Have Insiders Sold GoDaddy Shares Recently?

Some GoDaddy Inc. (NYSE:GDDY) shareholders may be a little concerned to see that the CEO & Director, Amanpal Bhutani, recently sold a substantial US$1.1m worth of stock at a price of US$157 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 2.9%.

See our latest analysis for GoDaddy

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. Earlier in the year, they fetched US$114 per share in a -US$7.6m sale. That means that an insider was selling shares at slightly below the current price (US$150). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 23% of Amanpal Bhutani's holding.

Insiders in GoDaddy didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. GoDaddy insiders own about US$78m worth of shares. That equates to 0.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About GoDaddy Insiders?

Insiders sold GoDaddy shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, GoDaddy makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for GoDaddy you should be aware of, and 2 of these make us uncomfortable.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.