We wouldn't blame GoDaddy Inc. (NYSE:GDDY) shareholders if they were a little worried about the fact that Amanpal Bhutani, the CEO & Director recently netted about US$1.3m selling shares at an average price of US$197. 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%.

GoDaddy Insider Transactions Over The Last Year

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$207. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 23% of Amanpal Bhutani's stake.

In the last year GoDaddy insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 0.4% of the company, currently worth about US$111m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. But since GoDaddy is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for GoDaddy (2 shouldn't be ignored!) that we believe deserve your full attention.

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.