Domo, Inc.'s (NASDAQ:DOMO) Chief Financial Officer, David R. Jolley, recently sold company stock valued at approximately $217,766. The transactions, which occurred on March 21, 2024, were part of a planned sale to cover tax obligations related to vested restricted stock units (RSUs).
The sold shares of Class B Common Stock were traded at weighted average prices ranging from $9.33 to $9.39 per share. The total number of shares disposed of by the CFO was 23,338. This sale was reportedly intended to satisfy the taxable income due on the RSUs that vested on March 20, 2024.
In addition to the sale, Jolley acquired 20,581 RSUs of Class B Common Stock, which represent the right to receive one share of Domo's Class B Common Stock per unit upon vesting. However, these RSUs were granted with a value of $0, as they are subject to a vesting schedule and may be canceled if Jolley ceases to be a service provider for Domo.
Following the sale, Jolley's ownership in the company stands at 227,243 shares of Class B Common Stock. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, dated March 22, 2024.
Investors often monitor insider transactions as they can provide insights into executives' confidence in the company's performance and outlook. However, it is not uncommon for executives to sell shares to manage personal financial matters, such as tax obligations associated with vested stock awards.
InvestingPro Insights
Domo, Inc. (NASDAQ:DOMO) CFO David R. Jolley's recent stock sale coincides with some notable financial metrics and analyst insights that investors may find pertinent. According to InvestingPro data, Domo's market capitalization stands at $346.77 million, reflecting the company's current valuation in the market. Additionally, the company's gross profit margin over the last twelve months as of Q4 2024 is remarkably high at 76.34%, indicating a strong ability to retain a significant portion of revenue after the cost of goods sold is accounted for.
However, it's important to consider that analysts have flagged some concerns, as reflected in the InvestingPro Tips. Three analysts have revised their earnings projections downwards for the upcoming period, which could suggest that they expect Domo's financial performance to face challenges. Moreover, Domo's stock price movements have been quite volatile, which may influence investment decisions for those with lower risk tolerance.
For investors seeking a deeper analysis of Domo, Inc., there are additional InvestingPro Tips available that delve into aspects such as the company's profitability outlook and its ability to meet short-term obligations. The platform offers a comprehensive set of 7 additional tips, which can be accessed by visiting InvestingPro. To enhance your experience, use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
It's worth noting that Domo does not pay a dividend to shareholders, which might influence the investment strategy for those who prioritize income-generating stocks. The provided insights can help investors weigh the company's growth potential against the risks identified by analysts, in the context of the CFO's recent stock sale and the broader financial landscape of the company.
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