Phontip Palitwanon, Chief Accounting Officer at GoDaddy GDDY, reported an insider sell on June 12, according to a new SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Palitwanon sold 2,173 shares of GoDaddy. The total transaction value is $386,511.
GoDaddy‘s shares are actively trading at $175.0, experiencing a down of 1.56% during Friday’s morning session.
Delving into GoDaddy’s Background
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’s Economic Impact: An Analysis
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.
Interpreting Earnings Metrics:
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Gross Margin: The company maintains a high gross margin of 63.12%, indicating strong cost management and 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.
Market Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 34.19 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.54, 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): At 25.32, GoDaddy’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Analysis: With a profound presence, the company’s market capitalization is above industry averages. This reflects substantial size and strong market recognition.
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Illuminating the Importance of Insider Transactions
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Cracking Transaction Codes
When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.
