Zacks Investment Research upgraded shares of CDK Global (NASDAQ:CDK) from a hold rating to a buy rating in a research note issued to investors on Friday morning. They currently have $60.00 price objective on the software maker’s stock.
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 analysts have also recently issued reports on CDK. BidaskClub upgraded CDK Global from a strong sell rating to a sell rating in a report on Wednesday, October 24th. Barrington Research restated a buy rating and issued a $80.00 price target on shares of CDK Global in a report on Monday, November 5th. Oppenheimer set a $67.00 price target on CDK Global and gave the stock a buy rating in a report on Wednesday, November 7th. Wells Fargo & Co cut CDK Global from an outperform rating to a market perform rating in a report on Thursday, November 8th. Finally, Morgan Stanley set a $62.00 price target on CDK Global and gave the stock a hold rating in a report on Thursday, November 8th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and three have assigned a buy rating to the stock. The stock currently has a consensus rating of Hold and an average target price of $67.25.
Shares of NASDAQ:CDK traded up $1.56 during trading on Friday, reaching $55.37. 1,890,170 shares of the stock were exchanged, compared to its average volume of 1,379,001. CDK Global has a 12-month low of $44.01 and a 12-month high of $71.71. The stock has a market capitalization of $6.91 billion, a P/E ratio of 18.21, a PEG ratio of 1.49 and a beta of 0.65.
CDK Global (NASDAQ:CDK) last issued its earnings results on Tuesday, February 5th. The software maker reported $0.98 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.86 by $0.12. CDK Global had a negative return on equity of 135.00% and a net margin of 16.36%. The business had revenue of $590.40 million during the quarter, compared to analysts’ expectations of $578.91 million. During the same quarter in the previous year, the business earned $0.87 EPS. The company’s revenue for the quarter was up 5.1% on a year-over-year basis. Research analysts expect that CDK Global will post 3.61 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Friday, March 1st will be issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 1.08%. The ex-dividend date of this dividend is Thursday, February 28th. CDK Global’s dividend payout ratio is presently 19.74%.
In related news, insider Neil Packham purchased 588 shares of the firm’s stock in a transaction on Friday, December 14th. The stock was purchased at an average price of $47.76 per share, for a total transaction of $28,082.88. Following the acquisition, the insider now directly owns 588 shares in the company, valued at $28,082.88. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.50% of the stock is owned by corporate insiders.
Institutional investors have recently added to or reduced their stakes in the company. HL Financial Services LLC boosted its stake in shares of CDK Global by 14.5% during the 3rd quarter. HL Financial Services LLC now owns 14,352 shares of the software maker’s stock valued at $898,000 after buying an additional 1,822 shares during the last quarter. Clarkston Capital Partners LLC acquired a new stake in shares of CDK Global during the 3rd quarter valued at approximately $43,048,000. MetLife Investment Advisors LLC raised its position in shares of CDK Global by 1.9% during the 3rd quarter. MetLife Investment Advisors LLC now owns 79,248 shares of the software maker’s stock valued at $4,958,000 after acquiring an additional 1,496 shares in the last quarter. Tealwood Asset Management Inc. acquired a new stake in shares of CDK Global during the 3rd quarter valued at approximately $3,008,000. Finally, Sloane Robinson LLP acquired a new stake in shares of CDK Global during the 3rd quarter valued at approximately $488,000. Institutional investors own 80.40% 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.
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