Insider Activity Report: Domo (DOMO)

David Daniel, a director at Domo (DOMO), recently bought 137,000 shares. The buy increased his stake by 84 percent, and came to a total purchase price just under $1.5 million.

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  • That follows up on a 26,400 share buy the director made back in July, and two other buys earlier this year. The company’s CFO and CEO have also been buyers this year, with the CEO picking up 429,810 shares for just over $6 million in late March.

    Overall, insiders own about 6 percent of shares.

    Shares of the business intelligence software platform have shed over 40 percent in the past year.

    Revenues have been flat, but the company is still a long way from making a profit, and billings have declined in the most recent quarter, which could signal further trouble ahead.

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  • Action to take: Shares may have more downside here, but could be a contrarian buy with the big insider buying from officers and directors.

    Plus, the company is expanding its partnership with Google for cloud services, which could indicate a turnaround is underway. Investors may want to build a speculative stake here. At present, shares do not pay a dividend.

    For traders, shares are in a downtrend, but have been prone to pops higher. The November $12 calls, last going for about $0.90, could see mid-double-digit returns on a jump higher in shares before expiration.


    Disclosure: The author of this article has no position in the company mentioned here, and does not intend to trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.


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