Form 4: Domo Inc. Insider Trading Activity Revealed

RPD Fund Management LLC and related entities report significant transactions in Domo Inc. Class B Common Stock, including sales and purchases, with a noted disgorgement of profits.

Summary

• RPD Fund Management LLC, RPD Opportunity Fund LP, and Ahmet H. Okumus have filed a Form 4 detailing transactions in Domo, Inc. Class B Common Stock.
• The filings cover transactions between April 13, 2026, and May 29, 2026.
• RPD Fund Management LLC reported the sale of 1,100,900 shares at $2.56 on April 13, 2026.
• On the same date, RPD Fund Management LLC purchased 924,709 shares at $2.57, resulting in a beneficial ownership of 4,437,535 shares.
• Subsequent transactions include multiple sales of Class B Common Stock at prices ranging from $3.49 to $4.12 throughout May and early June 2026.
• As of June 1, 2026, the reporting persons collectively ceased to beneficially own more than 10% of the Issuer's outstanding Class B Common Stock.
• The reporting persons will disgorge $325,052.76 in statutory "profits" to the Issuer, as per Section 16(b) of the Exchange Act.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral to slightly negative filing due to the significant sales and the disgorgement of profits, indicating potential short-term selling pressure and regulatory compliance actions, though it's a standard disclosure.

Positives

• The reporting persons are complying with Section 16(b) of the Exchange Act by agreeing to disgorge potential profits, demonstrating adherence to regulatory requirements.
• The transactions indicate active management and potential rebalancing of holdings by RPD Fund Management LLC and associated entities.

Negatives

• Significant sales of Class B Common Stock occurred throughout May and early June 2026, potentially indicating a reduction in the reporting persons' stake or confidence in the stock.
• The disgorgement of $325,052.76 in profits suggests that some transactions may have been deemed disadvantageous to the company or were subject to short-swing profit rules.

Risks

• The reporting persons may be subject to further scrutiny regarding their trading activities and beneficial ownership.
• The reduction in beneficial ownership below 10% could alter the reporting persons' influence or status as a significant shareholder.

Future Outlook

The filing does not contain forward-looking statements or guidance. It solely reports past transactions and beneficial ownership changes.

Management Comments

• RPD Fund Management LLC, RPD Opportunity Fund LP, and Ahmet H. Okumus disclaim beneficial ownership of the securities reported herein except to the extent of their pecuniary interest therein, and this report shall not be deemed to be an admission that any such person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose.
• The Reporting Persons will disgorge any statutory "profits" resulting from the transactions reported herein pursuant to Section 16(b) of the Exchange Act to the Issuer in the amount of $325,052.76, representing the maximum amount of profits for which the Reporting Persons may be liable.

Industry Context

StockSavvy.ai notes that Form 4 filings are standard disclosures for insider transactions. The activity reported by RPD Fund Management LLC and associated entities reflects typical portfolio adjustments and compliance with short-swing profit rules within the software and cloud services sector where Domo, Inc. operates.

Legal Proceedings

• The reporting persons are disgorging $325,052.76 in statutory "profits" to the Issuer pursuant to Section 16(b) of the Exchange Act, indicating a potential short-swing trading violation or a precautionary measure to avoid liability.

Stakeholder Impact

• Shareholders may view the significant sales by a major reporting entity as a negative signal, potentially impacting share price in the short term.
• The disgorgement of profits, while a compliance measure, indicates that the company is receiving funds that might otherwise have been retained by the reporting persons.

Next Steps

• The reporting persons have completed the disgorgement of profits as stated in the filing.
• Future transactions by these reporting persons will continue to be subject to Section 16 reporting requirements.

Key Dates

Recommendation

The filing details insider transactions and a profit disgorgement under Section 16(b). While significant sales occurred, the purchase on the same day and the subsequent sales at higher prices suggest active trading rather than a complete divestment. The disgorgement is a regulatory compliance action. Without further context on Domo Inc.'s financial performance or strategic direction, a 'hold' recommendation is prudent, advising investors to monitor future filings and company performance.

Keywords

Domo Inc., Form 4, Insider Trading, Class B Common Stock, RPD Fund Management LLC, RPD Opportunity Fund LP, Ahmet H. Okumus, Beneficial Ownership, Section 16(b), SEC Filing