CDK Global Inc (NASDAQ:CDK) Expected to Announce Quarterly Sales of $492.30 Million

Equities research analysts predict that CDK Global Inc (NASDAQ:CDK) will announce $492.30 million in sales for the current fiscal quarter, Zacks Investment Research reports. Three analysts have issued estimates for CDK Global’s earnings. The lowest sales estimate is $483.70 million and the highest is $497.80 million. CDK Global reported sales of $590.40 million in the same quarter last year, which would indicate a negative year-over-year growth rate of 16.6%. The company is expected to announce its next quarterly earnings report after the market closes on Tuesday, February 4th.

According to Zacks, analysts expect that CDK Global will report full year sales of $2.02 billion for the current financial year, with estimates ranging from $2.01 billion to $2.04 billion. For the next financial year, analysts forecast that the business will post sales of $2.12 billion, with estimates ranging from $2.10 billion to $2.14 billion. Zacks’ sales averages are an average based on a survey of research firms that cover CDK Global.

CDK Global (NASDAQ:CDK) last released its quarterly earnings results on Tuesday, November 5th. The software maker reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.69 by $0.10. CDK Global had a negative return on equity of 72.27% and a net margin of 5.32%. The business had revenue of $494.60 million during the quarter, compared to the consensus estimate of $485.00 million. During the same quarter in the previous year, the company posted $0.89 EPS. The business’s revenue was up 10.8% on a year-over-year basis.

Several research analysts recently issued reports on CDK shares. Zacks Investment Research upgraded CDK Global from a “hold” rating to a “buy” rating and set a $62.00 price objective for the company in a research report on Tuesday, January 7th. ValuEngine raised CDK Global from a “sell” rating to a “hold” rating in a research report on Tuesday, December 31st. Wells Fargo & Co raised CDK Global from an “equal weight” rating to an “overweight” rating and set a $65.00 price target for the company in a report on Thursday, January 9th. Morgan Stanley began coverage on CDK Global in a report on Thursday, December 5th. They issued an “equal weight” rating and a $57.00 price target for the company. Finally, BidaskClub downgraded CDK Global from a “buy” rating to a “hold” rating in a research report on Thursday. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $63.20.

NASDAQ:CDK traded down $0.79 during mid-day trading on Tuesday, hitting $54.51. 497,473 shares of the company’s stock traded hands, compared to its average volume of 620,663. The firm’s 50 day simple moving average is $55.08 and its 200 day simple moving average is $50.34. CDK Global has a 1 year low of $41.50 and a 1 year high of $63.90. The company has a market cap of $6.70 billion, a PE ratio of 60.57, a price-to-earnings-growth ratio of 1.63 and a beta of 0.92.

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Monday, December 2nd were given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.10%. The ex-dividend date of this dividend was Friday, November 29th. CDK Global’s dividend payout ratio is presently 19.11%.

In other news, General Counsel Lee J. Brunz sold 1,000 shares of the firm’s stock in a transaction on Monday, December 16th. The stock was sold at an average price of $55.32, for a total transaction of $55,320.00. Following the sale, the general counsel now owns 41,569 shares in the company, valued at $2,299,597.08. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold 3,000 shares of company stock worth $163,340 in the last three months. Insiders own 0.36% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Boston Partners grew its holdings in CDK Global by 58.0% in the third quarter. Boston Partners now owns 5,206,525 shares of the software maker’s stock valued at $250,431,000 after purchasing an additional 1,911,327 shares during the period. BlackRock Inc. grew its position in CDK Global by 9.6% during the second quarter. BlackRock Inc. now owns 14,995,613 shares of the software maker’s stock valued at $741,383,000 after acquiring an additional 1,313,730 shares during the period. Nuveen Asset Management LLC grew its position in CDK Global by 4,093.4% during the second quarter. Nuveen Asset Management LLC now owns 808,571 shares of the software maker’s stock valued at $39,976,000 after acquiring an additional 789,289 shares during the period. State Street Corp grew its position in CDK Global by 8.7% during the third quarter. State Street Corp now owns 6,180,878 shares of the software maker’s stock valued at $297,238,000 after acquiring an additional 492,144 shares during the period. Finally, Eaton Vance Management acquired a new stake in CDK Global during the second quarter worth about $17,926,000. 81.58% 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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