CDK Global (NASDAQ:CDK) Upgraded to Hold by BidaskClub

BidaskClub upgraded shares of CDK Global (NASDAQ:CDK) from a sell rating to a hold rating in a research note issued to investors on Wednesday, October 31st.

Several other brokerages have also issued reports on CDK. Barrington Research reaffirmed a buy rating and set a $80.00 target price on shares of CDK Global in a research report on Monday, August 13th. Morgan Stanley decreased their target price on CDK Global from $75.00 to $68.00 and set an equal weight rating for the company in a research report on Wednesday, August 15th. ValuEngine raised CDK Global from a sell rating to a hold rating in a research report on Monday, August 13th. Finally, Zacks Investment Research raised CDK Global from a sell rating to a hold rating in a research report on Tuesday, October 16th. 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. CDK Global presently has an average rating of Hold and a consensus price target of $72.20.

Shares of NASDAQ:CDK traded up $0.19 during trading on Wednesday, reaching $49.68. 774,112 shares of the stock were exchanged, compared to its average volume of 1,388,343. The firm has a market capitalization of $6.37 billion, a price-to-earnings ratio of 16.34, a PEG ratio of 1.38 and a beta of 0.76. CDK Global has a 1-year low of $49.05 and a 1-year high of $76.04.

CDK Global (NASDAQ:CDK) last released its quarterly earnings results on Wednesday, November 7th. The software maker reported $0.89 EPS for the quarter, beating analysts’ consensus estimates of $0.83 by $0.06. The business had revenue of $554.50 million during the quarter, compared to analyst estimates of $560.52 million. CDK Global had a negative return on equity of 173.86% and a net margin of 17.23%. CDK Global’s quarterly revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.68 EPS. As a group, research analysts anticipate that CDK Global will post 3.59 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 28th. Stockholders of record on Monday, December 3rd will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, November 30th. This represents a $0.60 annualized dividend and a dividend yield of 1.21%. CDK Global’s payout ratio is 19.74%.

In other CDK Global news, General Counsel Lee J. Brunz purchased 2,500 shares of the company’s stock in a transaction dated Friday, November 9th. The stock was purchased at an average price of $50.96 per share, for a total transaction of $127,400.00. Following the transaction, the general counsel now owns 39,427 shares in the company, valued at approximately $2,009,199.92. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Joseph A. Tautges purchased 7,900 shares of the company’s stock in a transaction dated Friday, November 9th. The shares were acquired at an average price of $50.68 per share, with a total value of $400,372.00. Following the transaction, the chief financial officer now owns 25,594 shares in the company, valued at approximately $1,297,103.92. The disclosure for this purchase can be found here. 0.50% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the company. WealthTrust Fairport LLC bought a new stake in shares of CDK Global during the 3rd quarter valued at about $104,000. Qube Research & Technologies Ltd bought a new stake in shares of CDK Global during the 2nd quarter valued at about $109,000. Fort L.P. bought a new stake in shares of CDK Global during the 2nd quarter valued at about $121,000. Legacy Financial Advisors Inc. boosted its position in shares of CDK Global by 91.0% during the 2nd quarter. Legacy Financial Advisors Inc. now owns 1,899 shares of the software maker’s stock valued at $128,000 after acquiring an additional 905 shares during the last quarter. Finally, Itau Unibanco Holding S.A. bought a new stake in shares of CDK Global during the 2nd quarter valued at about $170,000. Hedge funds and other institutional investors own 84.07% 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.

Further Reading: Why is the ex-dividend date different from the record date?

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