CDK Global Inc (NASDAQ:CDK) Short Interest Up 7.6% in August

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CDK Global Inc (NASDAQ:CDK) saw a significant growth in short interest during the month of August. As of August 31st, there was short interest totalling 3,277,900 shares, a growth of 7.6% from the July 31st total of 3,047,500 shares. Currently, 2.7% of the company’s shares are short sold. Based on an average trading volume of 898,700 shares, the days-to-cover ratio is presently 3.6 days.

CDK has been the subject of a number of analyst reports. BidaskClub upgraded CDK Global from a “sell” rating to a “hold” rating in a research report on Friday. ValuEngine downgraded CDK Global from a “hold” rating to a “sell” rating in a research report on Wednesday, September 4th. Zacks Investment Research downgraded CDK Global from a “hold” rating to a “strong sell” rating in a research report on Monday, August 19th. Finally, Barrington Research restated a “buy” rating and set a $65.00 price objective on shares of CDK Global in a research report on Monday, August 19th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $64.00.

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

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CDK. Dimensional Fund Advisors LP grew 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 purchasing an additional 177,009 shares during the period. Geode Capital Management LLC grew its stake in CDK Global by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 1,283,581 shares of the software maker’s stock worth $61,420,000 after purchasing an additional 14,834 shares during the period. Stevens Capital Management LP acquired a new stake in CDK Global during the first quarter worth approximately $395,000. Nissay Asset Management Corp Japan ADV grew its stake in CDK Global by 2.7% during the first quarter. Nissay Asset Management Corp Japan ADV now owns 11,736 shares of the software maker’s stock worth $690,000 after purchasing an additional 314 shares during the period. Finally, First Allied Advisory Services Inc. acquired a new stake in CDK Global during the first quarter worth approximately $345,000. 81.38% of the stock is owned by institutional investors and hedge funds.

NASDAQ CDK traded down $0.83 during trading hours on Friday, hitting $46.30. 401,392 shares of the company’s stock were exchanged, compared to its average volume of 898,427. The stock has a 50-day simple moving average of $46.61 and a 200 day simple moving average of $52.28. CDK Global has a 1-year low of $41.50 and a 1-year high of $64.77. The firm has a market cap of $5.71 billion, a price-to-earnings ratio of 14.75, a PEG ratio of 1.41 and a beta of 0.90.

CDK Global (NASDAQ:CDK) last released its earnings results on Tuesday, August 13th. The software maker reported $0.88 EPS for the quarter, topping the consensus estimate of $0.86 by $0.02. CDK Global had a negative return on equity of 90.04% and a net margin of 5.55%. The business had revenue of $488.60 million during the quarter, compared to analysts’ expectations of $585.10 million. During the same quarter last year, the firm posted $0.87 earnings per share. The firm’s revenue was up 7.6% on a year-over-year basis. As a group, equities research analysts forecast that CDK Global will post 3.19 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 27th. Investors of record on Tuesday, September 3rd will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, August 30th. This represents a $0.60 annualized dividend and a yield of 1.30%. CDK Global’s dividend payout ratio is currently 19.11%.

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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