CDK Global (CDK) Downgraded by BidaskClub to Sell

BidaskClub cut shares of CDK Global (NASDAQ:CDK) from a hold rating to a sell rating in a research note issued to investors on Tuesday, BidAskClub reports.

CDK has been the subject of several other research reports. Zacks Investment Research raised shares of CDK Global from a hold rating to a buy rating and set a $60.00 price objective for the company in a research report on Friday, February 8th. Oppenheimer set a $67.00 price objective on shares of CDK Global and gave the stock a buy rating in a research report on Tuesday, February 5th. ValuEngine raised shares of CDK Global from a sell rating to a hold rating in a research report on Monday, March 25th. Finally, Barrington Research reaffirmed a buy rating on shares of CDK Global in a research report on Monday, April 29th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $67.75.

Shares of CDK Global stock opened at $51.58 on Tuesday. The stock has a market capitalization of $6.27 billion, a PE ratio of 16.97, a price-to-earnings-growth ratio of 1.41 and a beta of 0.71. CDK Global has a 52-week low of $44.01 and a 52-week high of $67.97.

CDK Global (NASDAQ:CDK) last announced its earnings results on Tuesday, April 30th. The software maker reported $0.98 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.90 by $0.08. The company had revenue of $602.10 million during the quarter, compared to analysts’ expectations of $596.47 million. CDK Global had a net margin of 16.34% and a negative return on equity of 113.53%. During the same quarter in the previous year, the business posted $0.85 earnings per share. On average, sell-side analysts forecast that CDK Global will post 3.63 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 27th. Investors of record on Monday, June 3rd will be given a dividend of $0.15 per share. The ex-dividend date is Friday, May 31st. This represents a $0.60 annualized dividend and a yield of 1.16%. CDK Global’s dividend payout ratio is 19.74%.

Hedge funds and other institutional investors have recently modified their holdings of the business. LSV Asset Management acquired a new position in CDK Global during the fourth quarter worth about $2,922,000. Raymond James Financial Services Advisors Inc. raised its stake in CDK Global by 5.9% during the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 16,777 shares of the software maker’s stock worth $803,000 after acquiring an additional 940 shares in the last quarter. Arizona State Retirement System raised its stake in CDK Global by 7.7% during the fourth quarter. Arizona State Retirement System now owns 126,553 shares of the software maker’s stock worth $6,059,000 after acquiring an additional 9,075 shares in the last quarter. Texas Permanent School Fund raised its stake in CDK Global by 3.5% during the fourth quarter. Texas Permanent School Fund now owns 84,268 shares of the software maker’s stock worth $4,035,000 after acquiring an additional 2,823 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in CDK Global by 32.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 724,154 shares of the software maker’s stock worth $34,671,000 after acquiring an additional 177,009 shares in the last quarter. 84.46% of the stock is owned by hedge funds and other institutional investors.

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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