May 8, 2023 – The State Board of Administration of Florida Retirement System has announced a decrease in its stake in GoDaddy Inc. (NYSE:GDDY) by 3.8% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). As an institutional investor, the company owned approximately 0.13% worth $14,856,000 at the end of the most recent reporting period after selling 7,750 shares during this period.
GoDaddy is a renowned provider of domain name registration and web hosting services which provides consumers with website building tools along with hosting and security services to help them create and launch their websites efficiently. It operates through two segments: Applications and Commerce (A&C) and Core Platform (Core), where A&C consists primarily of sales of proprietary tools for commerce products along with third-party email and productivity solutions.
The tech giant has recently caught analysts’ attention as Raymond James upped their price target on shares of GoDaddy from $88.00 to $94.00 on Wednesday, February 15th while giving the company a “strong-buy” rating. However, Barclays decreased its price objective on shares of GoDaddy from $100.00 to $98.00 shortly after.
Despite this decline in holdings by an institutional investor such as State Board of Administration of Florida Retirement System, it still represents a good investment choice for investors seeking reliable returns from a moderately innovative tech company that delivers small-business solutions globally.
In conclusion, based on Bloomberg.com’s data provided by three investment analysts who have rated the stock with a hold rating while seven labeled it as a buy rating; one labeled it as a strong buy label to the stock; displays that GDDY currently has a consensus rating among analysts as “Moderate Buy” which presents itself as an attractive investment opportunity for cautious investors looking to amplify their portfolio with a low-risk, high-reward technology company.
Hedge Funds and Institutional Investors Increase Position in GoDaddy Inc. Amidst Insider Trading Activity and Lower-Than-Expected Earnings
As of May 8, 2023, a number of hedge funds and institutional investors have increased their position in GoDaddy Inc., which engages in domain name registration and web hosting services. Starboard Value LP raised its stake by 21.5% in the first quarter, while Goldman Sachs Group Inc. boosted its holding by 108.7%. KBC Group NV and Assenagon Asset Management S.A. both saw significant increases in their position during the third and fourth quarters of last year, respectively. California Public Employees Retirement System also acquired additional shares in the third quarter.
However, recent insider trading activity has raised some eyebrows among investors. CEO Amanpal Singh Bhutani sold nearly 8,000 shares on March 2 for a total value of $595,932. CAO Nick Daddario also sold over 500 shares at an average price of $74.96 on the same day. In the past three months, insiders have sold a total of almost 25,000 shares worth about $1.9 million.
Despite these developments, GoDaddy’s stock has been fairly steady recently, opening at $69.65 on May 8 with a market capitalization of $10.71 billion and a P/E ratio of 33.33. The company’s revenue for the first quarter was slightly below analyst estimates at $1.04 billion with EPS falling short as well due to higher expenses from investments in research and development among other areas.
Looking forward, analysts predict that GoDaddy will post earnings per share of $2.53 for the current fiscal year based on recent financial data and market trends. Overall, while investor sentiment may be mixed given both positive institutional holdings and insider trading activity along with lower-than-expected earnings results in Q1-2023 are signs to monitor closely moving forward.