Starboard Value buys 6.5% stake in GoDaddy for $ 800 million – report
Starboard Value acquired a 6.5% stake in web services company GoDaddy, Inc. (GDDY). Citing regulatory documents with the United States Securities and Exchange Commission, Reuters reports that the stake purchased by the activist investor was valued at around $ 800 million. GDDY stock rose 0.18% to close at $ 82.50 on December 28.
GoDaddy is a web services company specializing in providing domain name registration and web hosting services. It offers website building, hosting and security tools. GoDaddy Revenue Report for the fourth quarter of 2021 is scheduled for February 16, 2022.
Value investment on starboard
According to regulatory documents, the activist investor is open to increasing or decreasing their stake in GoDaddy, depending on general market conditions. Starboard Value insists it made the investment to take advantage of the attractive investment opportunity as GoDaddy’s shares were undervalued.
The activist investor should push GoDaddy to improve its performance after the investment. The web service company has seen a significant increase in online traffic in recent months. The shift to digital operations in the wake of the COVID-19 pandemic has been the main catalyst for the growth in online traffic.
Earlier this week, Truist Financial analyst Naved Khan reiterated a buy rating on GoDaddy with a price target of $ 112, implying upside potential of 35.76% from current levels. . According to the analyst, the investment adds another positive layer to GoDaddy’s story.
The consensus among analysts is a moderate buy based on 5 buys and 3 takes. GoDaddy’s average price target of $ 95.63 implies upside potential of 15.92% from current levels.
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