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

You've seen Domo, Inc. (DOMO) stock make a move-up roughly 45.87% over the last year to a price of about $12.37 per share as of November 2025-and you're defintely wondering who is driving that momentum and why they're buying into a company that reported a full-year fiscal 2025 GAAP net loss of $81.9 million. The quick answer is that the big money is already there; institutional investors, including giants like Vanguard Group Inc. and BlackRock, Inc., collectively own over 72.51% of the float, signaling a professional conviction that the turnaround is real. This isn't just a speculative bet, but a calculated play on their shift to a consumption-based pricing model, which now accounts for 55% of their Annual Recurring Revenue (ARR) and helped them post a surprise Q2 fiscal 2026 EPS of $0.02, crushing the analyst consensus of -$0.21. Are these institutional buyers seeing a durable, profitable growth engine in their AI and data product platform that the market hasn't fully priced in yet? Let's dig into the 13F filings and the strategic pivot that has Wall Street's biggest players accumulating shares despite the historical losses.

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

You're looking at Domo, Inc. (DOMO) and trying to figure out if the big money agrees with your thesis. The short answer is yes, they do, but their reasons are shifting from pure growth to a focus on profitability and the AI-driven consumption model. Institutional investors, the giants like Vanguard Group Inc. and BlackRock, Inc., own the majority of the company, signaling a baseline level of confidence, but the active hedge funds are the ones betting on a near-term inflection point.

Domo's investor base is defintely top-heavy with professional money, meaning the stock price is highly sensitive to their collective actions. Here's the quick math on who owns the company as of late 2025:

• Institutional Investors: Approximately 63% of shares outstanding.
• Insiders (Management and Directors): A significant 17% stake, including CEO Joshua James.
• General Public (Retail): Holds about 13% of the stock.

This high institutional ownership, which is well over half the company, means you need to pay attention to their trading patterns. When an index fund like Vanguard Group Inc. holds 12% and BlackRock, Inc. holds 7.7%, they aren't looking for a quick flip; they are passive, long-term holders whose positions are tied to the company's inclusion in major market indices.

Investment Motivations: The AI-Driven Inflection Point

The core motivation for new investment in Domo, Inc. is the company's pivot to a more efficient, consumption-based model, plus their positioning in the exploding AI and data products space. This isn't just a story about topline growth anymore; it's about a path to sustainable, profitable scale.

The shift to consumption-based contracts is a major signal to the market. Honesty, that's why the active funds are interested. Management reports that consumption-based arrangements now account for 55% of Annual Recurring Revenue (ARR). This model aligns revenue directly with customer value, and it's a better predictor of durable, long-term demand. The proof is in the backlog: Subscription Remaining Performance Obligations (RPO) expected beyond twelve months grew 14% year-over-year as of the Q3 fiscal year 2025 results.

Also, the focus on AI innovation is paying off. Domo is an AI and Data Products platform, and its solutions are becoming an 'anchor technology' in customer data stacks. This strategic focus is what's driving the positive earnings surprises, like the Q2 fiscal year 2026 EPS of $0.02, which beat consensus estimates. The market is rewarding efficiency and a clear product-market fit in a high-growth category.

Investment Strategies: From Passive to Value-to-Growth

The investor base employs a mix of strategies, but the most interesting action comes from the active managers looking to capitalize on Domo's improving fundamentals. You see three main strategies at play:

• Long-Term Passive Holding: This is the strategy of the massive index funds like Vanguard and BlackRock. They hold Domo because of its market capitalization and inclusion in their broad-market funds, providing a stable floor for a significant portion of the stock.
• Growth and Value-Oriented Investing: Active funds like Portolan Capital Management LLC, a significant institutional holder, employ a fundamental, research-driven approach. They focus on small- and mid-cap companies like Domo that are at an 'inflection point'. They are looking for companies that are either undervalued or have strong growth prospects, making them a hybrid growth-and-value play.
• Value-to-Growth (Hedge Fund Catalyst): This is the strategy of hedge funds like AIGH Capital Management LLC, who were a top buyer of Domo stock in Q2 2025. Their thesis is to find companies with a low valuation relative to their internal earnings power but with a clear reacceleration of revenue-the classic 'Value turning to Growth' situation. They are betting that the market hasn't fully priced in the success of the consumption model and the AI pivot. Hedge funds, which hold about 6.5% of the shares, often look for medium-term catalysts to drive the share price higher.

The stock's volatility-it has had 32 moves greater than 5% over the last year-also attracts short-term traders looking for swing opportunities, especially around earnings announcements. For a deeper dive into the company's background, you can check out Domo, Inc. (DOMO): History, Ownership, Mission, How It Works & Makes Money.

Here's a snapshot of the active investment thesis, using the Q3 fiscal year 2025 financials as a reference point:

The key takeaway is that the smart money isn't buying Domo for a quick revenue pop; they're buying the story of a software company that has successfully restructured its business model to capture value from the AI data wave, moving from a negative GAAP net loss of $18.8 million in Q3 FY2025 toward a more efficient, profitable future.

