How does GoDaddy Inc. (GDDY) change from a tortoise to a hare?

GoDaddy Inc. (NYSE: GDDY) stock jumped 2.54% on Friday to $77.49 against a previous-day closing price of $75.57. With 1.05 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.28 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $80.00 whereas the lowest price it dropped to was $75.75. The 52-week range on GDDY shows that it touched its highest point at $88.32 and its lowest point at $64.81 during that stretch. It currently has a 1-year price target of $101.60. Beta for the stock currently stands at 0.95.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GDDY was up-trending over the past week, with a rise of 6.75%, but this was up by 7.49% over a month. Three-month performance dropped to -5.64% while six-month performance fell -1.35%. The stock lost -7.20% in the past year, while it has lost -8.68% so far this year. A look at the trailing 12-month EPS for GDDY yields 1.77 with Next year EPS estimates of 2.79. For the next quarter, that number is 0.49. This implies an EPS growth rate of 148.20% for this year and 32.15% for next year. EPS is expected to grow by 30.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 54.70%.

Float and Shares Shorts:

At present, 164.32 million GDDY shares are outstanding with a float of 161.39 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.67 million, which was 1.65% higher than short shares on Jun 14, 2022. In addition to Mr. Amanpal Singh Bhutani as the firm’s CEO & Director, Mr. Mark McCaffrey serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 101.73% of GDDY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.37% of GDDY, in contrast to 50.42% held by mutual funds. Shares owned by individuals account for 5.60%. As the largest shareholder in GDDY with 9.82% of the stake, The Vanguard Group, Inc. holds 15,875,453 shares worth 15,875,453. A second-largest stockholder of GDDY, Capital Research & Management Co, holds 15,180,010 shares, controlling over 9.39% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in GDDY, holding 13,754,555 shares or 8.50% stake. With a 4.92% stake in GDDY, the American Funds New Perspective Fu is the largest stakeholder. A total of 7,951,327 shares are owned by the mutual fund manager. The Janus Henderson Enterprise Fund, which owns about 3.57% of GDDY stock, is the second-largest Mutual Fund holder. It holds 5,769,561 shares valued at 401.33 million. Vanguard Total Stock Market Index holds 2.95% of the stake in GDDY, owning 4,772,174 shares worth 331.95 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GDDY since 11 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GDDY analysts setting a high price target of $114.00 and a low target of $91.00, the average target price over the next 12 months is $100.89. Based on these targets, GDDY could surge 47.12% to reach the target high and rise by 17.43% to reach the target low. Reaching the average price target will result in a growth of 30.2% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GDDY will report FY 2022 earnings on 02/16/2023. Analysts have provided yearly estimates in a range of $2.56 being high and $1.82 being low. For GDDY, this leads to a yearly average estimate of $2.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. GoDaddy Inc. reported $0.56 EPS against a consensus estimate of $0.56. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $0.66 and the low estimate is $0.46. The average estimate for the next quarter is thus $0.54.

Summary of Insider Activity:

Insiders traded GDDY stock several times over the past three months with 8 Buys and 5 Sells. In these transactions, 25,722 shares were bought while 13,352 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 230,846 while 71,292 shares were sold.

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