Wells Fargo & Co Downgrades CDK Global (CDK) to Market Perform

CDK Global (NASDAQ:CDK) was downgraded by stock analysts at Wells Fargo & Co from an “outperform” rating to a “market perform” rating in a research note issued on Thursday, Marketbeat reports.

Other equities research analysts have also issued reports about the company. Morgan Stanley dropped their price target on CDK Global from $75.00 to $68.00 and set an “equal weight” rating on the stock in a research report on Wednesday, August 15th. ValuEngine upgraded CDK Global from a “sell” rating to a “hold” rating in a research report on Thursday, September 13th. Barrington Research restated a “buy” rating and set a $80.00 price target on shares of CDK Global in a research report on Monday, November 5th. Oppenheimer set a $67.00 target price on CDK Global and gave the stock a “buy” rating in a report on Wednesday. Finally, BidaskClub raised CDK Global from a “sell” rating to a “hold” rating in a report on Wednesday, October 31st. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the company’s stock. CDK Global has an average rating of “Hold” and an average target price of $72.20.

NASDAQ CDK opened at $50.77 on Thursday. CDK Global has a twelve month low of $50.50 and a twelve month high of $76.04. The company has a market cap of $7.39 billion, a P/E ratio of 16.70, a PEG ratio of 1.54 and a beta of 0.76.

CDK Global (NASDAQ:CDK) last released its quarterly earnings results on Wednesday, November 7th. The software maker reported $0.89 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.83 by $0.06. CDK Global had a negative return on equity of 235.59% and a net margin of 16.75%. The company had revenue of $554.50 million for the quarter, compared to analyst estimates of $560.52 million. During the same period in the previous year, the company posted $0.68 earnings per share. The firm’s revenue was down 2.0% on a year-over-year basis. On average, research analysts predict that CDK Global will post 3.72 EPS for the current fiscal year.

In other CDK Global news, VP Jennifer A. Williams sold 4,114 shares of the business’s stock in a transaction on Monday, August 27th. The stock was sold at an average price of $61.65, for a total value of $253,628.10. Following the sale, the vice president now directly owns 5,012 shares of the company’s stock, valued at $308,989.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.50% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in the business. DekaBank Deutsche Girozentrale boosted its holdings in CDK Global by 1.3% in the third quarter. DekaBank Deutsche Girozentrale now owns 143,682 shares of the software maker’s stock worth $9,023,000 after acquiring an additional 1,780 shares in the last quarter. CIBC World Markets Inc. boosted its holdings in CDK Global by 103.0% in the third quarter. CIBC World Markets Inc. now owns 28,165 shares of the software maker’s stock worth $1,762,000 after acquiring an additional 14,290 shares in the last quarter. American International Group Inc. boosted its holdings in CDK Global by 5.6% in the third quarter. American International Group Inc. now owns 263,964 shares of the software maker’s stock worth $16,514,000 after acquiring an additional 14,099 shares in the last quarter. BlackRock Inc. boosted its holdings in CDK Global by 4.8% in the third quarter. BlackRock Inc. now owns 14,017,687 shares of the software maker’s stock worth $876,946,000 after acquiring an additional 643,215 shares in the last quarter. Finally, Martingale Asset Management L P boosted its holdings in CDK Global by 6.6% in the third quarter. Martingale Asset Management L P now owns 536,357 shares of the software maker’s stock worth $33,555,000 after acquiring an additional 32,980 shares in the last quarter. 82.16% of the stock is currently owned by institutional investors and hedge funds.

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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