Barrington Research Downgrades CDK Global (NASDAQ:CDK) to Market Perform

CDK Global (NASDAQ:CDK) was downgraded by equities researchers at Barrington Research from an “outperform” rating to a “market perform” rating in a research note issued on Wednesday, January 17th, Marketbeat Ratings reports. They presently have a $75.00 price target on the software maker’s stock. Barrington Research’s target price points to a potential upside of 5.92% from the company’s current price. The analysts noted that the move was a valuation call.

A number of other brokerages also recently issued reports on CDK. TheStreet upgraded CDK Global from a “c+” rating to a “b-” rating in a research note on Thursday, October 19th. BidaskClub upgraded CDK Global from a “hold” rating to a “buy” rating in a research note on Wednesday, October 11th. Finally, Zacks Investment Research downgraded CDK Global from a “buy” rating to a “hold” rating in a research note on Friday, November 3rd. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $76.80.

Shares of CDK Global (NASDAQ CDK) traded up $4.15 during trading on Wednesday, reaching $70.81. The company had a trading volume of 2,256,039 shares, compared to its average volume of 1,330,000. CDK Global has a 1-year low of $59.33 and a 1-year high of $76.04. The company has a market capitalization of $9,740.00, a P/E ratio of 31.33, a P/E/G ratio of 1.36 and a beta of 0.70. The company has a debt-to-equity ratio of -11.19, a current ratio of 1.97 and a quick ratio of 1.97.

CDK Global (NASDAQ:CDK) last announced its quarterly earnings results on Tuesday, January 30th. The software maker reported $0.87 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.70 by $0.17. CDK Global had a negative return on equity of 5,261.95% and a net margin of 14.29%. The business had revenue of $561.70 million during the quarter, compared to the consensus estimate of $564.94 million. During the same quarter in the prior year, the company posted $0.55 earnings per share. CDK Global’s revenue was up 2.5% compared to the same quarter last year. sell-side analysts anticipate that CDK Global will post 3.26 EPS for the current fiscal year.

Several hedge funds have recently bought and sold shares of the company. BlackRock Inc. grew its stake in shares of CDK Global by 4.0% during the 2nd quarter. BlackRock Inc. now owns 13,718,146 shares of the software maker’s stock worth $851,347,000 after acquiring an additional 521,564 shares during the period. Vanguard Group Inc. lifted its holdings in CDK Global by 3.6% during the 2nd quarter. Vanguard Group Inc. now owns 12,646,904 shares of the software maker’s stock worth $784,867,000 after purchasing an additional 434,687 shares in the last quarter. Southpoint Capital Advisors LP lifted its holdings in CDK Global by 13.8% during the 2nd quarter. Southpoint Capital Advisors LP now owns 2,275,700 shares of the software maker’s stock worth $141,230,000 after purchasing an additional 275,700 shares in the last quarter. FMR LLC lifted its holdings in CDK Global by 0.5% during the 2nd quarter. FMR LLC now owns 2,249,300 shares of the software maker’s stock worth $139,592,000 after purchasing an additional 10,322 shares in the last quarter. Finally, Frontier Capital Management Co. LLC lifted its holdings in CDK Global by 11.9% during the 4th quarter. Frontier Capital Management Co. LLC now owns 1,579,837 shares of the software maker’s stock worth $112,611,000 after purchasing an additional 167,520 shares in the last quarter. Institutional investors own 89.62% of the company’s stock.

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About CDK Global

CDK Global, Inc provides integrated information technology and digital marketing solutions. The Company’s segments include Retail Solutions North America, Advertising North America and CDK International. Through its Retail Solutions North America segment, the Company provides technology-based solutions, including automotive Website platforms, that help automotive retailers, original equipment manufacturers (OEMs) and other industry participants manage the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles.

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