash to put to work
• Negative Sentiment: Stephens downgraded Domo to equal weight and reduced its price target to $4, reflecting caution about the company’s prospects after the divestiture. Stephens downgrade coverage
• Negative Sentiment: Some analysts and commentary suggested the remaining public company may have limited prospects after shedding its core business, which could weigh on the stock over time. Domo: Sell On Limited Prospects For The Public Shell After Core Business Divestiture

Insider Activity

In other Domo news, insider Rpd Fund Management Llc sold 39,034 shares of Domo stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $4.46, for a total value of $174,091.64. Following the completion of the transaction, the insider directly owned 4,187,809 shares of the company’s stock, valued at approximately $18,677,628.14. The trade was a 0.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Tod Crane sold 68,483 shares of the company’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $2.38, for a total transaction of $162,989.54. Following the completion of the transaction, the chief financial officer owned 276,809 shares in the company, valued at approximately $658,805.42. This represents a 19.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 466,662 shares of company stock valued at $1,483,488 in the last quarter. 13.25% of the stock is owned by company insiders.

Institutional Trading of Domo

Several large investors have recently added to or reduced their stakes in DOMO. Bank of America Corp DE raised its position in Domo by 41.1% in the first quarter. Bank of America Corp DE now owns 55,048 shares of the company’s stock worth $168,000 after acquiring an additional 16,029 shares during the period. Quantinno Capital Management LP grew its position in shares of Domo by 362.4% during the 1st quarter. Quantinno Capital Management LP now owns 61,535 shares of the company’s stock valued at $188,000 after acquiring an additional 48,226 shares during the period. RPD Fund Management LLC increased its stake in shares of Domo by 27.3% in the 1st quarter. RPD Fund Management LLC now owns 4,613,726 shares of the company’s stock worth $14,118,000 after purchasing an additional 990,326 shares in the last quarter. Rangeley Capital LLC purchased a new stake in shares of Domo in the 1st quarter worth $80,000. Finally, Public Employees Retirement System of Ohio increased its stake 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 worth $139,000 after purchasing an additional 34,520 shares in the last quarter. 76.64% of the stock is currently owned by institutional investors.

Domo Stock Performance

Shares of NASDAQ:DOMO opened at $3.68 on Friday. The stock’s 50-day simple moving average is $3.33 and its two-hundred day simple moving average is $4.07. The stock has a market capitalization of $166.15 million, a price-to-earnings ratio of -2.77 and a beta of 1.79. Domo has a 52-week low of $1.84 and a 52-week high of $18.49.

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.