Don't Ignore The Insider Selling In GoDaddy

Some GoDaddy Inc. (NYSE:GDDY) shareholders may be a little concerned to see that the CEO & Director, Amanpal Bhutani, recently sold a substantial US$988k worth of stock at a price of US$142 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.2%.

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The Last 12 Months Of Insider Transactions At GoDaddy

Notably, that recent sale by CEO & Director Amanpal Bhutani was not the only time they sold GoDaddy shares this year. They previously made an even bigger sale of -US$10m worth of shares at a price of US$174 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$145. So it may not shed much light on insider confidence at current levels.

GoDaddy insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for GoDaddy

I will like GoDaddy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does GoDaddy Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. GoDaddy insiders own about US$98m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The GoDaddy Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with GoDaddy and understanding them should be part of your investment process.

Of course GoDaddy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.