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GoDaddy CFO sells $422k in company stock

Published 05/09/2024, 23:22
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TEMPE, AZ - In a recent transaction on September 4, GoDaddy Inc. (NYSE:GDDY) Chief Financial Officer Mark McCaffrey sold shares of the company's Class A Common Stock, according to a new SEC filing. The sale totaled approximately $422,006, with the shares being sold at a weighted average price of $157.2305.


The filing indicated that the shares sold by McCaffrey were to satisfy tax withholding obligations related to the vesting of Restricted Stock Units. As per GoDaddy's policy, shares are automatically sold to cover such tax obligations. The exact number of shares sold to meet the tax liability was 2,684.


Investors following GoDaddy Inc. may note that after this transaction, McCaffrey still retains 98,602 shares of Class A Common Stock in the company. The price range for the shares sold was a narrow band from $157.2303 to $157.2307, highlighting a consistent sale price for the stock during the transaction period.


GoDaddy Inc., a leader in internet domain registration and web hosting, continues to be a significant player in the technology services industry. The financial moves of its executives, particularly those involving stock transactions, are closely watched by the market for indications of the company's performance and insider confidence.


Investors and security holders can request more detailed information about the sale prices for each share from either the company or McCaffrey if needed. The transaction was signed off by Marc Padwe, Attorney-in-Fact, on September 5, the day after the reported sale.


In other recent news, GoDaddy Inc. reported a 7% increase in total revenue for Q2, reaching $1.1 billion, with a significant 15% growth in the Applications and Commerce segment. This strong performance led to an upward adjustment in the company's full-year revenue guidance. Analyst firms Baird, Cantor Fitzgerald, Benchmark, and RBC Capital Markets have provided updates on GoDaddy's stock. Baird maintained an Outperform rating, pointing to less severe headwinds than expected, while Cantor Fitzgerald initiated coverage with a Neutral rating, citing sustained benefits from the company's strategies and AI-driven monetization efforts. Benchmark raised its price target to $186, maintaining a Buy rating, influenced by GoDaddy's Free Cash Flow per Share (FCF/share) Compound Annual Growth Rate (CAGR) target for the years 2024 to 2026. RBC Capital Markets increased its price target to $175, maintaining an Outperform rating, following GoDaddy's strong Q2 performance. Despite a net debt of $3.4 billion, GoDaddy remains committed to its AI initiatives, including GoDaddy Airo and GABI, a customer service tool. These recent developments provide investors a clearer picture of GoDaddy's expected performance trajectory.


InvestingPro Insights


As GoDaddy Inc. (NYSE:GDDY) makes headlines with its CFO's recent stock transaction, investors may seek deeper insights into the company's financial health and market performance. According to InvestingPro, GoDaddy's management has been actively engaging in share buybacks, which is often a sign of confidence in the company's value and future prospects. This aligns with the company's recent stock performance, where GoDaddy has seen a high return over the last year, with a year-to-date price total return of 48.16% and a staggering 115.61% return over the past year.


Despite this strong return, InvestingPro Tips indicate that GoDaddy's net income is expected to drop this year, which could be a concern for investors looking for sustainable profit growth. Moreover, the company is trading at a high Price / Book multiple of 137.38, suggesting a premium valuation compared to its book value. This might be a point of consideration for value-oriented investors.


From a financial data standpoint, GoDaddy boasts a robust gross profit margin of 63.16% for the last twelve months as of Q2 2024, reflecting its ability to retain a significant portion of revenue after the cost of goods sold. The company's revenue has also grown by 5.91% over the same period, indicating a steady increase in sales.


For investors intrigued by these insights, there are additional InvestingPro Tips available on the platform. Specifically, there are 14 more tips listed on InvestingPro (https://www.investing.com/pro/GDDY) that can provide further guidance and analysis for those considering an investment in GoDaddy Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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