BidaskClub Lowers CDK Global (NASDAQ:CDK) to Sell

BidaskClub downgraded shares of CDK Global (NASDAQ:CDK) from a hold rating to a sell rating in a report issued on Thursday, BidAskClub reports.

CDK has been the subject of several other research reports. ValuEngine upgraded CDK Global from a sell rating to a hold rating in a research report on Thursday, August 1st. Zacks Investment Research lowered CDK Global from a buy rating to a hold rating in a research report on Monday, May 6th. Finally, Barrington Research reiterated a buy rating on shares of CDK Global in a research report on Monday, April 29th. One research analyst has rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating to the stock. CDK Global presently has a consensus rating of Hold and a consensus price target of $67.75.

CDK opened at $44.96 on Thursday. The firm has a market cap of $5.32 billion, a P/E ratio of 14.32, a P/E/G ratio of 1.38 and a beta of 0.85. CDK Global has a 12 month low of $43.10 and a 12 month high of $64.77. The stock has a 50-day moving average of $50.21 and a 200 day moving average of $53.75.

CDK Global (NASDAQ:CDK) last released its quarterly earnings results on Tuesday, August 13th. The software maker reported $0.88 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.86 by $0.02. The company had revenue of $488.60 million during the quarter, compared to analyst estimates of $585.10 million. CDK Global had a negative return on equity of 90.04% and a net margin of 5.55%. The firm’s revenue was up 7.6% on a year-over-year basis. During the same quarter last year, the business posted $0.87 earnings per share. Analysts predict that CDK Global will post 3.19 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, September 27th. Investors of record on Tuesday, September 3rd will be given a $0.15 dividend. The ex-dividend date is Friday, August 30th. This represents a $0.60 annualized dividend and a yield of 1.33%. CDK Global’s dividend payout ratio is currently 19.11%.

In other CDK Global news, General Counsel Lee J. Brunz sold 1,000 shares of the business’s stock in a transaction that occurred on Monday, July 15th. The stock was sold at an average price of $50.74, for a total transaction of $50,740.00. Following the completion of the transaction, the general counsel now owns 37,927 shares in the company, valued at $1,924,415.98. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 2,000 shares of company stock valued at $96,925 in the last 90 days. Company insiders own 0.50% of the company’s stock.

Several large investors have recently made changes to their positions in CDK. Dimensional Fund Advisors LP raised its stake in CDK Global by 32.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 724,154 shares of the software maker’s stock valued at $34,671,000 after acquiring an additional 177,009 shares during the period. Geode Capital Management LLC grew its holdings in CDK Global by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 1,283,581 shares of the software maker’s stock valued at $61,420,000 after buying an additional 14,834 shares in the last quarter. Virtu Financial LLC acquired a new position in CDK Global in the 1st quarter valued at $418,000. BTIM Corp. grew its holdings in CDK Global by 695.2% in the 1st quarter. BTIM Corp. now owns 177,998 shares of the software maker’s stock valued at $10,470,000 after buying an additional 155,614 shares in the last quarter. Finally, Meeder Asset Management Inc. grew its holdings in CDK Global by 151.3% in the 1st quarter. Meeder Asset Management Inc. now owns 11,546 shares of the software maker’s stock valued at $679,000 after buying an additional 6,951 shares in the last quarter. Institutional investors and hedge funds own 82.05% 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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