Some GoDaddy Inc. (NYSE:GDDY) shareholders may be a little concerned to see that the CEO & Director, Amanpal Bhutani, recently sold a substantial US$942k worth of stock at a price of US$138 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 2.8%.
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$7.6m worth of shares at a price of US$114 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$139. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 23% of Amanpal Bhutani's stake.
Insiders in GoDaddy didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. GoDaddy insiders own about US$73m worth of shares. That equates to 0.4% 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 Does This Data Suggest About GoDaddy Insiders?
Insiders sold GoDaddy shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since GoDaddy is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, GoDaddy has 4 warning signs (and 2 which shouldn't be ignored) we think you should know about.
But note: GoDaddy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.