GoDaddy (NYSE:GDDY) Shares Gap Down on Disappointing Earnings

GoDaddy Inc. (NYSE:GDDY)’s stock price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $212.54, but opened at $194.75. GoDaddy shares last traded at $190.69, with a volume of 1,129,279 shares trading hands.

The technology company reported $1.42 EPS for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.01). GoDaddy had a return on equity of 267.29% and a net margin of 41.74%.

Wall Street Analysts Forecast Growth

GDDY has been the topic of a number of analyst reports. Morgan Stanley lifted their target price on shares of GoDaddy from $227.00 to $228.00 and gave the stock an “equal weight” rating in a research report on Friday. JPMorgan Chase & Co. lifted their target price on shares of GoDaddy from $224.00 to $231.00 and gave the stock an “overweight” rating in a research report on Thursday, February 6th. UBS Group raised their price target on shares of GoDaddy from $172.00 to $225.00 and gave the stock a “neutral” rating in a report on Friday. Jefferies Financial Group raised their price target on shares of GoDaddy from $170.00 to $200.00 and gave the stock a “buy” rating in a report on Wednesday, December 4th. Finally, Piper Sandler raised their price target on shares of GoDaddy from $176.00 to $177.00 and gave the stock a “neutral” rating in a report on Friday. Six analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, GoDaddy has a consensus rating of “Moderate Buy” and an average price target of $213.20.

Insider Activity at GoDaddy

In related news, CEO Amanpal Singh Bhutani sold 3,000 shares of the business’s stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $197.77, for a total transaction of $593,310.00. Following the transaction, the chief executive officer now owns 342,956 shares in the company, valued at $67,826,408.12. The trade was a 0.87 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Brian Sharples sold 500 shares of the company’s stock in a transaction dated Monday, December 2nd. The stock was sold at an average price of $197.77, for a total transaction of $98,885.00. Following the completion of the sale, the director now owns 23,621 shares in the company, valued at approximately $4,671,525.17. This trade represents a 2.07 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 23,482 shares of company stock worth $4,709,650 over the last 90 days. 0.61% of the stock is owned by company insiders.

Institutional Investors Weigh In On GoDaddy

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Mercer Global Advisors Inc. ADV grew its holdings in GoDaddy by 4.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 64,438 shares of the technology company’s stock worth $12,718,000 after purchasing an additional 2,769 shares during the period. Westbourne Investments Inc. purchased a new stake in GoDaddy in the fourth quarter worth about $714,000. Caisse DE Depot ET Placement DU Quebec grew its holdings in GoDaddy by 88.2% in the fourth quarter. Caisse DE Depot ET Placement DU Quebec now owns 1,082,381 shares of the technology company’s stock worth $213,630,000 after purchasing an additional 507,374 shares during the period. Freestone Grove Partners LP purchased a new stake in GoDaddy in the fourth quarter worth about $1,216,000. Finally, Rehmann Capital Advisory Group lifted its stake in shares of GoDaddy by 4.1% in the fourth quarter. Rehmann Capital Advisory Group now owns 1,793 shares of the technology company’s stock worth $344,000 after buying an additional 71 shares in the last quarter. Hedge funds and other institutional investors own 90.28% of the company’s stock.

GoDaddy Trading Down 14.1 %

The firm’s 50 day moving average price is $204.20 and its 200-day moving average price is $179.81. The stock has a market cap of $25.63 billion, a P/E ratio of 14.11 and a beta of 1.15. The company has a debt-to-equity ratio of 10.61, a current ratio of 0.56 and a quick ratio of 0.56.

About GoDaddy

GoDaddy Inc engages in the design and development of cloud-based products in the United States and internationally. It operates through two segments: Applications and Commerce, and Core Platform. The Applications and Commerce segment provides applications products, including Websites + Marketing, a mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; and Managed WordPress, a streamlined and optimized website building that allows customers to easily build and manage a faster WordPress site; Managed WooCommerce Stores to sell anything and anywhere online; and marketing tools and services, such as GoDaddy Studio mobile application, search engine optimization, Meta and Google My Business, and email and social media marketing designed to help businesses acquire and engage customers and create content.