On October 2, 2023, Roger Chen, the Chief Operating Officer (COO) of GoDaddy Inc (GDDY, Financial), sold 5,000 shares of the company. This move is part of a trend for the insider, who has sold a total of 16,125 shares over the past year and made no purchases.
GoDaddy Inc is a leading provider of internet domain registration and web hosting services. The company also offers a suite of business tools, including email marketing and search engine optimization, to help businesses establish and grow their online presence. With a market cap of $10.83 billion, GoDaddy Inc is a significant player in the internet services industry.
The insider's recent sell-off is part of a broader trend within GoDaddy Inc. Over the past year, there have been 38 insider sells and no insider buys. This trend is illustrated in the following chart:
The relationship between insider trading and stock price is complex. While insider selling can sometimes indicate a lack of confidence in the company's future prospects, it can also be a personal decision based on the insider's financial needs or investment strategy. In this case, the insider's consistent selling over the past year suggests a strategic decision rather than a reaction to short-term market conditions.
On the day of the insider's recent sell, GoDaddy Inc's shares were trading at $74.31, giving the company a price-earnings ratio of 35.63. This is higher than the industry median of 26.99 but lower than the company's historical median price-earnings ratio.
According to GuruFocus Value, GoDaddy Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.8, based on a GF Value of $92.88. The GF Value is an estimate of the stock's intrinsic value, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The GF Value is illustrated in the following chart:
In conclusion, while the insider's consistent selling over the past year may raise some concerns, the stock's modest undervaluation according to GuruFocus Value suggests that GoDaddy Inc may still be a good investment opportunity. As always, investors should conduct their own research and consider their own financial situation before making investment decisions.