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

If you're looking at Domo, Inc. (DOMO), the first thing to understand is that institutional money is firmly in control. This isn't a retail-driven stock; it's one where the big players-the mutual funds, pension funds, and asset managers-hold the majority stake. As of late 2025, institutional investors own approximately 71.15% of the company, which means their collective trading decisions are what truly move the stock.

This high level of institutional ownership signals a degree of credibility in the investment community, but it also means the stock price is highly sensitive to their actions. When institutions start selling, the price can drop fast. For a deeper dive into the company's background, you might find this helpful: Domo, Inc. (DOMO): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors and Their Stakes

The largest institutional shareholders are exactly who you'd expect to see on the register of a mid-cap tech company: passive index giants and active asset managers. The Vanguard Group, Inc. and BlackRock, Inc. lead the pack, holding significant positions that reflect their broad market index strategies. These are not activist investors, but their sheer size gives them immense power.

Here's the quick math on the top institutional holders, based on recent 2025 filings:

Notice that the top five institutional holders alone account for over 38% of the total shares outstanding. This concentration is a key risk factor to monitor. Plus, you have to factor in CEO Joshua James, who also holds a substantial insider stake of 5.10% or 2,103,840 shares.

Recent Shifts and Accumulation Trends

Looking at the 2025 fiscal year data, the trend is clear: institutional investors are net accumulators of Domo, Inc. stock. In the most recent reporting quarter, the institutional shares (Long) increased by a notable 9.42%, representing an accumulation of approximately 2.85 million shares.

Over the last 12 months, the total institutional inflows-money coming into the stock-hit $159.38M, significantly outpacing the outflows of $79.87M. This net buying suggests a positive sentiment or a belief in the company's medium-term value proposition among a large segment of professional money managers. It's defintely a sign of accumulation, not liquidation.

• Total institutional owners: 291 firms.
• Quarterly change in ownership: 8.15% increase.
• Net institutional buying: $79.51M over the last 12 months.

The Institutional Impact on Stock and Strategy

The role of these large investors goes beyond simply trading shares; they exert a powerful influence on both the stock price and the company's strategic direction. Since institutions own more than half the issued stock, the board of directors must pay close attention to their preferences and concerns.

The stock's volatility is directly tied to this ownership structure. For example, institutional investors lost 11% in a single recent week, but they also benefited from a 36% one-year return, showing the high-stakes, high-volatility nature of the stock when the big money moves. Furthermore, the presence of hedge funds, which own about 6.5% of the shares, introduces the potential for activist pressure, pushing management for near-term catalysts to drive the share price higher.

What this estimate hides is the difference between passive investors like Vanguard and active managers. The passive funds are price-insensitive holders, but the active funds are the ones whose buying and selling create the significant price swings you see. So, you need to watch those 13F filings closely for any major shifts by the active managers.

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

If you're looking at Domo, Inc. (DOMO), the first thing to understand is that institutional money-the big funds-calls the shots. These entities collectively own a massive chunk of the company, giving them significant leverage over strategy and stock movements. You're not just betting on the product; you're betting on the conviction of these major players.

As of late 2025, institutional investors hold about 71.15% of Domo, Inc.'s shares outstanding, a figure that dwarfs the 12.85% held by insiders. This dynamic means any shift in sentiment from a handful of major funds can create volatility, as we saw when institutional holdings dropped 11% in value during a single week in November 2025. That's why tracking their moves is crucial.

The top shareholders are a who's who of passive and active managers, but the sheer size of the passive giants makes them the anchor. Here's a look at the largest institutional owners and their stakes, based on the most recent filings:

• The Vanguard Group, Inc.: Holds approximately 12.12% of shares, valued at about $61.81 million.
• BlackRock, Inc.: Holds about 7.67%, with a stake value of roughly $39.12 million.
• Capital Research Global Investors: Owns approximately 6.67%, valued at nearly $34.02 million.

The Vanguard Group, Inc. and BlackRock, Inc. are primarily passive investors, meaning they track broad market indexes. Their influence is less about boardroom activism and more about proxy voting power on critical issues like executive compensation and corporate governance. They don't typically sell out in a hurry. Still, their large, stable positions provide a baseline of liquidity and credibility for Domo, Inc. in the broader investment community.

Activist and Insider Moves: Where the Action Is

While the passive funds provide stability, the more immediate stock movements often come from smaller, more active funds and company insiders. The hedge fund community, which holds about 6.5% of Domo, Inc. shares, tends to look for medium-term catalysts and can be quite activist.

A great example of high-conviction buying came from the top: Founder and CEO Joshua G. James. He is the largest individual shareholder, owning approximately 2.10 million shares, representing a 5.10% stake. His confidence was defintely on display in June 2025 when he purchased an additional 13,025 shares for an estimated $165,896. When the person running the company puts their own cash on the line, it's a strong signal of internal belief in the strategy.

