Is GoDaddy Inc. (NYSE: GDDY) Back In The Buying Zone?


The Vanguard Group, Inc. recently announced the acquisition of new stake in GoDaddy Inc. (NYSE:GDDY). The institutional investor has increased its shareholding in the Technology company by 2.89% to 16.64 million shares with purchase of 0.47 million shares. This fresh investment now brings its stake to 10.07% valued currently at $1.22 billion. In addition, Fidelity Management & Research Co. raised its holdings by 4.75 million to 12.12 million shares. And Select Equity Group LP has lifted its position by 30.02% or 1.83 million shares – to 7.91 million shares.

With over 0.84 million GoDaddy Inc. (GDDY) shares trading Thursday and a closing price of $68.89 on the day, the dollar volume was approximately $57.71 million. The shares have shown a negative weekly performance of -0.68% and its price on 07/30/20 gained nearly 1.88%. Currently, there are 173.11M common shares owned by the public and among those 164.22M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for GDDY have a consensus price objective of $85.29. The analysts have set the share’s price value over the next 12 months at a high of $94.00 and a low of $69.00 should the stock experience a downside. Incidentally, analysts’ outlook for the GoDaddy Inc. stock is 1.80 for the next 12 months. The average price target is 19.39% above its last price level and an upside to the estimated low will see the stock gain 0.16% over that period. But an upside of 26.71% will see the stock hit the forecast high price target while mean target price for the stock is $85.00.

Insiders at the company have transacted a total of 107 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 42 of these insider trades were purchases, accounting for 773,075 shares. Insider sales of the common stock occurred on 65 occasions, with total insider shares sold totaling 398,304 shares.

The top 3 mutual fund holders in GoDaddy Inc. are American Funds New Perspective Fu, Janus Henderson Enterprise Fund, and Vanguard Total Stock Market Index. American Funds New Perspective Fu owns 6.36 million shares of the company’s stock, all valued at over $466.33 million. The company bought an additional 0.14 million shares recently to bring their total holdings to about 3.85% of the shares outstanding. Janus Henderson Enterprise Fund bought 67633.0 shares to see its total holdings expand to 5.54 million shares valued at over $406.1 million and representing 3.35% of the shares outstanding. Vanguard Total Stock Market Index sold -0.21 million shares to bring its total holdings to over 4.72 million shares at a value of $345.78 million. Vanguard Total Stock Market Index now owns shares totaling to 2.85% of the shares outstanding.

Shares of GoDaddy Inc. (NYSE: GDDY) opened at $66.99, down -$0.63 from a prior closing price of $67.62. However, the script later closed the day at $68.89, up 1.88%. The company’s stock has a 5-day price change of -0.68% and -0.78% over the past three months. GDDY shares are trading 1.43% year to date (YTD), with the 12-month market performance down to -6.12% lower. It has a 12-month low price of $40.25 and touched a high of $84.49 over the same period. Currently, 0.84 million shares have been traded, compared to an average intraday trading volume of 1.60 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.92%, -7.65%, and 0.57% respectively.

Institutional ownership of GoDaddy Inc. (NYSE: GDDY) 173.11M shares outstanding. Mutual fund holders own 5.20%, while other institutional holders and individual stakeholders account for 53.44% and 48.28% respectively.

It has a market capitalization of $11.60B and a beta (3y monthly) value of 0.86. The stock’s trailing 12-month PE ratio is 74.16, while the earnings-per-share (ttm) stands at $0.93. The company has a PEG of 2.39 and a Quick Ratio of 0.60 with the debt-to-equity ratio at 4.97. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.44% over the week and 3.07% over the month.

Analysts forecast that GoDaddy Inc. (GDDY) will achieve an EPS of $0.15 for the current quarter, $0.29 for the next quarter and $1.44 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.04 while analysts give the company a high EPS estimate of $0.25. Comparatively, EPS for the current quarter was -$0.07 a year ago. Earnings per share for the fiscal year are expected to increase by 77.30%, and 42.69% over the next financial year. EPS should grow at an annualized rate of 31.00% over the next five years, compared to 22.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate GoDaddy Inc. (GDDY) as a “Strong Buy” at a consensus score of 1.80. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 2 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the GDDY, a number of firms have released research notes about the stock. Wedbush stated their Outperform rating for the stock in a research note on April 06, 2020, with the firm’s price target at. Rosenblatt coverage for the GoDaddy Inc. (GDDY) stock in a research note released on March 11, 2020 offered a Buy rating with a price target of $88. Citigroup was of a view on October 11, 2018 that the stock is Buy, while Wedbush gave the stock Neutral rating on September 14, 2018, issuing a price target of $85. Goldman on their part issued Buy rating on March 23, 2018.


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