Godaddy (GDDY) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Godaddy (NYSE:GDDY) from a hold rating to a sell rating in a report released on Thursday morning.

According to Zacks, “GoDaddy faces significant competition and the company’s heavy debt burden along with surrounding controversies poses major challenges. Also, over the last one year, the stock has underperformed the industry it belongs to. However, GoDaddy's new mobile-optimized website builder, GoCentral, has been gaining momentum and will be contributing to the company's top line growth. The company intends to release additional new GoCentral verticals, markets and features throughout 2017. Additionally, we believe that the company’s investment in products, technology platform and customer care, as well as offering innovative and increasingly personalized products and services globally will drive shareholder value.”

Other research analysts also recently issued research reports about the stock. TheStreet raised shares of Godaddy from a c- rating to a b- rating in a report on Tuesday, November 7th. Oppenheimer reaffirmed a buy rating and issued a $53.00 price target (up previously from $50.00) on shares of Godaddy in a report on Tuesday, November 7th. Stifel Nicolaus increased their price target on shares of Godaddy from $41.00 to $44.00 and gave the company a hold rating in a report on Tuesday, November 7th. Jefferies Group increased their price target on shares of Godaddy from $55.00 to $58.00 and gave the company a buy rating in a report on Tuesday, November 7th. Finally, B. Riley reaffirmed a buy rating and issued a $53.00 price target on shares of Godaddy in a report on Tuesday, November 7th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus target price of $50.43.

Godaddy (NYSE:GDDY) traded up $0.44 on Thursday, hitting $51.67. 664,202 shares of the company’s stock traded hands, compared to its average volume of 834,390. Godaddy has a twelve month low of $34.58 and a twelve month high of $52.11. The company has a market cap of $8,597.16, a P/E ratio of 198.74, a PEG ratio of 5.40 and a beta of 0.65. The company has a debt-to-equity ratio of 5.15, a current ratio of 0.57 and a quick ratio of 0.57.

Godaddy (NYSE:GDDY) last released its quarterly earnings data on Monday, November 6th. The technology company reported $0.07 EPS for the quarter, meeting the consensus estimate of $0.07. Godaddy had a net margin of 2.34% and a return on equity of 7.89%. analysts forecast that Godaddy will post 0.27 earnings per share for the current year.

In other Godaddy news, insider Barbara J. Rechterman sold 35,000 shares of the firm’s stock in a transaction dated Wednesday, October 25th. The shares were sold at an average price of $45.26, for a total value of $1,584,100.00. Following the completion of the sale, the insider now owns 50,427 shares of the company’s stock, valued at $2,282,326.02. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Nima Kelly sold 699 shares of the firm’s stock in a transaction dated Friday, December 8th. The stock was sold at an average price of $48.48, for a total transaction of $33,887.52. Following the completion of the sale, the executive vice president now directly owns 28,235 shares of the company’s stock, valued at approximately $1,368,832.80. The disclosure for this sale can be found here. In the last three months, insiders sold 7,852,345 shares of company stock valued at $371,099,712. 22.68% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. FMR LLC increased its position in shares of Godaddy by 40.9% during the second quarter. FMR LLC now owns 10,839,221 shares of the technology company’s stock worth $459,800,000 after acquiring an additional 3,148,349 shares during the period. Vanguard Group Inc. increased its position in shares of Godaddy by 26.8% during the second quarter. Vanguard Group Inc. now owns 7,553,811 shares of the technology company’s stock worth $320,434,000 after acquiring an additional 1,598,137 shares during the period. Capital International Investors increased its position in shares of Godaddy by 628.1% during the third quarter. Capital International Investors now owns 3,715,574 shares of the technology company’s stock worth $161,665,000 after acquiring an additional 3,205,274 shares during the period. BlackRock Inc. increased its position in shares of Godaddy by 33.1% during the second quarter. BlackRock Inc. now owns 2,773,646 shares of the technology company’s stock worth $117,659,000 after acquiring an additional 689,501 shares during the period. Finally, First Trust Advisors LP increased its position in shares of Godaddy by 48.2% during the third quarter. First Trust Advisors LP now owns 2,634,529 shares of the technology company’s stock worth $114,628,000 after acquiring an additional 856,259 shares during the period. 84.43% of the stock is owned by institutional investors and hedge funds.

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About Godaddy

GoDaddy Inc is a technology provider to small businesses, Web design professionals and individuals. The Company delivers cloud-based products and personalized customer care. It operates a domain marketplace, where its customers can find the digital real estate that matches their idea. It provides Website building, hosting and security tools to help customers construct and protect online presence.

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