The first quarter of fiscal year 2025 saw some notable, and sometimes contradictory, shifts among the more active managers:

• Buyers: AIGH Capital Management LLC and Portolan Capital Management, LLC were aggressive, adding 751,583 shares and 584,277 shares, respectively. This suggests a belief that the company's pivot toward consumption-based contracts and AI innovation-which helped drive Q3 2025 total revenue to $79.8 million-is paying off.
• Sellers: Conversely, JPMorgan Chase & Co. removed a substantial 460,917 shares, a 71.7% reduction in their position. This kind of sharp exit from a major financial institution signals a clear loss of conviction in the near-term outlook or a re-allocation of capital elsewhere.

These divergent moves highlight the core debate: Are Domo, Inc.'s investments in AI and its ecosystem-led growth model enough to overcome its GAAP net loss of $18.8 million in Q3 2025? The buyers think yes; the sellers are taking their chips off the table. If you want a deeper dive into the financial health that's driving these decisions, you should check out Breaking Down Domo, Inc. (DOMO) Financial Health: Key Insights for Investors. You need to weigh the long-term potential against the near-term profitability pressures.

Market Impact and Investor Sentiment

You're looking at Domo, Inc. (DOMO) and wondering who's truly steering the ship and why the stock moves the way it does. The direct takeaway is that institutional investors-the big money-are firmly in control, holding the majority of shares, and their current sentiment is cautiously optimistic, driven by solid subscription growth but tempered by market volatility.

As of late 2025, institutional investors collectively own a massive chunk of the company, with ownership figures ranging from approximately 63% to a high of 76.64% of the outstanding stock. This level of concentration means the stock price is defintely sensitive to their trading actions. When a few large funds decide to buy or sell, the market notices immediately. The top six shareholders alone account for about 52% of the business, which is a significant concentration of power.

The sentiment among these major players is generally positive, but it's a realist's optimism. They're buying into the company's core performance: long-term subscription Remaining Performance Obligation (RPO) is up a sharp 44.1% year-over-year, hitting $189.6 million, which signals strong customer commitment. That's a clear sign of business health, but the stock itself is a wild ride.

• Institutional ownership dictates price sensitivity.
• Subscription RPO growth is the main bullish driver.
• High insider control adds a layer of complexity.

Who's Buying and Why: The Major Shareholders

When you peel back the layers of institutional ownership, you find a few key players whose decisions carry the most weight. Your largest individual shareholder is CEO Joshua James, holding around 13% of the shares outstanding. This high insider ownership is a double-edged sword; it aligns management's interests with shareholders, but it also gives a small group immense power, especially with the dual-voting class structure.

The largest institutional holders are the passive giants, which is typical for a mid-cap tech stock. The Vanguard Group, Inc. is a top holder with roughly a 12% stake, and BlackRock, Inc. is close behind with about 7.7% of shares outstanding. These firms are largely passive investors, meaning they buy to track an index or for long-term allocation, not for activist reasons. Their presence provides a baseline of stability and credibility for Domo, Inc. (DOMO).

Here's the quick math on the top institutional holdings, based on Q3 2025 filings, showing the sheer scale of the passive investment base:

Market Reactions to Ownership Shifts

The stock market's response to ownership changes in Domo, Inc. (DOMO) during the 2025 fiscal year has been a story of volatility, often tied to broader tech sector movements. For example, in May 2025, a 12% stock price gain directly benefited institutional investors, rewarding their conviction in the company's turnaround narrative. Still, you also saw institutional investors lose 11% of their holdings value in just one week in November 2025, which shows how quickly sentiment can turn on a growth stock.

The stock was up a strong 74.2% since the beginning of the year as of mid-November 2025, but it was also trading 32.1% below its September 2025 52-week high of $18.20. This recent drop, including a 7.2% fall in one day in November, was less about a company-specific catastrophe and more about investors taking profits and getting wary of high valuations across the AI-driven tech sector. The market is rewarding the strong one-year return of 36% for institutions, but it's punishing any sign of valuation stretch.

If you want to dig deeper into the company's financial stability, you should read Breaking Down Domo, Inc. (DOMO) Financial Health: Key Insights for Investors.

Analyst Consensus and Investor Outlook

Looking ahead, the analyst community is a clear source of positive sentiment, which helps underpin the institutional buying. The consensus rating for Domo, Inc. (DOMO) is a 'Buy' or 'Moderate Buy' from the 8-10 analysts covering it in November 2025. They see a significant upside from the current trading price.

The average price target sits between $15.13 and $19.60, with the highest target at $21.00. This implies a potential upside of up to 69.77% from the November 2025 price of around $12.37, which is a strong vote of confidence. Analysts are factoring in the company's positive free cash flow of $56.16 million and the raised fiscal year 2026 revenue guidance of $316-$320 million. The belief is that the focus on AI-driven analytics will continue to drive customer loyalty, evidenced by the 85% gross retention rate.

What this estimate hides, however, is the risk from the dual-voting class structure and management turnover, which are internal challenges that could impact strategic direction, as some analysts note. The positive analyst view is a near-term opportunity, but you must be mindful of the corporate governance risk. The next clear action is to watch the Q3 fiscal year 2026 earnings call, scheduled for November 2025, as this will either validate or challenge the current analyst price targets.