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

CDK Global (NASDAQ:CDK) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Friday.

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. “

A number of other research firms have also weighed in on CDK. BidaskClub lowered shares of CDK Global from a “sell” rating to a “strong sell” rating in a research note on Tuesday, October 9th. Morgan Stanley set a $62.00 price objective on shares of CDK Global and gave the company a “hold” rating in a research note on Thursday, November 8th. Barrington Research set a $80.00 price objective on shares of CDK Global and gave the company a “buy” rating in a research note on Tuesday, November 13th. Wells Fargo & Co lowered shares of CDK Global from an “outperform” rating to a “market perform” rating in a research note on Thursday, November 8th. Finally, ValuEngine lowered shares of CDK Global from a “hold” rating to a “sell” rating in a research note on Wednesday, October 3rd. One analyst has rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the company’s stock. CDK Global currently has an average rating of “Hold” and a consensus target price of $72.20.

Shares of CDK Global stock traded up $0.44 during trading on Friday, hitting $50.04. The company’s stock had a trading volume of 853,900 shares, compared to its average volume of 1,002,688. The firm has a market cap of $6.35 billion, a price-to-earnings ratio of 16.46, a PEG ratio of 1.38 and a beta of 0.70. CDK Global has a 52 week low of $44.01 and a 52 week high of $76.04.

CDK Global (NASDAQ:CDK) last issued its quarterly earnings results on Wednesday, November 7th. The software maker reported $0.89 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.83 by $0.06. The company had revenue of $554.50 million during the quarter, compared to analyst estimates of $560.52 million. CDK Global had a net margin of 17.23% and a negative return on equity of 173.86%. CDK Global’s quarterly revenue was down 2.0% compared to the same quarter last year. During the same period last year, the business earned $0.68 EPS. Equities analysts anticipate that CDK Global will post 3.58 EPS for the current fiscal year.

In related news, CFO Joseph A. Tautges purchased 7,900 shares of CDK Global stock in a transaction dated Friday, November 9th. The stock was purchased at an average cost of $50.68 per share, for a total transaction of $400,372.00. Following the completion of the purchase, the chief financial officer now directly owns 25,594 shares of the company’s stock, valued at approximately $1,297,103.92. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Neil Packham purchased 588 shares of CDK Global stock in a transaction dated Friday, December 14th. The stock was bought at an average price of $47.76 per share, with a total value of $28,082.88. Following the completion of the purchase, the insider now directly owns 588 shares of the company’s stock, valued at $28,082.88. The disclosure for this purchase can be found here. Over the last 90 days, insiders have acquired 10,988 shares of company stock valued at $555,855. 0.50% of the stock is owned by company insiders.

Several hedge funds have recently made changes to their positions in CDK. Russell Investments Group Ltd. grew its stake in shares of CDK Global by 187.7% in the second quarter. Russell Investments Group Ltd. now owns 27,469 shares of the software maker’s stock worth $1,788,000 after acquiring an additional 17,921 shares during the period. FMR LLC grew its stake in shares of CDK Global by 35.1% in the second quarter. FMR LLC now owns 2,846,088 shares of the software maker’s stock worth $185,138,000 after acquiring an additional 739,661 shares during the period. Caisse DE Depot ET Placement DU Quebec grew its stake in shares of CDK Global by 424.4% in the second quarter. Caisse DE Depot ET Placement DU Quebec now owns 18,300 shares of the software maker’s stock worth $1,190,000 after acquiring an additional 14,810 shares during the period. Baird Financial Group Inc. grew its stake in shares of CDK Global by 50.1% in the second quarter. Baird Financial Group Inc. now owns 16,698 shares of the software maker’s stock worth $1,086,000 after acquiring an additional 5,573 shares during the period. Finally, BB&T Securities LLC grew its stake in shares of CDK Global by 41.4% in the second quarter. BB&T Securities LLC now owns 7,941 shares of the software maker’s stock worth $516,000 after acquiring an additional 2,326 shares during the period. Hedge funds and other institutional investors own 79.80% of the company’s stock.

About CDK Global

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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