November 10, 2019 at 6:11 pm

CDK Global (NASDAQ:CDK) Downgraded by Zacks Investment Research

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Zacks Investment Research lowered shares of CDK Global (NASDAQ:CDK) from a hold rating to a sell rating in a research note published on Wednesday, Zacks.com reports.

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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. “

CDK has been the topic of a number of other reports. Barrington Research reissued a buy rating and set a $65.00 target price on shares of CDK Global in a report on Monday, August 19th. ValuEngine raised shares of CDK Global from a sell rating to a hold rating in a report on Wednesday, October 2nd. Finally, BidaskClub raised shares of CDK Global from a hold rating to a buy rating in a report on Thursday, October 24th. Two investment analysts have rated the stock with a sell rating, two have assigned a buy rating and one has given a strong buy rating to the stock. CDK Global presently has a consensus rating of Hold and an average target price of $64.67.

CDK traded up $0.79 during trading on Wednesday, hitting $51.78. 401,900 shares of the company’s stock were exchanged, compared to its average volume of 922,132. The firm has a market cap of $6.41 billion, a P/E ratio of 16.49, a price-to-earnings-growth ratio of 1.57 and a beta of 0.92. CDK Global has a 1 year low of $41.50 and a 1 year high of $63.90. The stock has a 50 day moving average price of $48.24 and a 200 day moving average price of $49.37.

CDK Global (NASDAQ:CDK) last issued its earnings results on Tuesday, November 5th. The software maker reported $0.79 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.69 by $0.10. The company had revenue of $494.60 million for the quarter, compared to analysts’ expectations of $485.00 million. CDK Global had a net margin of 5.32% and a negative return on equity of 75.74%. The firm’s revenue was up 10.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.89 earnings per share. Sell-side analysts forecast that CDK Global will post 3.2 earnings per share for the current year.

Several institutional investors have recently added to or reduced their stakes in the company. River Road Asset Management LLC grew its position in shares of CDK Global by 3.3% during the third quarter. River Road Asset Management LLC now owns 1,135,473 shares of the software maker’s stock worth $54,605,000 after acquiring an additional 36,704 shares during the last quarter. Daiwa Securities Group Inc. grew its position in shares of CDK Global by 9.3% during the third quarter. Daiwa Securities Group Inc. now owns 4,700 shares of the software maker’s stock worth $226,000 after acquiring an additional 400 shares during the last quarter. Bartlett & Co. LLC grew its position in shares of CDK Global by 47.4% during the third quarter. Bartlett & Co. LLC now owns 4,461 shares of the software maker’s stock worth $215,000 after acquiring an additional 1,434 shares during the last quarter. First Mercantile Trust Co. bought a new position in CDK Global in the 3rd quarter valued at about $113,000. Finally, Coronation Fund Managers Ltd. bought a new position in CDK Global in the 3rd quarter valued at about $3,714,000. Institutional investors and hedge funds own 80.80% 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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