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GoDaddy Stock Jumps After Investor Takes Stake

The stock is breaking past pressure on the charts

Deputy Editor
Dec 27, 2021 at 10:20 AM
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The shares of domain server GoDaddy Inc (NYSE:GDDY) are up 6.7% to trade at $81.08 at last check, after the Wall Street Journal reported that activist investor Starboard Value LP has purchased a 6.5% stake in the company, which is roughly $800 million's worth. The firm plans to push the company to improve its performance.

Today's pop has GDDY at its highest level since its early August bear gap. The stock broke past familiar pressure at the $76 level, which was also home to its 160-day moving average, a trendline that acted as support prior to its aforementioned summer slide. 

The majority of the brokerage bunch is bullish on GoDaddy stock. Of the 12 analysts in coverage, eight carry a "strong buy" rating, with four a tepid "hold." Plus, the 12-month consensus price target of $96.60 is a 19.3% premium to current levels. Meanwhile, short interest makes up 3.3% of the stock's available float, and would take four days to cover, at GDDY's average pace of trading. 

That said, speculating on the security's next move with options could be a prudent play. The stock's Schaeffer's Volatility Index (SVI) of 29% stands higher than just 13% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 


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