Barrington Research Comments on CDK Global Inc’s Q2 2018 Earnings (CDK)

CDK Global Inc (NASDAQ:CDK) – Analysts at Barrington Research reduced their Q2 2018 earnings per share (EPS) estimates for CDK Global in a report released on Tuesday. Barrington Research analyst G. Prestopino now forecasts that the software maker will earn $0.71 per share for the quarter, down from their prior forecast of $0.73. Barrington Research has a “Buy” rating and a $75.00 price target on the stock.

CDK Global (NASDAQ:CDK) last issued its quarterly earnings results on Tuesday, October 31st. The software maker reported $0.68 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.68. CDK Global had a net margin of 13.42% and a return on equity of 515.77%. The company had revenue of $565.70 million for the quarter, compared to the consensus estimate of $569.28 million. During the same quarter in the prior year, the company earned $0.60 EPS. CDK Global’s quarterly revenue was up 2.7% on a year-over-year basis.

Several other equities analysts also recently weighed in on the stock. Zacks Investment Research downgraded shares of CDK Global from a “buy” rating to a “hold” rating in a report on Friday, November 3rd. BidaskClub cut shares of CDK Global from a “buy” rating to a “hold” rating in a research note on Wednesday, September 13th. Finally, TheStreet raised shares of CDK Global from a “c+” rating to a “b-” rating in a research note on Thursday, October 19th. Three analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus price target of $72.60.

Shares of CDK Global (CDK) traded down $0.45 during trading hours on Thursday, reaching $71.59. 981,500 shares of the company traded hands, compared to its average volume of 1,446,686. CDK Global has a one year low of $58.67 and a one year high of $73.48. The company has a current ratio of 2.37, a quick ratio of 2.37 and a debt-to-equity ratio of 297.80. The firm has a market cap of $9,860.00, a P/E ratio of 34.75, a PEG ratio of 1.60 and a beta of 0.78.

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Stockholders of record on Friday, December 1st were paid a dividend of $0.15 per share. This is a boost from CDK Global’s previous quarterly dividend of $0.14. The ex-dividend date was Thursday, November 30th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.84%. CDK Global’s dividend payout ratio (DPR) is presently 29.13%.

In other news, VP Jennifer A. Williams sold 1,984 shares of the firm’s stock in a transaction that occurred on Thursday, November 2nd. The shares were sold at an average price of $62.58, for a total transaction of $124,158.72. Following the sale, the vice president now owns 5,560 shares of the company’s stock, valued at approximately $347,944.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.39% of the stock is owned by company insiders.

A number of institutional investors have recently added to or reduced their stakes in CDK. Macquarie Group Ltd. acquired a new stake in CDK Global in the 3rd quarter valued at $145,000. D.A. Davidson & CO. grew its stake in CDK Global by 5.6% in the 2nd quarter. D.A. Davidson & CO. now owns 3,130 shares of the software maker’s stock valued at $194,000 after acquiring an additional 167 shares during the period. Associated Banc Corp grew its stake in CDK Global by 4.7% in the 2nd quarter. Associated Banc Corp now owns 3,965 shares of the software maker’s stock valued at $246,000 after acquiring an additional 179 shares during the period. IFM Investors Pty Ltd acquired a new stake in CDK Global in the 3rd quarter valued at $275,000. Finally, Boothbay Fund Management LLC acquired a new stake in CDK Global in the 3rd quarter valued at $321,000. 87.50% of the stock is currently owned by hedge funds and other institutional investors.

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CDK Global Company Profile

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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