It was reported on May 6, that Mark McCaffrey, Chief Financial Officer at GoDaddy GDDY executed a significant insider sell, according to an SEC filing.
What Happened: McCaffrey opted to sell 37,500 shares of GoDaddy, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction’s total worth stands at $6,785,521.
Monitoring the market, GoDaddy‘s shares up by 0.83% at $183.71 during Tuesday’s morning.
Unveiling the Story Behind GoDaddy
GoDaddy provides domain registration and aftermarket services, website hosting, security, design, and business productivity tools, commerce solutions, and domain registry services. The company primarily targets micro- to small businesses, website design professionals, registrar peers, and domain investors. Since acquiring payment processing platform Poynt in 2021, the company has expanded into omnicommerce solutions, including offering an online payment gateway and offline point-of-sale devices.
GoDaddy: Delving into Financials
Revenue Growth: Over the 3 months period, GoDaddy showcased positive performance, achieving a revenue growth rate of 7.74% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Navigating Financial Profits:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 63.12%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): GoDaddy’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.55.
Debt Management: GoDaddy’s debt-to-equity ratio stands notably higher than the industry average, reaching 19.46. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Valuation Analysis:
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Price to Earnings (P/E) Ratio: GoDaddy’s P/E ratio of 35.04 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.68, GoDaddy’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 25.88, GoDaddy presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
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Understanding the Significance of Insider Transactions
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes Worth Your Attention
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of GoDaddy’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
