Godaddy’s (GDDY) Buy Rating Reiterated at SunTrust Banks

SunTrust Banks reissued their buy rating on shares of Godaddy (NYSE:GDDY) in a research note issued to investors on Friday. The firm currently has a $87.00 target price on the technology company’s stock.

“We maintain our BUY/$87 PT as we expect a strong 3Q, in line with Street expectations when the company reports on Tuesday, 11/6 (AMC). Key business metrics (sub growth, retention, ARPU, subscriber acquisition costs) are likely to show that GoDaddy’s fundamentals remained healthy in 3Q. We expect to get an update on Main Street Hub integration, competitive landscape, and M&A opportunities along with incremental progress towards LT goals for growth/ profitability laid out at the Analyst Day.”,” the firm’s analyst commented.

A number of other research analysts also recently issued reports on the company. Zacks Investment Research raised Godaddy from a hold rating to a buy rating and set a $84.00 price target for the company in a report on Tuesday, August 14th. Citigroup raised Godaddy from a neutral rating to a buy rating in a report on Thursday, October 11th. Wedbush reissued a neutral rating and issued a $85.00 price target on shares of Godaddy in a report on Thursday, September 13th. ValuEngine downgraded Godaddy from a strong-buy rating to a buy rating in a research note on Thursday, October 11th. Finally, Barclays upped their target price on Godaddy from $77.00 to $84.00 and gave the stock an overweight rating in a research note on Monday, July 23rd. One analyst has rated the stock with a sell rating, four have assigned a hold rating and fourteen have assigned a buy rating to the company. The company currently has a consensus rating of Buy and an average target price of $77.60.

Shares of NYSE GDDY opened at $73.62 on Friday. The company has a market capitalization of $12.66 billion, a P/E ratio of 175.29, a PEG ratio of 8.18 and a beta of 0.84. Godaddy has a 52 week low of $45.87 and a 52 week high of $84.97. The company has a debt-to-equity ratio of 3.56, a quick ratio of 0.73 and a current ratio of 0.73.

Godaddy (NYSE:GDDY) last issued its earnings results on Thursday, August 2nd. The technology company reported $0.11 EPS for the quarter, beating the Zacks’ consensus estimate of $0.08 by $0.03. Godaddy had a return on equity of 8.78% and a net margin of 5.83%. The firm had revenue of $652.00 million for the quarter, compared to analyst estimates of $643.59 million. During the same quarter in the prior year, the firm earned $0.10 earnings per share. Godaddy’s revenue for the quarter was up 16.8% on a year-over-year basis. Sell-side analysts predict that Godaddy will post 0.53 earnings per share for the current fiscal year.

In other Godaddy news, major shareholder 2006 Fund (Gdg) L.P. Kkr sold 3,500,000 shares of the company’s stock in a transaction on Friday, August 17th. The stock was sold at an average price of $75.61, for a total value of $264,635,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Arne Josefsberg sold 33,803 shares of the company’s stock in a transaction on Tuesday, October 23rd. The shares were sold at an average price of $73.45, for a total value of $2,482,830.35. Following the completion of the sale, the executive vice president now owns 33,348 shares of the company’s stock, valued at $2,449,410.60. The disclosure for this sale can be found here. Over the last three months, insiders sold 7,788,160 shares of company stock valued at $589,627,630. 7.63% of the stock is owned by corporate insiders.

Large investors have recently modified their holdings of the business. Public Employees Retirement Association of Colorado grew its holdings in shares of Godaddy by 4.2% during the 2nd quarter. Public Employees Retirement Association of Colorado now owns 19,627 shares of the technology company’s stock worth $1,386,000 after purchasing an additional 793 shares during the period. CIBC Asset Management Inc grew its holdings in shares of Godaddy by 13.8% during the 3rd quarter. CIBC Asset Management Inc now owns 6,819 shares of the technology company’s stock worth $569,000 after purchasing an additional 826 shares during the period. Comerica Bank grew its holdings in shares of Godaddy by 16.9% during the 2nd quarter. Comerica Bank now owns 5,832 shares of the technology company’s stock worth $456,000 after purchasing an additional 842 shares during the period. WINTON GROUP Ltd grew its holdings in shares of Godaddy by 11.4% during the 3rd quarter. WINTON GROUP Ltd now owns 9,724 shares of the technology company’s stock worth $811,000 after purchasing an additional 993 shares during the period. Finally, World Asset Management Inc grew its holdings in shares of Godaddy by 25.2% during the 2nd quarter. World Asset Management Inc now owns 5,394 shares of the technology company’s stock worth $381,000 after purchasing an additional 1,085 shares during the period. Institutional investors own 93.88% of the company’s stock.

Godaddy Company Profile

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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