GoDaddy Inc Receives ‘Moderate Buy’ Rating from 11 Ratings Firms
The online world is an ever-evolving space, and companies like GoDaddy Inc are at the forefront of providing the necessary tools to succeed. It comes as no surprise that the eleven ratings firms covering the stock have recommended a “Moderate Buy” for the technology company, according to Bloomberg reports.
Out of those 11 analysts, two have held back on giving a complete endorsement by rating the stock as “hold.” However, six analysts gave a confident endorsement of “buy,” while one analyst went even further with a strong buy recommendation for the company. These experts base their evaluation on GoDaddy’s current position in the market, its past performances, and carefully baked-in industry analysis.
Moreover, these ratings firms examine several metrics when evaluating a company’s short-term performance and future prospects. The analysts study profit-to-sales ratios, price-earnings ratios, and other factors to gain insight into how well a particular organization is likely to fare in the near-term future.
Furthermore, an essential consideration for any potential investor is to look at projections from experienced professionals who specialize in analyzing businesses. According to brokerages who have issued ratings on GoDaddy over the past year, there lies an average twelve-month target price of $93.10 per share.
However, as with any public company listed on various exchanges worldwide (in this case NYSE: GDDY), actual stock prices remain subject to fluctuation based on multiple factors beyond analysts’ predictions or sophisticated calculation models.
In contrast yet equally important to note are GoDaddy’s recent earnings report released last May 4th. The report revealed $0.30 EPS in Q1 2021; however, it missed estimated consensus figures by $0.22 per share at $0.52 EPS. Although revenue growth reached 3.3% compared to Q1 2020, the firm suffered a negative return on equity of 95.36% and a net margin of 8.03% for the first quarter of this year.
Despite these setbacks, GoDaddy managed to report $1.04 billion revenue during Q1 2021 compared to analyst estimates still at $1.04 billion, reflecting its strength in providing domain name registration and web hosting services as it provides website building, hosting, and security tools under the Core Platform (Core) and Applications and Commerce (A and C) segments.
Taking everything into consideration, equities research analysts remain optimistic about GoDaddy’s future prospects as they anticipate an EPS of 2.53 for this current year alone with the company continuing to rise to the occasion by providing essential digital tools and services that drive business growth worldwide.
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Mixed Reactions to GoDaddy: Some Analysts Decrease Price Objectives While Others Boost Them
Recent reports from research firms have shown mixed reactions to GoDaddy, with some decreasing their price objectives while others boost them. The technology company’s shares opened at $71.71 on Tuesday and has a 52-week low of $64.65 and a high of $85.32. GoDaddy provides domain name registration and web hosting services along with website building, hosting, and security tools through its Applications and Commerce (A&C) and Core Platform (Core) segments. While the A&C segment focuses on sales of products containing proprietary software, commerce products, and third-party email and productivity solutions, the Core segment provides customers with infrastructure platforms such as hosting applications for developers. GoDaddy also experienced insider selling over the past couple of months from its CAO Nick Daddario and CEO Amanpal Singh Bhutani respectively. However, hedge funds such as Schonfeld Strategic Advisors LLC acquired new stakes in shares while others raised their holdings amid the uncertainty surrounding GoDaddy’s performance in the market.
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