Domo Inc . (NASDAQ:DOMO) has seen significant trading activity from its founder and CEO, James Joshua G, according to the latest SEC filings. On March 21, 2024, James executed a sale of 107,000 shares of Class B Common Stock at an average price of $9.376 per share, totaling over $1 million in value. This transaction was part of a plan to cover taxable obligations related to vested restricted stock units.
The sale came just a day after the CEO acquired 35,634 shares through the vesting of restricted stock units (RSUs) on March 20, 2024. However, these shares were acquired at no cost, as they represent the right to receive shares of Class B Common Stock upon vesting, according to the footnotes in the SEC filing.
Following these transactions, James Joshua G's direct holdings in Domo Inc. have adjusted to 881,765 shares of Class B Common Stock. Additionally, the CEO has indirect holdings through various entities, including Cocolalla, LLC; the James Family Charitable Remainder Trust; and Cinnamon Birch LLC, with shares totaling 429,810, 39,300, and 10,000 respectively. His spouse also indirectly holds 2,143 shares.
Investors often monitor insider transactions as they may provide insights into the executive's view of the company's current valuation and future prospects. Domo Inc.'s stock activity by its CEO is a noteworthy event that could be of interest to current and potential shareholders.
InvestingPro Insights
Domo Inc. (NASDAQ:DOMO) has been navigating a challenging market environment, as reflected in its recent financial metrics and analyst expectations. According to InvestingPro data, Domo's market capitalization currently stands at $346.77 million, with a negative price-to-earnings (P/E) ratio of -4.53, indicating that the market is pricing the company's earnings pessimistically, in line with the fact that analysts do not anticipate the company will be profitable this year.
Despite the CEO's recent stock transactions, an InvestingPro Tip suggests that Domo's stock price movements are quite volatile, which could be a point of consideration for investors thinking about the timing of their investments. Additionally, the company's gross profit margin is impressive at 76.34%, showcasing the company's ability to maintain profitability at the operational level despite broader financial challenges.
It's also noteworthy that three analysts have revised their earnings downwards for the upcoming period, which may influence investor sentiment. For those seeking more comprehensive analysis and additional insights, there are 6 more InvestingPro Tips available for Domo, which can be accessed by visiting InvestingPro. Investors interested in a deeper dive into the company's financials and future prospects can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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