Godaddy (GDDY) Lowered to “Sell” at Zacks Investment Research
Zacks Investment Research cut shares of Godaddy (NYSE:GDDY) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.
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.”
Several other equities analysts have also recently commented on GDDY. Wedbush reiterated a neutral rating and set a $85.00 target price on shares of Godaddy in a research note on Thursday, September 13th. ValuEngine cut shares of Godaddy from a strong-buy rating to a buy rating in a research note on Thursday, October 11th. Citigroup upgraded shares of Godaddy from a neutral rating to a buy rating in a research note on Thursday, October 11th. TheStreet cut shares of Godaddy from a b- rating to a c+ rating in a research note on Monday, October 29th. Finally, SunTrust Banks restated a buy rating and issued a $87.00 price objective on shares of Godaddy in a research note on Friday, November 2nd. Two analysts have rated the stock with a sell rating, four have given a hold rating and thirteen have assigned a buy rating to the company. The stock currently has an average rating of Buy and a consensus price target of $78.07.
Godaddy (NYSE:GDDY) last released its earnings results on Tuesday, November 6th. The technology company reported $0.08 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.18 by ($0.10). The company 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%. Godaddy’s revenue for the quarter was up 16.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.17 earnings per share. As a group, equities research analysts anticipate that Godaddy will post 0.34 EPS for the current year.
In other news, insider Rebecca Morrow sold 367 shares of the company’s stock in a transaction dated Friday, November 2nd. The shares were sold at an average price of $74.19, for a total value of $27,227.73. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Scott Wagner sold 28,744 shares of the company’s stock in a transaction dated Thursday, January 3rd. The stock was sold at an average price of $60.69, for a total transaction of $1,744,473.36. Following the completion of the sale, the chief executive officer now directly owns 156,607 shares in the company, valued at approximately $9,504,478.83. The disclosure for this sale can be found here. In the last 90 days, insiders sold 74,038 shares of company stock valued at $4,943,679. Corporate insiders own 7.63% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of GDDY. Csenge Advisory Group bought a new stake in shares of Godaddy in the 3rd quarter worth about $62,000. O Shaughnessy Asset Management LLC bought a new stake in Godaddy during the 3rd quarter worth about $150,000. Korea Investment CORP bought a new stake in Godaddy during the 3rd quarter worth about $153,000. FDx Advisors Inc. bought a new stake in Godaddy during the 3rd quarter worth about $202,000. Finally, IBM Retirement Fund bought a new stake in Godaddy during the 3rd quarter worth about $218,000. 94.81% of the stock is currently owned by institutional investors and hedge funds.
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.
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