GoDaddy (NYSE:GDDY) Shares Gap Down Following Analyst Downgrade

GoDaddy Inc. (NYSE:GDDY)’s share price gapped down prior to trading on Friday after Benchmark lowered their price target on the stock from $185.00 to $140.00. The stock had previously closed at $99.33, but opened at $76.83. Benchmark currently has a buy rating on the stock. GoDaddy shares last traded at $77.7430, with a volume of 1,202,433 shares changing hands.

A number of other equities analysts also recently commented on the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of GoDaddy in a research note on Tuesday, June 16th. Raymond James Financial cut GoDaddy from a “strong-buy” rating to an “outperform” rating and set a $100.00 price objective on the stock. in a research note on Friday. William Blair downgraded GoDaddy from an “outperform” rating to a “market perform” rating in a report on Friday. Piper Sandler reiterated a “neutral” rating and issued a $95.00 target price on shares of GoDaddy in a research report on Friday. Finally, Wells Fargo & Company set a $80.00 price target on GoDaddy in a report on Friday. Nine equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $115.14.

Insider Buying and Selling at GoDaddy

In related news, CEO Amanpal Singh Bhutani sold 8,373 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $89.86, for a total transaction of $752,397.78. Following the completion of the sale, the chief executive officer owned 521,747 shares of the company’s stock, valued at $46,884,185.42. This represents a 1.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Phontip Palitwanon sold 542 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $89.86, for a total transaction of $48,704.12. Following the sale, the chief accounting officer owned 19,995 shares in the company, valued at approximately $1,796,750.70. This trade represents a 2.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 16,751 shares of company stock valued at $1,480,228. Corporate insiders own 0.93% of the company’s stock.

Key GoDaddy News

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: GoDaddy reported second-quarter revenue of approximately $1.30 billion, up 6.6% year over year and slightly above expectations, while adjusted earnings of $1.83 per share exceeded the $1.69–$1.72 consensus range. GoDaddy second-quarter financial results
• Positive Sentiment: Management forecast third-quarter revenue of $1.315 billion to $1.335 billion and reaffirmed its approximately $1.8 billion free-cash-flow target for 2026, supporting the company’s cash-generation investment case. GoDaddy third-quarter forecast and free cash flow target
• Positive Sentiment: AI-powered Airo continued to show strong traction, with annualized recurring revenue reportedly increasing fivefold to $50 million. Total recurring revenue reached about $4.4 billion, while record margins and free cash flow were highlighted as additional strengths. GoDaddy Q2 earnings call highlights
• Neutral Sentiment: Raymond James lowered GoDaddy from “strong buy” to “outperform,” citing limited visibility, but maintained a $100 price target—only modestly above the price referenced in the analyst note. Raymond James GoDaddy rating change
• Negative Sentiment: Investors viewed the outlook as underwhelming: third-quarter revenue guidance was broadly in line with estimates, while full-year revenue guidance of $5.2 billion to $5.3 billion offered limited upside. The muted forecast overshadowed the quarterly earnings beat. GoDaddy outlook reaction
• Negative Sentiment: Separate law-firm announcements about investigations into potential securities-law violations add headline and litigation risk, although they do not represent a finding of wrongdoing. GoDaddy securities investigation announcement

Institutional Trading of GoDaddy

A number of institutional investors and hedge funds have recently made changes to their positions in GDDY. Rachor Investment Advisory Services LLC acquired a new position in GoDaddy during the 4th quarter valued at approximately $25,000. Activest Wealth Management lifted its stake in GoDaddy by 6,600.0% in the fourth quarter. Activest Wealth Management now owns 201 shares of the technology company’s stock valued at $25,000 after buying an additional 198 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. bought a new stake in GoDaddy in the fourth quarter valued at $25,000. Brown Brothers Harriman & Co. boosted its holdings in shares of GoDaddy by 145.6% during the third quarter. Brown Brothers Harriman & Co. now owns 253 shares of the technology company’s stock valued at $35,000 after acquiring an additional 150 shares during the period. Finally, Harbour Investments Inc. boosted its holdings in shares of GoDaddy by 191.0% during the fourth quarter. Harbour Investments Inc. now owns 259 shares of the technology company’s stock valued at $32,000 after acquiring an additional 170 shares during the period. 90.28% of the stock is currently owned by institutional investors and hedge funds.

GoDaddy Stock Down 21.1%

The firm’s 50-day moving average price is $86.79 and its 200 day moving average price is $88.83. The firm has a market cap of $10.38 billion, a P/E ratio of 12.41, a price-to-earnings-growth ratio of 0.95 and a beta of 0.89. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 15.86.

GoDaddy (NYSE:GDDY) last issued its quarterly earnings data on Thursday, July 30th. The technology company reported $1.83 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.14. The firm had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.29 billion. GoDaddy had a net margin of 17.32% and a return on equity of 366.90%. GoDaddy’s quarterly revenue was up 6.6% compared to the same quarter last year. During the same period last year, the firm posted $1.41 EPS. As a group, research analysts expect that GoDaddy Inc. will post 7.15 earnings per share for the current year.

GoDaddy Company Profile

GoDaddy is a technology company that provides a suite of online services aimed primarily at small businesses, entrepreneurs and individuals looking to establish and grow an online presence. The company’s core activities include domain name registration and aftermarket services, a range of website hosting options, and tools for building, managing and promoting websites. Its product mix is designed to simplify the technical aspects of running a website so customers can focus on their businesses.

Product and service offerings span website builders and managed WordPress hosting, shared and dedicated hosting, e-commerce capabilities, email and productivity solutions, SSL certificates and site security tools, and online marketing and search engine optimization services.