Chief Accounting Officer At GoDaddy Sells $316K Of Stock

Making a noteworthy insider sell on December 11, Phontip Palitwanon, Chief Accounting Officer at GoDaddy GDDY, is reported in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Palitwanon executed a sale of 1,554 shares of GoDaddy with a total value of $316,863.

The latest market snapshot at Thursday morning reveals GoDaddy shares down by 0.32%, trading at $207.66.

Get to Know GoDaddy Better

GoDaddy is a provider of 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: GoDaddy displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 7.28%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 64.5%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): GoDaddy's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.36.

Debt Management: With a high debt-to-equity ratio of 10.97, GoDaddy faces challenges in effectively managing its debt levels, indicating potential financial strain.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 16.72 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.76 is above industry norms, reflecting an elevated valuation for GoDaddy's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 32.65 positions the company as being more valued compared to industry benchmarks.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Why Insider Activity Matters in Finance

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.