No less than eight analysts lifted their price targets for GDDY
Website domain provider Godaddy Inc (NYSE:GDDY) is surging ahead of the bell, up 11.3% to trade at $82.90 following its second-quarter earnings report. The firm reported losses of $4.06 for the quarter, much lower than the 17-cent profit that was expected by analysts. However, Godaddy also reported a revenue beat, and its third-quarter forecast topped expectations.
In response, no less than eight analysts lifted their price targets for GDDY, including J.P. Morgan Securities, which raised its target to $110, as well as Raymond James, which raised it to $92. Both analysts also upgraded the stock, to "overweight" and "strong buy," respectively.
Coming into today, most analysts were already riding that bullish bandwagon. Just one of the 10 in coverage called the security a "hold," compared to nine that carried a "buy" or better rating. Meanwhile, the consensus 12-month price target of $89.86 was a 20.7% premium to last night's close.
Options players are in the same boat, per Godaddy's 50-day call/put volume ratio of 4.81 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 91% of reading from the past year, suggesting a healthier-than-usual appetite for long calls of late.
Today's move has GDDY breaking recent pressure at its 60-day moving average to circle back to its 22-month high of $84.49 on June 23. While this level -- which sits right underneath its 2018 all-time-highs -- sent GDDY back below its pre-bull gap levels, the 320-day moving average managed to bolster the equity, now on course to notch its third-consecutive win.