Godaddy Stock Buy Hold or Sell Recommendation

GDDY Stock  USD 75.73  0.66  0.88%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Godaddy is 'Strong Hold'. Macroaxis provides Godaddy buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Godaddy positions. The advice algorithm takes into account all of Godaddy's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Godaddy's buy-and-hold perspective. Check out Godaddy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Godaddy Stock please use our How to Invest in Godaddy guide.In addition, we conduct extensive research on individual companies such as Godaddy and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Godaddy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price.

Execute Godaddy Buy or Sell Advice

The Godaddy recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Godaddy. Macroaxis does not own or have any residual interests in Godaddy or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Godaddy's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell GodaddyBuy Godaddy
Strong Hold

Market Performance

Details

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Godaddy has a Risk Adjusted Performance of 0.0087, Jensen Alpha of 0.0052, Total Risk Alpha of 0.0187, Sortino Ratio of 0.0078 and Treynor Ratio of (0.003863)
Macroaxis provides unbiased trade recommendations on Godaddy that should be used to complement current analysts and expert consensus on Godaddy. Our advice engine determines the entity's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Godaddy is not overpriced, please check out all Godaddy fundamentals, including its cash and equivalents, number of employees, and the relationship between the price to sales and cash flow from operations . Given that Godaddy has a price to earning of 36.04 X, we strongly advise you to confirm Godaddy market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Godaddy Trading Alerts and Improvement Suggestions

The company currently holds 3.81 B in liabilities. Godaddy has a current ratio of 0.62, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Godaddy until it has trouble settling it off, either with new capital or with free cash flow. So, Godaddy's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Godaddy sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Godaddy to invest in growth at high rates of return. When we think about Godaddy's use of debt, we should always consider it together with cash and equity.
Godaddy has a very strong financial position based on the latest SEC filings
Over 98.0% of the company shares are owned by institutional investors
Latest headline from finance.yahoo.com: GoDaddy UCLA Research Reveals a Single Microbusiness Creates Nearly 7 Local Jobs

Godaddy Returns Distribution Density

The distribution of Godaddy's historical returns is an attempt to chart the uncertainty of Godaddy's future price movements. The chart of the probability distribution of Godaddy stock daily returns describes the distribution of returns around its average expected value. We use Godaddy price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Godaddy returns is essential to provide solid investment advice for Godaddy.
Mean Return0.008126Value At Risk-2.19
Potential Upside1.79Standard Deviation1.32
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Godaddy historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Godaddy Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Godaddy is soaring high without any particular reason? This is usually happening because many institutional investors.are aggressively trading Godaddy backward and forwards among themselves. Godaddy's institutional investor refers to the entity that pools money to purchase Godaddy's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Last TransactionTypeSharesValue
Wellington Management Group Llp2023-03-31Common Shares15.5 M1.2 B
Vanguard Group Inc2023-03-31Common Shares15 M1.2 B
Capital International Investors2023-03-31Common Shares13.7 M1.1 B
Starboard Value Lp2023-03-31Common Shares10.1 M781.8 M
Blackrock Inc2023-03-31Common Shares8.5 M661.6 M
Janus Henderson Group Plc2023-03-31Common Shares7.4 M575.4 M
Morgan Stanley2023-03-31Common Shares6.2 M479.4 M
Ameriprise Financial Inc2023-03-31Common Shares4.9 M383.5 M
Atlanta Capital Management Co L L C2022-09-30Common Shares5.2 M368.9 M
Fmr Llc2023-03-31Common Shares3.9 M300.4 M
State Street Corp2023-03-31Common Shares3.8 M294.3 M
Note, although Godaddy's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Godaddy Cash Flow Accounts

201820192020202120222023 (projected)
Capital Expenditure(87.7 M)(87.6 M)(66.5 M)(51.1 M)(59.7 M)(64.41 M)
Depreciation Amortization and Accretion234.1 M209.7 M202.7 M199.6 M194.6 M207.55 M
Net Cash Flow or Change in Cash and Cash Equivalents349.7 M130.4 M(297.6 M)490.5 M(481.7 M)(494.38 M)
Net Cash Flow Business Acquisitions and Disposals(147.2 M)(40.3 M)(424.7 M)(367.7 M)(72.5 M)(78.22 M)
Issuance Purchase of Equity Shares21.9 M(430.1 M)(512.1 M)(495.3 M)(1.26 B)(1.3 B)
Issuance Repayment of Debt Securities(31.7 M)(29.5 M)709.4 M765.2 M(68.6 M)(70.41 M)
Net Cash Flow from Financing47 M(456.9 M)(581.7 M)298.1 M(1.33 B)(1.36 B)
Net Cash Flow from Investing(254.8 M)(135.3 M)(482.3 M)(635.6 M)(132 M)(142.42 M)
Net Cash Flow Investment Acquisitions and Disposals(6.3 M)(4.2 M)23.7 M(40 M)(36 M)(36.95 M)
Net Cash Flow from Operations559.8 M723.4 M764.6 M829.3 M979.7 M800.79 M
Effect of Exchange Rate Changes on Cash(2.3 M)(800 K)1.8 M(1.3 M)(2.7 M)(2.77 M)
Share Based Compensation125.5 M147 M191.5 M207.9 M264.4 M285.27 M

