In recent news, Kestra Advisory Services LLC has significantly increased its position in GoDaddy Inc. during Q4, which highlights the interest of institutional investors in the company. In this article, we will take a closer look at the domain name industry, GoDaddy, and Kestra Advisory Services, as well as some industry analysts’ opinions on the company.
The Domain Name Industry: An Overview
The domain name industry encompasses companies that provide domain name registration and web hosting services to businesses and individuals worldwide. This industry has seen significant growth over the years, with more and more individuals and businesses going online to establish their presence. According to a report by Grand View Research, the global domain name market size is expected to reach $8.4 billion by 2025, growing at a CAGR of 13.7% from 2019 to 2025.
GoDaddy: Leading the Charge
GoDaddy is a well-known player in the domain name industry, offering website building tools, hosting, and security solutions to individuals and organizations worldwide. The company operates through two main segments: Applications and Commerce (A&C) and Core Platform (Core). The A&C segment includes sales of products containing proprietary software as well as commerce products and third-party email and productivity solutions. The company has a market capitalization of $11.72 billion, with a PE ratio of 34.64, a P/E/G ratio of 1.91, and a beta of 0.98.
Kestra Advisory Services LLC: Increasing Position in GoDaddy
Kestra Advisory Services LLC recently increased its position in GoDaddy Inc. by a staggering 38.1% during Q4, according to the Securities and Exchange Commission (SEC). This shift means that the firm now holds 11,418 shares in the technology company, a significant increase from its previous holdings. These additional shares are worth $854,000 as of Kestra Advisory Services LLC’s most recent filing with the SEC. This move highlights the interest of institutional investors in GoDaddy and the potential growth prospects of the domain name industry.
Industry Analysts’ Opinions on GoDaddy
Several equities research analysts have commented on GoDaddy’s ability to grow in the domain name industry. Robert W. Baird began coverage on shares of GoDaddy last April, issuing an “outperform” rating alongside a $95.00 price target for stock valuation moving forward. Evercore ISI also gave GoDaddy a favorable rating at “outperform,” but raised its price target even further from $86.00 to $103.00 earlier this year due to positive developments.
Raymond James raised its price objective on GoDaddy from $88 to $94 while assigning a coveted “strong-buy” rating back in February 2017. Benchmark voiced similar views when it revealed a buy rating while setting its target for GoDaddy at $100 around the same period. However, some analysts have been more cautious about the potential of this market giant; Barclays dropped its anticipated targets from initial figures hovering around $104 down to $100 due to rising competition in parts of the broader IT sector. Despite these differing opinions, industry insiders and market watchers alike continue to stand by the consensus rating of “Moderate Buy” on GoDaddy Inc.’s lower estimates.
Institutional Investors and GoDaddy Shares
Hedge funds and other institutional investors own 97.32% of GoDaddy’s stock, and the company has seen several institutional investors incorporate positions in the firm or reduce their stakes in recent months. One of the most notable moves came from Wellington Management Group, which purchased an additional 1,152,540 shares of GoDaddy during the second quarter of 2022, bringing its total stake to over 8.5 million shares. Other institutional investors that have increased their holdings in GoDaddy over the past year include Vanguard Group, BlackRock, and Fidelity Management & Research Co.
However, not all institutional investors have shown faith in the company’s future prospects. In September 2022, Goldman Sachs Asset Management reduced its holdings in GoDaddy by 36%, selling off over 3 million shares. Similarly, Invesco Ltd. and Janus Henderson Group plc also trimmed their stakes in GoDaddy during the same period.
Overall, the consensus rating of “Moderate Buy” and the favorable opinions of industry analysts suggest that GoDaddy remains a solid investment opportunity in the domain name industry. While there may be some challenges and competition on the horizon, the company’s track record of growth and innovation, coupled with its strong financials and market position, continue to inspire confidence among investors and analysts alike.