CDK Global (NASDAQ:CDK) Earns Buy Rating from Barrington Research

Barrington Research reiterated their buy rating on shares of CDK Global (NASDAQ:CDK) in a report released on Monday, AnalystRatings.com reports. They currently have a $65.00 price objective on the software maker’s stock.

A number of other research analysts have also recently issued reports on the company. Zacks Investment Research cut CDK Global from a buy rating to a hold rating in a research note on Monday, May 6th. BidaskClub cut CDK Global from a hold rating to a sell rating in a research note on Thursday, August 15th. Finally, ValuEngine upgraded CDK Global from a sell rating to a hold rating in a research note on Thursday, August 1st. Two research analysts have rated the stock with a sell rating, three have given a hold rating and two have assigned a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $64.00.

Shares of NASDAQ:CDK opened at $44.65 on Monday. The stock has a fifty day simple moving average of $49.75 and a two-hundred day simple moving average of $53.57. The stock has a market capitalization of $5.45 billion, a price-to-earnings ratio of 14.22, a PEG ratio of 1.41 and a beta of 0.85. CDK Global has a 12-month low of $43.10 and a 12-month high of $64.77.

CDK Global (NASDAQ:CDK) last announced its quarterly earnings data on Tuesday, August 13th. The software maker reported $0.88 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.86 by $0.02. The business had revenue of $488.60 million during the quarter, compared to analysts’ expectations 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 quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.87 earnings per share. Sell-side analysts predict that CDK Global will post 3.19 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 27th. Shareholders of record on Tuesday, September 3rd will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 1.34%. The ex-dividend date of this dividend is Friday, August 30th. CDK Global’s payout ratio is 19.11%.

In other CDK Global news, General Counsel Lee J. Brunz sold 1,000 shares of CDK Global stock in a transaction on Monday, July 15th. The stock was sold at an average price of $50.74, for a total value of $50,740.00. Following the completion of the sale, the general counsel now owns 37,927 shares of the company’s stock, valued at approximately $1,924,415.98. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last three months, insiders sold 2,000 shares of company stock valued at $96,925. Corporate insiders own 0.50% of the company’s stock.

Several institutional investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP increased its position in shares of CDK Global by 32.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 724,154 shares of the software maker’s stock valued at $34,671,000 after purchasing an additional 177,009 shares during the last quarter. Geode Capital Management LLC increased its position in shares of CDK Global by 1.2% during 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 purchasing an additional 14,834 shares during the last quarter. Virtu Financial LLC purchased a new stake in shares of CDK Global during the 1st quarter valued at $418,000. Clarkston Capital Partners LLC increased its position in shares of CDK Global by 2.3% during the 1st quarter. Clarkston Capital Partners LLC now owns 1,534,990 shares of the software maker’s stock valued at $90,288,000 after purchasing an additional 35,050 shares during the last quarter. Finally, BB&T Corp increased its position in shares of CDK Global by 22.2% during the 1st quarter. BB&T Corp now owns 79,052 shares of the software maker’s stock valued at $4,651,000 after purchasing an additional 14,348 shares during the last quarter. 82.49% of the stock is owned by institutional investors and hedge funds.

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.

Further Reading: CD Ladder

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