DOMA Perpetual urges InMode board to execute share buybacks

DOMA Perpetual Capital Management LLC sent a letter to InMode Ltd. (NYSE: INMD) urging the board to execute share buybacks totaling 20% of outstanding shares. The Miami-based investment firm, which describes itself as a significant stockholder in InMode, proposed a 10% buyback in the fourth quarter of 2025 and another 10% buyback in the first quarter of 2026.

According to DOMA Perpetual's calculations, InMode maintains 53% of its current market capitalization in cash with no debt and generates more than 10% of its market capitalization in cash annually. The firm stated that after subtracting InMode's $510 million cash position, the company's market capitalization is $455 million, implying a trading multiple of approximately 3 times future free cash flow and earnings.

The letter criticized InMode's management, citing concerns about leadership decisions including the departure of the head of sales for the U.S. market without a succession plan. DOMA Perpetual also referenced CEO Moshe Mizrahy's recent statements that buybacks have not shown results for shareholders.

DOMA Perpetual noted that Mizrahy purchased 1,524,196 shares for $23,858,317 at an average price of $15.65 per share according to a January 16, 2025 filing. The firm argued that if the CEO found the valuation attractive for personal investment, the board should consider similar action on behalf of shareholders.

The letter addressed several arguments against buybacks, including tax implications and timing concerns. DOMA Perpetual stated that with anticipated interest rate cuts, the opportunity to purchase shares at current prices may diminish over the next six to nine months.

InMode develops and manufactures energy-based medical aesthetic and surgical technologies. The company has not issued a public response to the letter.

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