Quantinno Capital Management LP, a top institutional investor, has made an impressive move in the financial world by increasing its stake in GoDaddy Inc. (NYSE:GDDY) by a staggering 89.9%. This move is based on their analysis of the technology company’s recent quarterly earnings report and projections for future growth.
According to the most recent 13F filing with the Securities & Exchange Commission, Quantinno Capital Management LP currently holds 20,521 shares of GoDaddy, worth $1,535,000 at the end of the reporting period. This bold play reflects their unwavering confidence in GoDaddy and its market position as a domain name registration and web hosting services provider.
GoDaddy recently released its quarterly earnings results on May 4th. The technology company reported $0.30 EPS for the quarter, which fell short of analysts’ consensus estimates of $0.52 by ($0.22). The company had a net margin of 8.03% and a negative return on equity of 95.00%.
The A and C segment consists of sales of products containing proprietary software, commerce products and third-party email and productivity solutions. While some may perceive this report as indicative of a lackluster performance from GoDaddy, industry experts can attest that these numbers are not reflective of any significant flaws or deficiencies within their business model.
In fact, GoDaddy remains at the forefront of website building, hosting, and security tools within the industry. With revenue totaling $1.04 billion for the quarter–higher than previously predicted–they garnered an impressive growth rate compared to figures from last year’s same quarter. It is predicted that they will post 2.37 earnings per share for this fiscal year.
The recent boost in shares acquired by Quantinno Capital Management LP demonstrates their unwavering faith in GoDaddy’s capabilities both now and in the future. It is quite possible that other institutional investors may follow their lead as they focus on not only acquiring strong businesses to strengthen revenue streams but also those with potential long-term growth prospects.
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Institutional Investors Boost Ownership of GoDaddy, Inc. as Company Provides Web Hosting and Domain Registration Services
GoDaddy, Inc., a company providing web hosting and domain name registration services, has recently seen an increase in stake ownership from institutional investors and hedge funds. Commerce Bank purchased an additional 142 shares of GoDaddy during the last quarter, leading to an increase of 0.3% in their stake. CAPROCK Group Inc., IFP Advisors Inc., Allworth Financial LP, and Intech Investment Management LLC also boosted their stakes by purchasing additional shares. Institutional investors now own 97.32% of the company’s stock.
On Friday, June 11, NYSE:GDDY opened at $72.01 with a market cap of $11.13 billion. The company’s PE ratio stands at 34.45 with a P/E/G ratio of 2.03 and a beta of 0.97. While its 52-week low is $64.65 and its high is $85.32; currently the stock’s fifty-day moving average stands at $73 .95 while two hundred-day simple moving average is at $75.67.
The company operates through two segments- Applications and Commerce (A&C) and Core Platform (Core). The A&C segment mainly involves sales of products containing proprietary software, commerce products as well as third-party email and productivity solutions.
In April this year, CFO Mark Mccaffrey sold off some shares valued at approximately $77 apiece to gain around $71k while CEO Amanpal Singh Bhutani sold around 1,987 shares for about $77 per share earning more than $153k; insiders have reportedly sold over 7 thousand shares over the previous three months.
Wall Street analysts had this to say on GoDaddy: Raymond James recently raised their price target on GoDaddy from $88 to $94 giving it the rating “strong-buy”; Benchmark reaffirmed its “buy” rating for GoDaddy and set a $100 price target on the stock. Piper Sandler, however, lowered its price target for the stock while Barclays did the same but from $100 to $98. Currently, GoDaddy has an average rating of “Moderate Buy” and a consensus target price of $91.91 according to data obtained from Bloomberg.com.
Institutional investments are a vital part in determining the direction that stocks move towards. This recent boost in stakeholders is a solid indication that investors have confidence in GoDaddy’s future prospects in providing web hosting and domain name registration services. Knowing this positive reinforcement, analysts will surely keep an eye on how the company progresses over time, and whether or not it can continue attracting investment and growing steadily whilst at it.
