CDK Global Inc. (CDK) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of CDK Global Inc. (NASDAQ:CDK) from a hold rating to a buy rating in a research note released on Tuesday. They currently have $63.00 price objective on the stock.
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. “
Shares of CDK Global (NASDAQ:CDK) traded up 0.34% on Tuesday, hitting $56.60. The stock had a trading volume of 93,751 shares. CDK Global has a one year low of $39.67 and a one year high of $60.09. The firm has a 50 day moving average price of $57.54 and a 200 day moving average price of $54.13. The company has a market capitalization of $8.50 billion, a P/E ratio of 37.48 and a beta of 0.65.
CDK Global (NASDAQ:CDK) last announced its quarterly earnings data on Wednesday, August 3rd. The company reported $0.49 EPS for the quarter, beating the Zacks’ consensus estimate of $0.46 by $0.03. The firm had revenue of $542.20 million for the quarter, compared to analyst estimates of $533.84 million. CDK Global had a return on equity of 45.25% and a net margin of 11.32%. The business’s quarterly revenue was up 7.8% compared to the same quarter last year. During the same period last year, the company earned $0.28 EPS. On average, equities research analysts predict that CDK Global will post $2.32 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 16th were paid a $0.135 dividend. This represents a $0.54 dividend on an annualized basis and a dividend yield of 0.96%. The ex-dividend date was Wednesday, September 14th. CDK Global’s dividend payout ratio (DPR) is currently 35.76%.
A number of hedge funds have recently modified their holdings of CDK. WFG Advisors LP increased its stake in shares of CDK Global by 0.8% in the second quarter. WFG Advisors LP now owns 1,803 shares of the company’s stock valued at $100,000 after buying an additional 15 shares during the last quarter. Van ECK Associates Corp increased its stake in shares of CDK Global by 37.5% in the second quarter. Van ECK Associates Corp now owns 2,087 shares of the company’s stock valued at $116,000 after buying an additional 569 shares during the last quarter. M&R Capital Management Inc. acquired a new stake in shares of CDK Global during the second quarter valued at approximately $182,000. Strs Ohio increased its stake in shares of CDK Global by 21.7% in the second quarter. Strs Ohio now owns 3,394 shares of the company’s stock valued at $188,000 after buying an additional 606 shares during the last quarter. Finally, Point72 Asia Hong Kong Ltd acquired a new stake in shares of CDK Global during the second quarter valued at approximately $196,000. 85.36% of the stock is currently owned by institutional investors and hedge funds.
About CDK Global
CDK Global, Inc is a provider of integrated information technology and digital marketing/advertising solutions to the automotive retail industry. The Company’s segments are Automotive Retail North America (ARNA), Automotive Retail International (ARI) and Digital Marketing (DM). The Company’s solutions automate workflow processes from pre-sale targeted advertising and marketing campaigns to the sale, financing, insurance, parts supply, and repair and maintenance of vehicles.
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