Zacks Investment Research Downgrades CDK Global (NASDAQ:CDK) to Hold

Zacks Investment Research downgraded shares of CDK Global (NASDAQ:CDK) from a buy rating to a hold rating in a report issued on Tuesday 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. “

Several other analysts have also commented on the stock. Barrington Research reiterated a buy rating and issued a $65.00 price target on shares of CDK Global in a research report on Monday, August 19th. BidaskClub upgraded CDK Global from a buy rating to a strong-buy rating in a research report on Thursday, November 7th. Finally, ValuEngine downgraded CDK Global from a hold rating to a sell rating in a research report on Friday, November 8th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. The company has an average rating of Buy and an average target price of $62.25.

Shares of CDK Global stock traded up $0.25 on Tuesday, hitting $53.59. The company’s stock had a trading volume of 25,129 shares, compared to its average volume of 904,868. The company has a market capitalization of $6.53 billion, a P/E ratio of 17.07, a price-to-earnings-growth ratio of 1.59 and a beta of 0.91. CDK Global has a 52-week low of $41.50 and a 52-week high of $63.90. The firm has a fifty day moving average price of $51.50 and a 200-day moving average price of $48.91.

CDK Global (NASDAQ:CDK) last posted its earnings results on Tuesday, November 5th. The software maker reported $0.79 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.69 by $0.10. The firm had revenue of $494.60 million during the quarter, compared to the consensus estimate of $485.00 million. CDK Global had a net margin of 5.32% and a negative return on equity of 72.27%. The firm’s revenue for the quarter was up 10.8% on a year-over-year basis. During the same period last year, the firm posted $0.89 EPS. As a group, analysts expect that CDK Global will post 3.22 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Monday, December 2nd will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.12%. The ex-dividend date is Friday, November 29th. CDK Global’s payout ratio is currently 19.11%.

In related news, General Counsel Lee J. Brunz sold 1,000 shares of CDK Global stock in a transaction dated Thursday, November 14th. The stock was sold at an average price of $51.79, for a total transaction of $51,790.00. Following the completion of the sale, the general counsel now owns 42,569 shares in the company, valued at approximately $2,204,648.51. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. In the last ninety days, insiders have sold 2,000 shares of company stock worth $98,045. Corporate insiders own 0.36% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Resources Management Corp CT ADV acquired a new position in CDK Global in the 3rd quarter valued at $205,000. Millennium Management LLC raised its stake in CDK Global by 87.4% during the third quarter. Millennium Management LLC now owns 188,871 shares of the software maker’s stock worth $9,082,000 after purchasing an additional 88,108 shares during the period. Squarepoint Ops LLC raised its stake in CDK Global by 357.5% during the third quarter. Squarepoint Ops LLC now owns 47,687 shares of the software maker’s stock worth $2,293,000 after purchasing an additional 37,264 shares during the period. Banco de Sabadell S.A boosted its holdings in shares of CDK Global by 13.7% in the 3rd quarter. Banco de Sabadell S.A now owns 60,982 shares of the software maker’s stock valued at $2,917,000 after purchasing an additional 7,332 shares during the last quarter. Finally, California State Teachers Retirement System grew its stake in shares of CDK Global by 1.6% during the 3rd quarter. California State Teachers Retirement System now owns 208,168 shares of the software maker’s stock valued at $10,011,000 after buying an additional 3,212 shares during the period. Hedge funds and other institutional investors own 80.14% of the company’s stock.

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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