In a recent transaction, David Jolley, the Chief Financial Officer of Domo, Inc. (NASDAQ:DOMO), sold shares of the company's Class B Common Stock. The sale, which took place on April 11, 2024, involved 12,000 shares at a price of $8.50 per share, resulting in a total transaction value of $102,000.
Following the sale, Jolley's remaining stake in the company includes 215,543 shares of Domo's Class B Common Stock. It's noteworthy that this total includes 300 shares that were acquired under the Issuer's 2018 Employee Stock Purchase Plan earlier in the month.
Investors often monitor insider transactions as they can provide insights into the company's performance and the confidence that executives have in the firm's prospects. While the reasons for such sales can vary, they are regularly reported and can be a routine part of an executive's financial planning.
Domo, Inc., headquartered in American Fork, Utah, specializes in prepackaged software services and operates under the technology sector. The company, incorporated in Delaware, has a fiscal year that ends on January 31.
The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission, which documents the sale of the securities. The form was signed by Adam Gerulat, attorney-in-fact, on April 12, 2024.
InvestingPro Insights
As Domo, Inc. (NASDAQ:DOMO) continues to navigate the competitive landscape of prepackaged software services, the recent insider transaction involving CFO David Jolley has drawn attention to the company's financial metrics and market position. According to InvestingPro data, Domo's market capitalization stands at $315.28 million, reflecting the scale of the business in the context of the broader technology sector. Despite an impressive gross profit margin of 76.34% for the last twelve months as of Q4 2024, concerns may arise from the company's short-term financial health, as highlighted by an InvestingPro Tip that short term obligations exceed liquid assets.
Investors weighing the implications of insider sales may also consider the company's performance and outlook. Domo has been trading near its 52-week low, and with a Price / Book ratio of -2.05, the market sentiment appears cautious. Analysts, as per another InvestingPro Tip, have revised their earnings downwards for the upcoming period and do not anticipate the company will be profitable this year. This is corroborated by the P/E ratio of -3.91, suggesting that investors are not expecting immediate earnings growth.
For those looking for a comprehensive analysis of Domo's financial health and future prospects, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available which can provide a deeper understanding of the company's performance and potential investment risks or opportunities. To access these tips and make informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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