Should You Buy Godaddy Inc (GDDY)?

Judging by the fact that Godaddy Inc (NYSE:GDDY) has experienced no change in interest from the aggregate hedge fund industry, we shall look at a sect of hedgies that decided to sell off their entire stakes by the end of the third quarter. Interestingly, Drew Cupps’s Cupps Capital Management dumped the largest stake of the “upper crust” of funds tracked by Insider Monkey, totaling close to $3.2 million in stock. David E. Shaw’s fund, D E Shaw, also sold off its stock, about $0.9 million worth of GDDY shares. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Godaddy Inc (NYSE:GDDY) but similarly valued. These stocks are Sonoco Products Company (NYSE:SON), Vail Resorts, Inc. (NYSE:MTN), AptarGroup, Inc. (NYSE:ATR), and Watsco Inc (NYSE:WSO). This group of stocks’ market valuations resemble GDDY’s market valuation.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $207 million. That figure was a whooping $1.28 billion in GDDY’s case. Vail Resorts, Inc. (NYSE:MTN) is the most popular stock in this table. On the other hand AptarGroup, Inc. (NYSE:ATR) is the least popular one with only 12 bullish hedge fund positions. Godaddy Inc (NYSE:GDDY) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MTN might be a better candidate to consider a long position.

Disclosure: none.