In its second-quarter disclosure with the Securities & Exchange Commission (SEC), Nordea Investment Management AB revealed that it has reduced its position in GoDaddy Inc. (NYSE:GDDY) by 18.1%. The institutional investor now owns 122,704 shares of GoDaddy after selling 27,200 shares during the quarter. This significant reduction in holdings indicates a lack of confidence in the technology company’s future prospects.
As of the most recent SEC filing, Nordea Investment Management AB’s ownership of GoDaddy is estimated to be approximately 0.08%, with an approximate value of $9,170,000. This decrease confirms speculation surrounding the declining interest in investing in GoDaddy among institutional investors.
GoDaddy recently released its earnings results for the second quarter on Thursday, August 3rd. The company reported earnings per share (EPS) of $0.63 for the quarter, surpassing analysts’ consensus estimates of $0.55 by $0.08. However, despite this positive performance on EPS, GoDaddy had a negative return on equity of 83.74% and a net margin of 7.78%. Additionally, its revenue for the quarter stood at $1.05 billion, aligning closely with analyst expectations.
Equities research analysts predict that GoDaddy Inc.’s earnings per share for the current year will amount to approximately 2.81%. While this figure may appear promising at first glance, investors should exercise caution when interpreting these projections given Nordea Investment Management AB’s recent decision to reduce its stake in the company.
The lowered position by Nordea Investment Management AB begs further examination into GoDaddy’s overall financial health and long-term prospects within the market segment it operates in. Market observers will be closely watching future developments concerning this technology company to gain greater insight into its future growth potential and assess whether it remains an attractive investment opportunity.
Furthermore, it remains to be seen whether other institutional investors will follow Nordea Investment Management AB’s lead and reduce their positions in GoDaddy. Their actions would further exemplify the overall sentiment toward the company and influence market perception.
Investors are encouraged to remain informed about the latest developments surrounding GoDaddy, as evidenced by reports such as this one. Such information may prove invaluable in making well-informed investment decisions, given the evolving market dynamics and the uncertainties of the economic climate.
In conclusion, Nordea Investment Management AB’s recent reduction in its position in GoDaddy Inc. has raised questions about the technology company’s future prospects. While it reported better-than-expected earnings per share for its most recent quarter, concerns remain regarding its negative return on equity and net margin. Investors should exercise caution when considering investments in GoDaddy and continue monitoring relevant financial reports and disclosures to make informed investment decisions.
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GoDaddy (GDDY) Stock Attracts Attention from Hedge Funds and Analysts
GoDaddy (GDDY) has recently attracted the attention of several hedge funds and institutional investors. Among them, Morgan Stanley increased its stake in the technology company by a staggering 517.4% during the fourth quarter, now owning a total of 6,125,512 shares worth $458,311,000. Starboard Value LP also boosted its position in GoDaddy by 23.9%, owning 10,233,055 shares valued at $765,637,000. Additionally, Norges Bank and Pacer Advisors Inc. acquired new stakes in GoDaddy during the fourth quarter and first quarter respectively.
Goldman Sachs Group Inc., another prominent institutional investor, witnessed a significant 108.7% increase in their position during the first quarter. They now own 1,396,699 shares of GoDaddy’s stock valued at $116,903,000. It is noteworthy to mention that institutional investors currently hold 95.03% of the company’s stock.
Several analysts have issued reports on GDDY shares as well, assessing its performance and providing recommendations to potential investors. Piper Sandler reaffirmed a “neutral” rating with a target price of $84.00 per share. Barclays also released a research report lowering their target price from $98.00 to $95.00 while reiterating an “overweight” rating on the stock.
Benchmark analysts maintained their “buy” rating on GoDaddy and set a target price of $95.00 per share in their report dated September 13th. B.Riley raised their price objective even further from $102.00 to an impressive $107.00 per share.
Another analysis conducted by StockNews.com upgraded GoDaddy’s rating from hold to buy in their research report on September 5th.
With all these assessments considered together with Bloomberg.com’s consensus rating of “Moderate Buy,” it is clear that the majority of analysts and experts tout GoDaddy as a favorable investment option. The stock currently has an average price target of $92.45.
In recent news, insider Michele Lau sold 5,500 shares of GoDaddy’s stock at an average price of $70.49, amounting to a total value of $387,695.00. Following this transaction, Lau now owns 67,280 shares in the company valued at approximately $4,742,567.20.
CEO Amanpal Singh Bhutani also made a significant sale of 3,472 shares on September 8th for a total value of $260,781.92. After the transaction, Bhutani holds 266,489 shares in the company worth around $20,015,988.79.
Notably, insiders have sold a cumulative total of 44,419 shares worth $3,290,478 within the span of the last 90 days with insiders holding just 0.54% percent of the company’s stock.
Currently trading at $75.01 per share on September 20th with a market capitalization of $11.04 billion and a price-to-earnings ratio standing at 36.24 along with a beta value of 0.95; GoDaddy Inc.’s stock has experienced both highs and lows over the past year.
Amidst all the activity surrounding GoDaddy’s stock among institutional investors and the recommendations provided by analysts regarding its performance and potential returns; it is clear that GoDaddy remains an intriguing option for investors seeking opportunities within the technology sector but each investor should perform their due diligence before making any investment decisions
