Exploring Domo, Inc. (DOMO) Investor Profile: Who’s Buying and Why?

Who Invests in Domo, Inc. (DOMO) and Why?

Who Invests in Domo, Inc. (DOMO) and Why?

Understanding the investor landscape in Domo, Inc. (DOMO) reveals a diverse mix of participants. Each group possesses distinct motivations for engaging with the company, driven by various investment strategies.

Key Investor Types

• Retail Investors: Comprised of individual investors purchasing shares for personal accounts. As of early 2023, retail investors accounted for approximately 15% of the company's total trading volume.
• Institutional Investors: Professional investment firms and organizations that manage large pools of capital. They hold about 84% of Domo's shares, reflecting significant institutional interest.
• Hedge Funds: These funds typically engage in high-risk, high-reward strategies. Hedge funds own around 3% of the total shares and often play a pivotal role in price volatility through short-selling and leverage.

Investment Motivations

Various factors draw investors to Domo, Inc., including:

• Growth Prospects: The company's projected revenue growth rate is estimated at 20% annually, appealing to growth-oriented investors.
• Market Position: Domo's position as a leading cloud-based analytics platform contributes to its attractiveness. The global business intelligence market, which Domo operates in, is projected to reach $33 billion by 2025.
• Dividends: Although Domo does not currently pay dividends, potential for future cash returns remains a topic of interest for income-seeking investors.

Investment Strategies

Investors in Domo, Inc. often employ a variety of strategies:

• Long-Term Holding: Many institutional investors adopt a buy-and-hold strategy, capitalizing on the long-term growth potential demonstrated through recurring revenues.
• Short-Term Trading: Retail investors frequently engage in short-term trading, taking advantage of price fluctuations. The average holding period for retail investors is about 3-6 months.
• Value Investing: Some investors apply a value investing approach, assessing Domo's current trading price relative to its fundamental value. As of October 2023, Domo’s P/E ratio stands at 14.5.

Investor Behavior Overview

This breakdown illustrates the multifaceted investment profile centered around Domo, Inc., highlighting the variety of investor types, their motivations, and the strategies they employ to navigate the stock's dynamics.

Institutional Ownership and Major Shareholders of Domo, Inc. (DOMO)

Institutional Ownership and Major Shareholders of Domo, Inc. (DOMO)

As of the latest available data, various institutional investors have shown significant interest in Domo, Inc. (DOMO). Here’s a detailed overview of the largest institutional shareholders and their respective shareholdings:

Recent changes in ownership have been notable. Institutional investors have adjusted their stakes in Domo, with an overall increase in institutional ownership from 48% to 52% over the past year. This reflects a growing confidence in the company's market position and potential for growth.

The role of institutional investors in Domo's stock price and overall strategy cannot be understated. These large investors often provide not just capital but also stability and credibility. Their investment decisions can influence stock price volatility; for example, a substantial buy or sell from a major institution can lead to significant stock price movements. Moreover, having reputable institutions as shareholders often encourages other investors to participate, creating a positive feedback loop that can bolster the company's market perception.

In summary, the institutional landscape surrounding Domo, Inc. showcases a blend of support and strategic interest from top investors, who are shaping the company’s trajectory in the competitive tech environment.

Key Investors and Their Influence on Domo, Inc. (DOMO)

Key Investors and Their Impact on Domo, Inc. (DOMO) Stock

Domo, Inc. has attracted a variety of key investors, each influencing the company’s direction and stock performance significantly. Understanding their roles offers insights into the investment landscape surrounding Domo.

Notable Investors

Some of the notable investors in Domo, Inc. include:

• Wellington Management: Holds approximately 10.5% of the shares.
• BlackRock, Inc.: Owns about 8.7% of the outstanding shares.
• Kotick Capital: A significant stakeholder, with a reported ownership of around 6.1%.
• FMR LLC: Also known as Fidelity, which has around 5.4% of Domo's shares.

Investor Influence

These key investors wield considerable influence over Domo's strategic decisions:

• Wellington Management often pushes for operational efficiency and strategic realignments, leading to decisions that might impact profitability.
• BlackRock's presence typically encourages enhanced corporate governance practices and sustainability initiatives.
• Kotick Capital has been known to advocate for shareholder returns, affecting dividend policies and stock buyback programs.
• FMR LLC’s involvement can steer the company towards more innovative product developments, as they often support tech advancements.

Recent Moves

In recent months, there have been several noteworthy moves by these investors:

• Wellington Management recently increased its stake by acquiring an additional 1.5 million shares in a bid to stabilize the stock after a downturn.
• BlackRock sold approximately 300,000 shares in the last quarter, adjusting its holdings based on market trends.
• Kotick Capital initiated a push for better transparency after acquiring more shares, requesting more frequent financial disclosures.
• FMR LLC launched a campaign focusing on product innovation, increasing their shares by 400,000 in anticipation of upcoming tech launches.

Investor Impact Table

These strategic moves and influences provide a deeper understanding of how the dynamics of investor relations are shaping Domo, Inc.’s market landscape.

Market Impact and Investor Sentiment of Domo, Inc. (DOMO)

Market Impact and Investor Sentiment

The current sentiment among major shareholders towards Domo, Inc. (DOMO) has been largely neutral. Recent analyses suggest that while investor confidence fluctuates, significant shifts have not led to an overwhelmingly positive or negative outlook.

For example, as of late 2023, institutional investors owned approximately 73% of the total shares, with Vanguard Group holding about 9.32% and BlackRock at roughly 7.95%. This distribution indicates a stable base, albeit with caution reflected in the trading activity.

Recent market reactions have displayed notable volatility in response to large investor moves. In October 2023, Domo's share price saw a decrease of approximately 15% following a major hedge fund reallocation that involved selling 2.5 million shares. Conversely, following a positive earnings report in November 2023, where the company reported a revenue increase of 20% year-over-year, the stock rebounded, climbing by 10% within one week.

Analysts have expressed mixed views on the long-term prospects of Domo, particularly in light of shifting investor sentiment. The average target price set by analysts currently stands at $25, with analysts seeing potential upside of roughly 12% from the current trading levels. However, caution persists due to competitive pressures within the data analytics market, where Domo holds around 3% market share compared to larger competitors.