Zacks Investment Research Lowers Godaddy (GDDY) to Sell

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Zacks Investment Research downgraded shares of Godaddy (NYSE:GDDY) from a hold rating to a sell rating in a research report report published on Tuesday.

According to Zacks, “GoDaddy’s heavy debt burden continues to be an overhang. Further, its increasing expenses continue to pose threat to its profitability. Although acquisitions and international expansion are aiding the company’s business growth but rising costs related to these activities remain concerns. Nevertheless, growing subscriptions and expanding product portfolio remain the key growth drivers of the company. The company’s investment in products, technology platform and customer care, as well as offering highly personalized products and services globally are likely to drive shareholder value. Notably, the stock has outperformed the industry it belongs to over a year. However, softness in Chinese market is a headwind. Further, intensifying competition poses risk to the company’s market position.”

A number of other analysts also recently commented on the stock. Wedbush restated a neutral rating and set a $85.00 price target on shares of Godaddy in a research report on Thursday, September 13th. Morgan Stanley set a $85.00 price target on shares of Godaddy and gave the stock a buy rating in a research report on Wednesday, November 7th. ValuEngine downgraded shares of Godaddy from a strong-buy rating to a buy rating in a research report on Thursday, October 11th. SunTrust Banks restated a buy rating and set a $87.00 price target on shares of Godaddy in a research report on Friday, November 2nd. Finally, TheStreet downgraded shares of Godaddy from a b- rating to a c+ rating in a research report on Monday, October 29th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and thirteen have given a buy rating to the company. The company has an average rating of Buy and an average target price of $78.07.

Godaddy stock traded down $0.90 during midday trading on Tuesday, reaching $63.02. 24,170 shares of the stock traded hands, compared to its average volume of 1,361,912. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 3.29. The firm has a market capitalization of $11.02 billion, a price-to-earnings ratio of 149.94, a PEG ratio of 4.65 and a beta of 0.67. Godaddy has a fifty-two week low of $49.93 and a fifty-two week high of $84.97.

Godaddy (NYSE:GDDY) last posted its earnings results on Tuesday, November 6th. The technology company reported $0.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.10). The firm had revenue of $679.50 million for the quarter, compared to analyst estimates of $673.79 million. Godaddy had a net margin of 4.96% and a return on equity of 8.01%. The company’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.17 earnings per share. Research analysts expect that Godaddy will post 0.34 earnings per share for the current year.

In other news, CEO Scott Wagner sold 28,744 shares of the business’s stock in a transaction that occurred on Thursday, January 3rd. The shares were sold at an average price of $60.69, for a total transaction of $1,744,473.36. Following the sale, the chief executive officer now owns 156,607 shares in the company, valued at $9,504,478.83. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Arne Josefsberg sold 7,572 shares of the business’s stock in a transaction that occurred on Monday, December 24th. The shares were sold at an average price of $59.11, for a total transaction of $447,580.92. The disclosure for this sale can be found here. Insiders sold a total of 74,038 shares of company stock worth $4,943,679 over the last quarter. Insiders own 7.63% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue raised its holdings in shares of Godaddy by 0.8% during the fourth quarter. State of Alaska Department of Revenue now owns 19,773 shares of the technology company’s stock valued at $1,297,000 after acquiring an additional 161 shares during the period. Nordea Investment Management AB grew its position in Godaddy by 3.1% during the third quarter. Nordea Investment Management AB now owns 5,392 shares of the technology company’s stock valued at $449,000 after purchasing an additional 161 shares in the last quarter. Csenge Advisory Group purchased a new position in Godaddy during the third quarter valued at approximately $62,000. Federated Investors Inc. PA grew its position in Godaddy by 31.6% during the third quarter. Federated Investors Inc. PA now owns 1,860,565 shares of the technology company’s stock valued at $155,152,000 after purchasing an additional 446,520 shares in the last quarter. Finally, Belpointe Asset Management LLC purchased a new position in Godaddy during the third quarter valued at approximately $566,000. Institutional investors and hedge funds own 94.81% of the company’s stock.

About Godaddy

GoDaddy Inc designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally. It provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity; hosting products, such as shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security.

See Also: Net Income

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