Director Of Godaddy Trades $2.4M In Company Stock

Charles Robel, Director at Godaddy GDDY, made a large buy and sell of company shares on November 5, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission reports that on November 5, Charles Robel bought 30,000 Godaddy shares at a price of $7.40 per share, for a total of $222,069. They then sold their shares on the same day in the open market at a price of $74.16 to raise a total of $2,224,692 from the sale.

Robel still owns a total of 67,808 shares of Godaddy worth, $4,830,031.

Godaddy shares are trading down 0.67% at $71.23 at the time of this writing on Wednesday morning.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. 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.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Godaddy's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.