Lake Street Capital Upgrades Domo (NASDAQ:DOMO) to “Buy”

Domo (NASDAQ:DOMO) was upgraded by investment analysts at Lake Street Capital from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday, Marketbeat Ratings reports. The firm currently has a $5.00 price target on the stock, down from their previous price target of $7.00. Lake Street Capital’s price objective would suggest a potential upside of 35.87% from the company’s current price.

Several other equities research analysts also recently commented on DOMO. UBS Group reissued a “neutral” rating on shares of Domo in a report on Tuesday, June 16th. TD Cowen downgraded Domo from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $6.00 to $3.25 in a report on Tuesday, June 16th. Wall Street Zen lowered shares of Domo from a “buy” rating to a “hold” rating in a research note on Sunday, March 29th. Weiss Ratings raised shares of Domo from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, July 1st. Finally, 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, June 16th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $3.95.

Domo Stock Down 6.8%

Shares of DOMO opened at $3.68 on Thursday. The stock has a market cap of $166.15 million, a P/E ratio of -2.77 and a beta of 1.79. The business’s 50 day moving average price is $3.33 and its 200-day moving average price is $4.07. Domo has a 52 week low of $1.84 and a 52 week high of $18.49.

Insider Activity

In other Domo news, CEO Joshua G. James sold 96,088 shares of the firm’s stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $2.38, for a total transaction of $228,689.44. Following the sale, the chief executive officer owned 1,638,873 shares in the company, valued at approximately $3,900,517.74. This trade represents a 5.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Rpd Fund Management Llc sold 39,034 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $4.46, for a total transaction of $174,091.64. Following the sale, the insider owned 4,187,809 shares in the company, valued at approximately $18,677,628.14. The trade was a 0.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 466,662 shares of company stock valued at $1,483,488. 13.25% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DOMO. Bank of America Corp DE boosted its holdings in Domo by 41.1% in 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 raised its holdings in Domo by 362.4% during the first 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 raised its holdings in Domo by 27.3% during the first quarter. RPD Fund Management LLC now owns 4,613,726 shares of the company’s stock valued at $14,118,000 after acquiring an additional 990,326 shares during the period. Rangeley Capital LLC purchased a new position in shares of Domo in the first quarter valued at about $80,000. Finally, Public Employees Retirement System of Ohio boosted its stake in shares of Domo by 316.7% in the first quarter. Public Employees Retirement System of Ohio now owns 45,420 shares of the company’s stock worth $139,000 after acquiring an additional 34,520 shares during the period. Hedge funds and other institutional investors own 76.64% of the company’s stock.

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

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.