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

CDK Global (NASDAQ:CDK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday, 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 a number of other research reports. BidaskClub downgraded CDK Global from a “hold” rating to a “sell” rating in a report on Saturday. Wells Fargo & Co upgraded 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 lowered their price target on CDK Global from $60.00 to $35.00 and set an “equal weight” rating for the company in a report on Wednesday, March 25th. Oppenheimer lowered their price target on CDK Global from $67.00 to $55.00 and set an “outperform” rating for the company in a report on Wednesday, April 1st. Finally, ValuEngine downgraded CDK Global from a “hold” rating to a “sell” rating in a report on Thursday. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $55.80.

NASDAQ CDK traded up $3.03 on Monday, reaching $33.06. The company had a trading volume of 954,252 shares, compared to its average volume of 932,713. The stock’s 50 day moving average is $40.47 and its 200-day moving average is $49.18. The stock has a market cap of $3.65 billion, a price-to-earnings ratio of 87.00, a PEG ratio of 0.87 and a beta of 1.29. CDK Global has a 52 week low of $29.12 and a 52 week high of $63.90.

CDK Global (NASDAQ:CDK) last released its quarterly earnings data on Tuesday, February 4th. The software maker reported $0.80 EPS for the quarter, meeting analysts’ consensus estimates of $0.80. The business had revenue of $499.60 million during the quarter, compared to the consensus estimate of $493.00 million. CDK Global had a negative return on equity of 63.55% and a net margin of 2.36%. The firm’s revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.83 earnings per share. As a group, equities research analysts predict that CDK Global will post 3.14 earnings per share for the current fiscal year.

In other news, General Counsel Lee J. Brunz sold 1,000 shares of the company’s stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $52.53, for a total transaction of $52,530.00. Following the completion of the transaction, the general counsel now directly owns 39,569 shares of the company’s stock, valued at $2,078,559.57. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.36% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. State Street Corp boosted its position in CDK Global by 2.4% during the fourth quarter. State Street Corp now owns 6,330,080 shares of the software maker’s stock valued at $346,129,000 after purchasing an additional 149,202 shares during the last quarter. Boston Partners boosted its position in CDK Global by 58.0% during 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 last quarter. Capital International Investors acquired a new position in CDK Global during the fourth quarter valued at approximately $240,921,000. Clarkston Capital Partners LLC boosted its position in CDK Global by 2.1% during the fourth quarter. Clarkston Capital Partners LLC now owns 2,609,706 shares of the software maker’s stock valued at $142,699,000 after purchasing an additional 54,200 shares during the last quarter. Finally, Bank of America Corp DE lifted its position in shares of CDK Global by 2.7% in the fourth quarter. Bank of America Corp DE now owns 1,928,871 shares of the software maker’s stock valued at $105,470,000 after buying an additional 50,243 shares during the last quarter. 84.51% of the stock is owned by hedge funds and other 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.

Further Reading: Cash Asset Ratio

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