TEMPE, Ariz.—Roger Chen, the Chief Operating Officer of GoDaddy Inc. (NYSE:GDDY), recently sold 1,000 shares of the company's Class A common stock. The shares were sold at a price of $164.16 each, totaling $164,160. This transaction was executed on October 15, 2024, under a 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stock. Following the sale, Chen retains direct ownership of 186,632 shares of GoDaddy.
In other recent news, GoDaddy Inc. has reported a 7% increase in total revenue for Q2, reaching $1.1 billion, largely driven by a 15% growth in the Applications and Commerce segment. The strong performance prompted the company to raise its full-year revenue guidance. Analyst firm Benchmark raised its price target for GoDaddy from $170 to $186, maintaining a Buy rating, influenced by GoDaddy's Free Cash Flow per Share Compound Annual Growth Rate target for the years 2024 to 2026.
RBC Capital Markets also increased its price target from $145 to $175, maintaining an Outperform rating, following GoDaddy's strong Q2 performance. Despite carrying a net debt of $3.4 billion, GoDaddy remains committed to its AI initiatives, including GoDaddy Airo and GABI, a customer service tool.
Barclays adjusted its outlook on GoDaddy, raising its price target to $185 while maintaining an Overweight rating. The firm's analysis pointed to GoDaddy's revenue sub-segments, highlighting the importance of GoDaddy's primary and aftermarket domain businesses. Barclays anticipates that GoDaddy's gross margin will remain stable in the near future, suggesting a strategic area for the company to focus on for growth.
Cantor Fitzgerald initiated coverage with a Neutral rating and a price target of $170. Baird maintained an Outperform rating and a $190.00 price target for GoDaddy's stock, while Benchmark maintained a Buy rating on GoDaddy with a steady price target of $186.00. These are recent developments that could impact the company's future performance.
InvestingPro Insights
As GoDaddy's COO Roger Chen reduces his stake, investors might be curious about the company's current financial standing and market position. According to InvestingPro data, GoDaddy boasts a substantial market capitalization of $23.22 billion, reflecting its significant presence in the domain registration and web hosting industry.
The company's stock has shown remarkable performance, with a one-year price total return of 115.35% as of the latest data. This aligns with an InvestingPro Tip indicating that GoDaddy has experienced a "high return over the last year." Additionally, the stock is trading near its 52-week high, with the current price at 98.07% of that peak.
From a valuation perspective, GoDaddy's P/E ratio stands at 13.05, which may be considered attractive for a tech company. However, an InvestingPro Tip suggests that the stock is "trading at a high EBIT valuation multiple," indicating that investors are paying a premium for the company's earnings before interest and taxes.
It's worth noting that management has been aggressively buying back shares, according to another InvestingPro Tip. This could be seen as a sign of confidence in the company's future prospects and may help support the stock price.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for GoDaddy, providing a deeper dive into the company's financial health and market position.
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