Godaddy Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Godaddy or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Godaddy's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Godaddy stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.005209
β
Beta against NYSE Composite0.48
σ
Overall volatility
1.34
Ir
Information ratio 0.0096

Godaddy Volatility Alert

Godaddy has relatively low volatility with skewness of -1.19 and kurtosis of 2.5. However, we advise all investors to independently investigate Godaddy to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Godaddy's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Godaddy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Godaddy Implied Volatility

Godaddy's implied volatility exposes the market's sentiment of Godaddy stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Godaddy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Godaddy stock will not fluctuate a lot when Godaddy's options are near their expiration.

Godaddy Fundamentals Vs Peers

Comparing Godaddy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Godaddy's direct or indirect competition across all of the common fundamentals between Godaddy and the related equities. This way, we can detect undervalued stocks with similar characteristics as Godaddy or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Godaddy's fundamental indicators could also be used in its relative valuation, which is a method of valuing Godaddy by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Godaddy to competition
FundamentalsGodaddyPeer Average
Return On Equity0.68 %(0.31) %
Return On Asset0.0468 %(0.14) %
Profit Margin0.08 %(1.27) %
Operating Margin0.13 %(5.51) %
Current Valuation15.1 B16.62 B
Shares Outstanding154.2 M571.82 M
Shares Owned by Insiders0.28 %10.09 %
Shares Owned by Institutions98.24 %39.21 %
Number of Shares Shorted2.36 M4.71 M
Price to Earning36.04 X28.72 X
Price to Book24.35 X9.51 X
Price to Sales2.80 X11.42 X
Revenue4.09 B9.43 B
Gross Profit2.61 B27.38 B
EBITDA716.7 M3.9 B
Net Income352.9 M570.98 M
Cash and Equivalents916.5 M2.7 B
Cash per Share5.86 X5.01 X
Total Debt3.81 B5.32 B
Current Ratio0.63 X2.16 X
Book Value Per Share(2.32) X1.93 K
Cash Flow from Operations979.7 M971.22 M
Short Ratio1.85 X4.00 X
Earnings Per Share2.12 X3.12 X
Price to Earnings To Growth1.56 X4.89 X
Target Price92.99
Number of Employees6.88 K18.84 K
Beta0.98-0.15
Market Capitalization11.8 B19.03 B
Total Asset6.97 B29.47 B
Retained Earnings(2.42 B)9.33 B
Working Capital(877.2 M)1.48 B
Current Asset693.9 M9.34 B
Note: Sale by Ray Winborne of 68900 shares of Godaddy [view details]

About Godaddy Buy or Sell Advice

When is the right time to buy or sell Godaddy? Buying financial instruments such as Godaddy Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2020 2021 2022 2023 (projected)
Accounts Payable51 M85.2 M130.9 M141.23 M
Receivables41.8 M63.6 M60.1 M64.84 M

Use Investing Ideas to Build Portfolios

In addition to having Godaddy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Natural Foods
Natural Foods Theme
Companies producing natural foods including dairy products and different types of meets. The Natural Foods theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Natural Foods Theme or any other thematic opportunities.
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Check out Godaddy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Godaddy Stock please use our How to Invest in Godaddy guide. Note that the Godaddy information on this page should be used as a complementary analysis to other Godaddy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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When running Godaddy's price analysis, check to measure Godaddy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Godaddy is operating at the current time. Most of Godaddy's value examination focuses on studying past and present price action to predict the probability of Godaddy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Godaddy's price. Additionally, you may evaluate how the addition of Godaddy to your portfolios can decrease your overall portfolio volatility.
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Is Godaddy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Godaddy. If investors know Godaddy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Godaddy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.27) 
Earnings Share
2.12
Revenue Per Share
26.399
Quarterly Revenue Growth
0.033
Return On Assets
0.0468
The market value of Godaddy is measured differently than its book value, which is the value of Godaddy that is recorded on the company's balance sheet. Investors also form their own opinion of Godaddy's value that differs from its market value or its book value, called intrinsic value, which is Godaddy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Godaddy's market value can be influenced by many factors that don't directly affect Godaddy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Godaddy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Godaddy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Godaddy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.