Investors Purchase High Volume of Call Options on GoDaddy (NYSE:GDDY)

Key Points

• GoDaddy call-option activity surged: Investors purchased 10,468 call options, 379% above the average volume of 2,187. Shares rose $3.48 to $100.55 during Monday trading.
• Recent earnings exceeded expectations: GoDaddy reported quarterly EPS of $1.83 versus the $1.69 consensus estimate, while revenue reached $1.30 billion and increased 6.6% year over year.
• Analyst sentiment remains positive but mixed: The stock has a “Moderate Buy” consensus rating and an average price target of $110.33, despite several analysts lowering targets or maintaining neutral ratings.

GoDaddy Inc. (NYSE:GDDY - Get Free Report) was the recipient of unusually large options trading on Monday. Stock investors bought 10,468 call options on the company. This is an increase of 379% compared to the average volume of 2,187 call options.

GoDaddy Stock Performance

Shares of NYSE GDDY traded up $3.48 during midday trading on Monday, hitting $100.55. 287,416 shares of the stock traded hands, compared to its average volume of 2,283,426. The firm has a market capitalization of $12.73 billion, a P/E ratio of 14.89, a PEG ratio of 0.87 and a beta of 0.90. GoDaddy has a one year low of $71.59 and a one year high of $150.47. The company has a debt-to-equity ratio of 561.10, a quick ratio of 0.63 and a current ratio of 0.63. The firm has a 50-day moving average of $89.29 and a two-hundred day moving average of $87.48.

GoDaddy (NYSE:GDDY - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The technology company reported $1.83 EPS for the quarter, topping the consensus estimate of $1.69 by $0.14. The company had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.29 billion. GoDaddy had a return on equity of 660.96% and a net margin of 17.83%.GoDaddy's revenue was up 6.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.41 earnings per share. On average, equities analysts forecast that GoDaddy will post 7.21 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have issued reports on GDDY shares. Wells Fargo & Company decreased their target price on shares of GoDaddy from $83.00 to $80.00 and set an "equal weight" rating for the company in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft downgraded shares of GoDaddy to a "buy" rating in a research report on Friday, July 31st. Wedbush decreased their price objective on shares of GoDaddy from $109.00 to $93.00 and set an "outperform" rating for the company in a report on Monday, August 3rd. Piper Sandler reiterated a "neutral" rating and set a $95.00 target price (up from $93.00) on shares of GoDaddy in a research note on Friday, July 31st. Finally, Cantor Fitzgerald restated a "neutral" rating and issued a $90.00 price target on shares of GoDaddy in a research note on Friday, July 31st. Nine research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $110.33.

Insider Buying and Selling

In related news, CEO Amanpal Singh Bhutani sold 4,500 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $83.15, for a total value of $374,175.00. Following the sale, the chief executive officer owned 517,247 shares in the company, valued at $43,009,088.05. This represents a 0.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Mccaffrey sold 3,500 shares of GoDaddy stock in a transaction on Monday, June 8th. The shares were sold at an average price of $82.92, for a total value of $290,220.00. Following the transaction, the chief financial officer owned 105,728 shares of the company's stock, valued at $8,766,965.76. The trade was a 3.20% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 23,484 shares of company stock valued at $2,059,489. 0.93% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GDDY. Rachor Investment Advisory Services LLC bought a new stake in GoDaddy during the 4th quarter worth approximately $25,000. Activest Wealth Management increased its stake in shares of GoDaddy by 6,600.0% in the fourth quarter. Activest Wealth Management now owns 201 shares of the technology company's stock worth $25,000 after purchasing an additional 198 shares in the last quarter. International Assets Investment Management LLC increased its stake in shares of GoDaddy by 93.8% in the first quarter. International Assets Investment Management LLC now owns 372 shares of the technology company's stock worth $30,000 after purchasing an additional 180 shares in the last quarter. Harbour Investments Inc. raised its position in shares of GoDaddy by 191.0% during the 4th quarter. Harbour Investments Inc. now owns 259 shares of the technology company's stock valued at $32,000 after purchasing an additional 170 shares during the period. Finally, Acuitas Investments LLC bought a new stake in shares of GoDaddy during the 1st quarter valued at $33,000. 90.28% of the stock is currently owned by institutional investors.

About GoDaddy

GoDaddy is a technology company that provides a suite of online services aimed primarily at small businesses, entrepreneurs and individuals looking to establish and grow an online presence. The company's core activities include domain name registration and aftermarket services, a range of website hosting options, and tools for building, managing and promoting websites. Its product mix is designed to simplify the technical aspects of running a website so customers can focus on their businesses.

Product and service offerings span website builders and managed WordPress hosting, shared and dedicated hosting, e-commerce capabilities, email and productivity solutions, SSL certificates and site security tools, and online marketing and search engine optimization services.

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