CDK Global (CDK) Lifted to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of CDK Global (NASDAQ:CDK) from a sell rating to a hold rating in a report published on Tuesday.

According to Zacks, “CDK Global, Inc. provides integrated information technology and digital marketing solutions to the automotive retail industry. The Company operates in three segments: Automotive Retail Solutions North America, Automotive Retail Solutions International, and Digital Marketing Solutions. It integrates workflow processes from pre-sale targeted advertising and marketing campaigns to the sale, financing, insurance, parts supply, repair and maintenance of vehicles. CDK Global, Inc. is based in Hoffman Estates, Illinois. “

Several other research firms have also recently commented on CDK. Morgan Stanley dropped their target price on shares of CDK Global from $75.00 to $68.00 and set an equal weight rating on the stock in a research report on Wednesday, August 15th. ValuEngine raised shares of CDK Global from a sell rating to a hold rating in a research report on Thursday, September 13th. Barrington Research reissued a buy rating and set a $80.00 target price on shares of CDK Global in a research report on Monday, August 13th. Finally, BidaskClub cut shares of CDK Global from a sell rating to a strong sell rating in a research report on Thursday, August 2nd. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the company’s stock. The stock has an average rating of Hold and an average target price of $75.00.

Shares of NASDAQ CDK opened at $57.28 on Tuesday. CDK Global has a fifty-two week low of $55.75 and a fifty-two week high of $76.04. The stock has a market capitalization of $7.50 billion, a P/E ratio of 18.85, a price-to-earnings-growth ratio of 1.57 and a beta of 0.68. The company has a current ratio of 2.49, a quick ratio of 2.49 and a debt-to-equity ratio of -7.42.

CDK Global (NASDAQ:CDK) last announced its quarterly earnings results on Tuesday, August 14th. The software maker reported $0.87 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.80 by $0.07. CDK Global had a net margin of 16.75% and a negative return on equity of 235.59%. The business had revenue of $569.20 million for the quarter, compared to analysts’ expectations of $578.99 million. During the same quarter last year, the firm earned $0.55 EPS. The firm’s revenue for the quarter was up .7% compared to the same quarter last year. As a group, sell-side analysts expect that CDK Global will post 3.72 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Friday, September 28th. Stockholders of record on Tuesday, September 4th were paid a dividend of $0.15 per share. The ex-dividend date of this dividend was Friday, August 31st. This represents a $0.60 annualized dividend and a dividend yield of 1.05%. CDK Global’s payout ratio is currently 19.74%.

In other news, VP Jennifer A. Williams sold 4,114 shares of the firm’s stock in a transaction that occurred on Monday, August 27th. The shares were sold at an average price of $61.65, for a total transaction of $253,628.10. Following the completion of the sale, the vice president now owns 5,012 shares in the company, valued at approximately $308,989.80. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 0.50% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Senator Investment Group LP grew its stake in CDK Global by 43.1% in the 2nd quarter. Senator Investment Group LP now owns 3,005,000 shares of the software maker’s stock valued at $195,475,000 after buying an additional 905,000 shares in the last quarter. FMR LLC grew its position in shares of CDK Global by 35.1% during the 2nd quarter. FMR LLC now owns 2,846,088 shares of the software maker’s stock valued at $185,138,000 after purchasing an additional 739,661 shares in the last quarter. Boston Partners purchased a new position in shares of CDK Global during the 2nd quarter valued at $156,134,000. Bank of New York Mellon Corp grew its position in shares of CDK Global by 19.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 2,344,089 shares of the software maker’s stock valued at $152,484,000 after purchasing an additional 386,080 shares in the last quarter. Finally, Findlay Park Partners LLP grew its position in shares of CDK Global by 25.0% during the 2nd quarter. Findlay Park Partners LLP now owns 1,750,000 shares of the software maker’s stock valued at $113,838,000 after purchasing an additional 350,000 shares in the last quarter. Institutional investors own 82.15% of the company’s stock.

CDK Global Company Profile

CDK Global, Inc provides software and technology solutions for automotive retailers in the United States and internationally. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles.

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