Chief Financial Officer Mark McCaffrey Sold A Bunch Of Shares In GoDaddy

Some GoDaddy Inc. (NYSE:GDDY) shareholders may be a little concerned to see that the Chief Financial Officer, Mark McCaffrey, recently sold a substantial US$6.8m worth of stock at a price of US$181 per share. That diminished their holding by a very significant 59%, which arguably implies a strong desire to reallocate capital.

The Last 12 Months Of Insider Transactions At GoDaddy

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Amanpal Bhutani, sold US$10m worth of shares at a price of US$174 per share. That means that an insider was selling shares at slightly below the current price (US$183). 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. We note that the biggest single sale was only 16% of Amanpal Bhutani's holding.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for GoDaddy

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).

Does GoDaddy Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that GoDaddy insiders own 0.5% of the company, worth about US$120m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At GoDaddy Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for GoDaddy 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.