BidaskClub Lowers CDK Global (CDK) to Strong Sell

BidaskClub downgraded shares of CDK Global (NASDAQ:CDK) from a sell rating to a strong sell rating in a research note issued to investors on Wednesday.

A number of other equities analysts have also recently issued reports on the company. Zacks Investment Research upgraded CDK Global from a hold rating to a buy rating and set a $80.00 price target on the stock in a report on Wednesday, January 31st. Morgan Stanley increased their price target on CDK Global from $76.00 to $77.00 and gave the stock an equal weight rating in a report on Wednesday, January 31st. Wells Fargo & Co restated an outperform rating and set a $80.00 price target (up from $75.00) on shares of CDK Global in a report on Wednesday, January 31st. Finally, Barrington Research cut CDK Global from an outperform rating to a market perform rating and set a $75.00 price target on the stock. in a report on Wednesday, January 17th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus price target of $76.80.

CDK Global (NASDAQ:CDK) opened at $69.59 on Wednesday. The stock has a market capitalization of $9,292.61, a P/E ratio of 25.11, a price-to-earnings-growth ratio of 1.41 and a beta of 0.67. CDK Global has a twelve month low of $59.33 and a twelve month high of $76.04. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of -11.19.

CDK Global (NASDAQ:CDK) last posted its quarterly earnings results on Tuesday, January 30th. The software maker reported $0.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.70 by $0.17. The firm had revenue of $561.70 million for the quarter, compared to analysts’ expectations of $564.94 million. CDK Global had a negative return on equity of 5,261.95% and a net margin of 14.29%. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.55 EPS. sell-side analysts anticipate that CDK Global will post 3.26 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 29th. Stockholders of record on Thursday, March 1st will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.86%. The ex-dividend date is Wednesday, February 28th. CDK Global’s payout ratio is 26.55%.

Large investors have recently modified their holdings of the company. Macquarie Group Ltd. acquired a new position in shares of CDK Global during the third quarter worth approximately $145,000. Bredin Investment LLC purchased a new stake in CDK Global in the 4th quarter valued at $203,000. Overbrook Management Corp purchased a new stake in CDK Global in the 4th quarter valued at $203,000. BB&T Corp purchased a new stake in CDK Global in the 4th quarter valued at $208,000. Finally, Retirement Income Solutions Inc purchased a new stake in CDK Global in the 4th quarter valued at $209,000. 87.85% of the stock is currently owned by institutional investors.

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About CDK Global

CDK Global, Inc provides integrated information technology and digital marketing solutions. The Company’s segments include Retail Solutions North America, Advertising North America and CDK International. Through its Retail Solutions North America segment, the Company provides technology-based solutions, including automotive Website platforms, that help automotive retailers, original equipment manufacturers (OEMs) and other industry participants manage the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles.

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