On May 23, 2023, the financial world was abuzz with news that FDx Advisors Inc. had reduced its stake in GoDaddy Inc. by 32.2% during the first quarter of this year, according to their recent filing with the Securities & Exchange Commission. The move saw them sell off some 2,200 shares of the technology company’s stock, leaving them with only 4,622 shares on hand which were worth $346,000 at the end of Q1.
GoDaddy is a top-level domain registrar and web hosting provider that offers everything from website building tools to security features for SMBs and other businesses looking to establish a strong online presence. Under its banner are two operating segments: Applications and Commerce (A&C) which sells proprietary software products coupled with third-party email and productivity solutions as well as Commerce products, and Core Platform (Core) segment which caters to customers seeking hosting and reseller services.
Several equity researchers have recently weighed in on GoDaddy’s prospects for delivering value to investors in future quarters. Analysts at Benchmark reiterated their “buy” rating on GDDY stock while assigning it a price target of $100 per share based on their analysis dated February 13th of this year. Barclays took a more conservative approach by trimming their PT from $100 down to $98 citing concerns over moderate growth in key markets globally–as per data collated on May 5th this year. Things took a bullish turn when StockNews.com initiated coverage on behalf of its clients giving GoDaddy multiple thumbs up via a “buy” rating (May 18th). Other research teams like Robert W. Baird showed similar optimism last April while providing an “outperform” rating alongside estimation of a $95 price target for GDDY shares.
Raymond James demonstrated just how much faith they had in GoDaddy with their PT increase from $88 to $94 in their insightful research telling about the “strong buy” rating they assigned to GDDY shares (February 15th). With three equities research analysts providing a hold rating, seven others assigning a buy rating, and one giving it a strong buy, the consensus rating on Bloomberg’s financial platform averages out to be “Moderate Buy”. As of now, the consensus PT for GoDaddy stands at $93.10 making it an attractive proposition for discerning investors who have kept a watchful eye on its performance in recent times.
Institutional and insider investors catch attention of GoDaddy’s robust financial activities
GoDaddy has been making some waves recently with a series of transactions that have been catching investors’ attention. The technology company, which specializes in domain name registration and web hosting services has had several institutional investors and hedge funds buy and sell shares over the last few months.
Achmea Investment Management B.V. is among those who recently took up a new position in GoDaddy during the 1st quarter. Their investment was valued at $31,000. Allworth Financial LP also updated their position, which grew by 56.7% during the 4th quarter to now own 456 shares of the company’s stock valued at $34,000 after purchasing an additional 165 shares. Cullen Frost Bankers Inc., on the other hand, grew its position by an impressive 152.5% in the 3rd quarter to now possess 505 shares of the technology company’s stock worth $36,000 after obtaining an additional 305 shares.
Edmond DE Rothschild Holding S.A. bought a new position in GoDaddy in the third quarter valued at about $64,000 while Psagot Value Holdings Ltd increased their holding with a new position in GoDaddy during Q4 for about $75,000. It’s important to note that institutional investors currently own a staggering 97.32% of GDDY’s stock.
Meanwhile, insiders of Godaddy have been selling and buying stocks according to SEC filings available online since early March this year. On Thursday March 2nd last year alone CFO Mark Mccaffrey sold more than three thousand stocks for roughly $243k with CEO Amanpal Singh Bhutani selling around eight thousand stocks for roughly $595k as well.
As we can see from these transactions, GoDaddy’s financial activities are quite robust despite missing analysts’ estimates for EPS growth during Q1 this year by 22 cents ($0.30 compared to expected $0.52). Despite this, the company still managed to generate one of its highest revenues of $1.04 billion for the quarter, although this figure was not far from analysts’ expectations.
These recent developments make GoDaddy a stock worth keeping an eye on in the coming months as we navigate through a VUCA (Volatile, Uncertain, Complex and Ambiguous) market. So long as the company continues to innovate and adapt, it looks set to remain an industry leader in its field and bring sustained returns to investors alike.
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