InMode (INMD) shareholder Doma Perpetual Capital Management said Wednesday it has urged the company's board to conduct a tender offer for 30% of its shares in Q1, followed by a 10% stock buyback, to address low valuation and alleged inefficient capital management.

In a letter to the InMode board, Doma Perpetual claimed the company retained excessive cash on its balance sheet, citing about $640 million in estimated cash reserves and a lack of debt.

Doma reiterated its call to diversify production outside Israel, citing cost and stability concerns, and raised issues about management's handling of senior sales roles, which it believes contributed to an alleged decline in sales.

The firm said it was prepared to take legal action if the board did not implement its suggested changes.

InMode did not immediately respond to a request for comment from MT Newswires.

Shares of the company were up more than 3% in recent Wednesday trading.

Price: 16.58, Change: +0.51, Percent Change: +3.17