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

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Zacks Investment Research cut shares of CDK Global (NASDAQ:CDK) from a hold rating to a strong sell rating in a report released on Monday morning, Zacks.com reports.

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 subject of several other research reports. Barrington Research reaffirmed a buy rating and issued a $65.00 price objective on shares of CDK Global in a report on Monday. ValuEngine raised shares of CDK Global from a sell rating to a hold rating in a report on Thursday, August 1st. Finally, BidaskClub downgraded shares of CDK Global from a hold rating to a sell rating in a report on Thursday, August 15th. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the stock. The company currently has an average rating of Hold and an average target price of $64.00.

CDK stock opened at $43.70 on Monday. The company has a market capitalization of $5.28 billion, a P/E ratio of 12.31, a PEG ratio of 1.37 and a beta of 0.85. The company has a 50-day simple moving average of $49.59 and a 200 day simple moving average of $53.55. CDK Global has a fifty-two week low of $43.10 and a fifty-two week high of $64.77.

CDK Global (NASDAQ:CDK) last posted its quarterly earnings data on Tuesday, August 13th. The software maker reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.02. The business had revenue of $488.60 million during the quarter, compared to the consensus estimate of $585.10 million. CDK Global had a net margin of 5.55% and a negative return on equity of 90.04%. The company’s quarterly revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.87 earnings per share. On average, sell-side analysts expect that CDK Global will post 3.19 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 27th. Shareholders of record on Tuesday, September 3rd will be issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 1.37%. The ex-dividend date of this dividend is Friday, August 30th. CDK Global’s payout ratio is 19.11%.

In other CDK Global news, General Counsel Lee J. Brunz sold 1,000 shares of the company’s stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $50.74, for a total value of $50,740.00. Following the completion of the sale, the general counsel now directly owns 37,927 shares of the company’s stock, valued at approximately $1,924,415.98. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 2,000 shares of company stock valued at $96,925 over the last three months. 0.50% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of CDK. Berman Capital Advisors LLC raised its holdings in CDK Global by 76.0% during the 2nd quarter. Berman Capital Advisors LLC now owns 623 shares of the software maker’s stock worth $30,000 after buying an additional 269 shares during the period. Cordasco Financial Network acquired a new stake in CDK Global during the 2nd quarter worth about $33,000. Wealthcare Advisory Partners LLC raised its holdings in CDK Global by 224.9% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 692 shares of the software maker’s stock worth $34,000 after buying an additional 479 shares during the period. Point72 Asset Management L.P. acquired a new stake in CDK Global during the 2nd quarter worth about $44,000. Finally, Alpha Windward LLC raised its holdings in CDK Global by 41.1% during the 2nd quarter. Alpha Windward LLC now owns 965 shares of the software maker’s stock worth $51,000 after buying an additional 281 shares during the period. 82.49% of the stock is owned by institutional investors.

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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