CDK Global (CDK) Stock Rating Lowered by Zacks Investment Research

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Zacks Investment Research lowered shares of CDK Global (NASDAQ:CDK) from a buy rating to a hold rating in a research report released 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. “

Several other research analysts have also issued reports on the company. BidaskClub lowered CDK Global from a buy rating to a hold rating in a research report on Wednesday, May 1st. Oppenheimer set a $67.00 target price on CDK Global and gave the stock a buy rating in a research report on Tuesday, February 5th. ValuEngine raised CDK Global from a sell rating to a hold rating in a research report on Monday, March 25th. Finally, Barrington Research reaffirmed a buy rating on shares of CDK Global in a research report on Monday, April 29th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average target price of $67.75.

NASDAQ CDK opened at $53.23 on Monday. CDK Global has a twelve month low of $44.01 and a twelve month high of $67.97. The firm has a market cap of $6.79 billion, a P/E ratio of 17.51 and a beta of 0.71.

CDK Global (NASDAQ:CDK) last released its quarterly earnings data on Tuesday, April 30th. The software maker reported $0.98 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.90 by $0.08. CDK Global had a negative return on equity of 113.53% and a net margin of 16.34%. The company had revenue of $602.10 million for the quarter, compared to the consensus estimate of $596.47 million. During the same quarter last year, the business posted $0.85 EPS. Research analysts forecast that CDK Global will post 3.62 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 27th. Investors of record on Monday, June 3rd will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.13%. The ex-dividend date of this dividend is Friday, May 31st. CDK Global’s dividend payout ratio is currently 19.74%.

A number of large investors have recently made changes to their positions in the stock. LSV Asset Management bought a new position in shares of CDK Global in the 4th quarter worth about $2,922,000. Raymond James Financial Services Advisors Inc. raised its position in shares of CDK Global by 5.9% in the 4th quarter. Raymond James Financial Services Advisors Inc. now owns 16,777 shares of the software maker’s stock worth $803,000 after acquiring an additional 940 shares in the last quarter. Cerebellum GP LLC raised its position in shares of CDK Global by 85.6% in the 4th quarter. Cerebellum GP LLC now owns 5,438 shares of the software maker’s stock worth $260,000 after acquiring an additional 2,508 shares in the last quarter. Arizona State Retirement System raised its position in shares of CDK Global by 7.7% in the 4th quarter. Arizona State Retirement System now owns 126,553 shares of the software maker’s stock worth $6,059,000 after acquiring an additional 9,075 shares in the last quarter. Finally, Texas Permanent School Fund raised its position in shares of CDK Global by 3.5% in the 4th quarter. Texas Permanent School Fund now owns 84,268 shares of the software maker’s stock worth $4,035,000 after acquiring an additional 2,823 shares in the last quarter. 82.40% of the stock is 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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