On September 5, 2023, Mark Mccaffrey, the Chief Financial Officer (CFO) of GoDaddy Inc (GDDY, Financial), sold 812 shares of the company's stock. This move is part of a trend for the insider, who has sold a total of 21,690 shares over the past year and made no purchases.
GoDaddy Inc is a leading technology provider dedicated to small businesses, web design professionals, and individuals. The company provides tools to help customers build, manage, and use websites. GoDaddy's services include domain name registration, website hosting, website building software, and e-commerce solutions.
The insider's recent sale comes at a time when GoDaddy Inc's stock is trading at $73.57 per share, giving the company a market cap of $10.93 billion. The price-earnings ratio stands at 35.98, higher than the industry median of 27.86 but lower than the company's historical median price-earnings ratio.
Let's take a closer look at the insider's trading activity and its potential implications for the stock's price.
As shown in the insider trend image above, there have been no insider buys and 37 insider sells over the past year. This could suggest that insiders see the stock as overvalued, prompting them to sell their shares. However, it's also important to consider other factors, such as the insider's personal financial situation and the company's overall performance.
Now, let's examine the stock's valuation using the GuruFocus Value (GF Value).
With a price of $73.57 and a GF Value of $92.23, GoDaddy Inc has a price-to-GF-Value ratio of 0.8. This suggests that the stock is modestly undervalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, while the insider's recent sale might raise some eyebrows, the stock's modest undervaluation could present an attractive opportunity for investors. As always, it's crucial to conduct thorough research and consider multiple factors before making investment decisions.
