CDK Global (NASDAQ:CDK) Updates FY 2022 Earnings Guidance

CDK Global (NASDAQ:CDK) updated its FY 2022 earnings guidance on Tuesday. The company provided earnings per share guidance of $2.700-$2.900 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $3.020. The company issued revenue guidance of $1.78 billion-$1.82 billion, compared to the consensus revenue estimate of $1.78 billion.

Several research firms have recently issued reports on CDK. Zacks Investment Research cut CDK Global from a hold rating to a strong sell rating in a research note on Monday, August 23rd. TheStreet lowered shares of CDK Global from a b- rating to a c+ rating in a report on Tuesday, July 13th. Finally, Morgan Stanley lowered their price objective on shares of CDK Global from $62.00 to $56.00 and set an overweight rating for the company in a report on Wednesday, August 18th. One research analyst has rated the stock with a sell rating and three have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of Buy and a consensus target price of $62.20.

Shares of NASDAQ:CDK opened at $42.29 on Wednesday. The company has a market capitalization of $5.11 billion, a P/E ratio of 5.02 and a beta of 1.37. CDK Global has a 1-year low of $39.78 and a 1-year high of $55.51. The firm’s 50 day simple moving average is $45.26 and its two-hundred day simple moving average is $50.09. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.53 and a quick ratio of 1.53.

CDK Global (NASDAQ:CDK) last announced its quarterly earnings results on Monday, August 16th. The software maker reported $0.66 EPS for the quarter, missing the Zacks’ consensus estimate of $0.67 by ($0.01). CDK Global had a net margin of 59.00% and a return on equity of 5,754.17%. The business had revenue of $420.10 million during the quarter, compared to the consensus estimate of $428.10 million. During the same period in the previous year, the business posted $0.67 EPS. The firm’s revenue was down 6.6% on a year-over-year basis. On average, sell-side analysts anticipate that CDK Global will post 2.43 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 30th. Shareholders of record on Wednesday, September 1st will be paid a $0.15 dividend. The ex-dividend date is Tuesday, August 31st. This represents a $0.60 annualized dividend and a yield of 1.42%. CDK Global’s dividend payout ratio (DPR) is presently 27.03%.

In other news, General Counsel Lee J. Brunz sold 1,447 shares of the firm’s stock in a transaction dated Monday, September 13th. The stock was sold at an average price of $42.96, for a total value of $62,163.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.54% of the stock is owned by insiders.

A hedge fund recently raised its stake in CDK Global stock. Morgan Stanley increased its stake in shares of CDK Global, Inc. (NASDAQ:CDK) by 42.0% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,710,256 shares of the software maker’s stock after purchasing an additional 505,952 shares during the quarter. Morgan Stanley owned 1.42% of CDK Global worth $84,982,000 at the end of the most recent quarter. 86.20% of the stock is owned by institutional investors and hedge funds.

About CDK Global

CDK Global, Inc engages in the provision of integrated information technology and digital marketing solutions to the automotive, heavy truck, recreation, and heavy equipment industries. The firm focuses on providing a suite of subscription-based software and technology solutions for automotive retailers in North America.

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Earnings History and Estimates for CDK Global (NASDAQ:CDK)

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