Domo (NASDAQ:DOMO) stock rose about 4% in yesterday’s extended trade and another 3% at the time of writing after one of the company’s Directors disclosed his purchase of DOMO shares. Importantly, the insider buy was undertaken after the release of second-quarter results on August 25. It is reasonable to expect that DOMO’s strong quarterly performance might have helped boost his confidence in the stock.
Domo is an American cloud software company that specializes in business intelligence tools and data visualization.
According to the SEC filing, Daniel Daniel David III bought 137,000 shares of DOMO stock at an average price of $10.93 per share on August 28 and August 29. The total value of the transaction stands at $1.5 million. Furthermore, as a result of the recent transaction, he now owns DOMO shares worth $3.3 million.
Overall, TipRanks’ Insider Trading Activity tool shows that insiders are currently neutral on DOMO stock, as corporate insiders have bought DOMO stock worth $933,900 in the last three months.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Domo a Good Stock to Buy?
Following the Q2 release, two Wall Street analysts reiterated their Buy rating on DOMO stock, while two maintained a Hold rating. TD Cowen analyst Derrick Wood downgraded the stock’s rating to Hold from Buy and lowered the price target to $14 from $20.
The analyst believes that challenging macro conditions are impacting Domo’s pipeline conversion and renewal capacity. Also, Wood believes the company is facing tough competition from Microsoft (MSFT).
On TipRanks, DOMO stock has a Moderate Buy consensus rating based on two Buys and two Holds. The average stock price target of $17.25 implies 62.7% upside potential. Shares have tanked by 24.3% so far in 2023.
