GoDaddy Inc. (NYSE:GDDY) CEO Amanpal Singh Bhutani recently executed a sale of company stock, according to a new SEC filing. The transaction involved the disposal of 4,500 shares at a price of $139.79 per share, totaling approximately $629,055.
The sale, which took place on July 1, 2024, was conducted under a pre-arranged 10b5-1 trading plan. This type of plan allows company insiders to sell shares at predetermined times to avoid any accusations of trading on non-public, material information. Following the transaction, Bhutani still retains ownership of 365,398 shares of GoDaddy's Class A Common Stock.
Investors often monitor insider sales as they may offer insights into an executive’s perspective on the company’s current valuation and future prospects. However, it is also not uncommon for executives to sell portions of their holdings for reasons such as diversification or liquidity.
GoDaddy, a leading internet domain registrar and web hosting company, has its headquarters in Tempe, Arizona. The company is known for providing a variety of online services to businesses and individuals looking to establish their presence on the web.
The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of the company's executives and major shareholders.
In other recent news, GoDaddy Inc has been making significant strides in its financial performance and strategic positioning. Following a strong first quarter in 2024, the company reported a total revenue of $1.1 billion, marking a 7% growth. In addition, GoDaddy's free cash flow saw substantial increases, with unlevered free cash flow growing 18% to $359 million and free cash flow growing 26% to $327 million.
The company has also raised the lower end of its full-year revenue guidance to between $4.5 billion and $4.56 billion, indicating a growth of 6.5% at the midpoint. In other developments, GoDaddy has secured a $1 billion tranche of term loans set to mature in 2031, which it plans to use for debt refinancing.
Analysts at Baird and UBS have responded positively to these developments. Baird increased its price target for GoDaddy shares to $175, maintaining an Outperform rating, while UBS raised its price target to $130, keeping a Neutral rating on the stock. Finally, GoDaddy, along with CrowdStrike Holdings (NASDAQ:CRWD) Inc and KKR & Co, is set to join the S&P 500 index, as announced by the S&P Dow Jones Indices.
InvestingPro Insights
Amidst the news of GoDaddy Inc. (NYSE:GDDY) CEO Amanpal Singh Bhutani's recent stock sale, a glance at the company's financials through InvestingPro reveals a mixed picture. GoDaddy has been performing robustly in terms of revenue growth, with the last twelve months as of Q1 2024 witnessing a 4.9% increase, and an even more impressive quarterly revenue growth of 7.0% in Q1 2024. This indicates a steady upward trajectory in the company's ability to generate income from its core business operations.
However, an InvestingPro Tip suggests that net income is expected to drop this year, which may be a point of concern for investors looking at long-term profitability. Despite this, GoDaddy has shown a strong shareholder yield, which could be a result of the management's aggressive share buyback program, as another InvestingPro Tip indicates. Such strategic financial decisions often reflect a management's confidence in the company's valuation and future growth potential.
Investors considering GoDaddy's stock will note its high return over the last year, with a 90.6% price total return, and a significant 40.2% return over the past six months. The company's stock is also trading near its 52-week high, at 98.85% of this threshold, which could suggest market optimism surrounding the company's performance and outlook.
For those interested in a deeper analysis, InvestingPro offers additional insights on GoDaddy, including 16 more InvestingPro Tips that can be accessed by visiting https://www.investing.com/pro/GDDY. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and enhance your investment strategy with comprehensive data and expert analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.