GoDaddy's 0.7% Decline Ranks 471st in Volume Amid Analyst Buys and Short Bet

Generated by AI AgentAinvest Market Brief
Wednesday, Jul 30, 2025 6:19 pm ET1min read
GDDY--
Aime RobotAime Summary

- GoDaddy (GDDY) fell 0.70% on July 30, 2025, with $0.26B volume, ranking 471st in daily trading activity.

- Analysts gave a "Moderate Buy" rating (7 buys, 6 holds) despite a 32.38 P/E ratio exceeding the 26.50 market average.

- Institutional ownership at 90.28% faces pressure from 15.09% insider selling and 2.32% short interest (2.3 days to cover).

- Q2 earnings missed estimates by $0.08/share, while key insiders sold $12.24M in shares over the last quarter.

- A high-volume trading strategy (top 500 stocks) achieved 166.71% returns (2022-present) with a 1.14 Sharpe ratio.

On July 30, 2025, GoDaddyGDDY-- (GDDY) declined 0.70% with a trading volume of $0.26 billion, ranking 471st in daily trading activity. Analysts have assigned a "Moderate Buy" consensus rating based on seven buy ratings and six holds, with no sell ratings. The stock's projected earnings growth for the next year is 23.08%, though its price-to-earnings ratio of 32.38 exceeds the market average of 26.50, indicating potential overvaluation relative to broader market benchmarks. Institutional ownership remains strong at 90.28%, but recent insider selling has reduced their stake by 15.09% in the last month, signaling cautious investor sentiment.

Short interest in GoDaddy has risen notably, with 2.32% of its float sold short and a short interest ratio of 2.3 days to cover. This follows a 15.6% reduction in holdings by Seizert Capital Partners and other institutional investors. Key insiders, including COO Roger Chen and CAO Phontip Palitwanon, have also sold shares, collectively divesting $12.24 million in the last quarter. Despite a 8.6% year-over-year revenue increase, Q2 2025 earnings missed estimates by $0.08 per share, raising concerns about near-term performance. Analysts have varied their price targets, with JPMorganJPM-- upgrading to $240 and Jefferies lowering to $185, reflecting divergent views on valuation and growth prospects.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to the present, significantly outperforming the benchmark return of 29.18%. This approach generated an excess return of 137.53% and a compound annual growth rate (CAGR) of 31.89%, underscoring its effectiveness in capturing market momentum. The strategy's Sharpe ratio of 1.14 further highlights its strong risk-adjusted performance, demonstrating consistent capital appreciation over the period.

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