Zacks Investment Research Upgrades CDK Global (NASDAQ:CDK) to Buy

CDK Global (NASDAQ:CDK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday, Zacks.com reports. The firm presently has a $60.00 target price on the software maker’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 12.49% from the company’s previous close.

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 equities analysts have also weighed in on the stock. BidaskClub upgraded shares of CDK Global from a “buy” rating to a “strong-buy” rating in a research report on Thursday, November 7th. Barrington Research restated a “buy” rating and set a $65.00 price objective on shares of CDK Global in a report on Monday, August 19th. Finally, ValuEngine lowered shares of CDK Global from a “hold” rating to a “sell” rating in a research report on Friday, November 8th. One 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’s stock. The company currently has an average rating of “Buy” and a consensus price target of $62.25.

Shares of CDK Global stock opened at $53.34 on Wednesday. The business’s fifty day simple moving average is $51.50 and its 200 day simple moving average is $48.91. The firm has a market capitalization of $6.53 billion, a P/E ratio of 16.99, a price-to-earnings-growth ratio of 1.59 and a beta of 0.91. CDK Global has a 12 month low of $41.50 and a 12 month high of $63.90.

CDK Global (NASDAQ:CDK) last posted its quarterly earnings data on Tuesday, November 5th. The software maker reported $0.79 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.69 by $0.10. The business had revenue of $494.60 million for the quarter, compared to analysts’ expectations of $485.00 million. CDK Global had a negative return on equity of 72.27% and a net margin of 5.32%. The business’s revenue was up 10.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.89 earnings per share. On average, research analysts anticipate that CDK Global will post 3.22 EPS for the current fiscal year.

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 value of $51,790.00. Following the completion of the sale, the general counsel now owns 42,569 shares of the company’s stock, valued at approximately $2,204,648.51. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders sold 2,000 shares of company stock valued at $98,045 over the last three months. Company insiders own 0.36% of the company’s stock.

Several hedge funds have recently made changes to their positions in CDK. BlackRock Inc. lifted its position in shares of CDK Global by 9.6% during the second quarter. BlackRock Inc. now owns 14,995,613 shares of the software maker’s stock worth $741,383,000 after acquiring an additional 1,313,730 shares in the last quarter. State Street Corp lifted its holdings in CDK Global by 8.7% during the 3rd quarter. State Street Corp now owns 6,180,878 shares of the software maker’s stock worth $297,238,000 after purchasing an additional 492,144 shares in the last quarter. Boston Partners boosted its stake in CDK Global by 58.0% in the 3rd quarter. Boston Partners now owns 5,206,525 shares of the software maker’s stock worth $250,431,000 after purchasing an additional 1,911,327 shares during the period. Bank of America Corp DE boosted its stake in CDK Global by 19.7% in the 2nd quarter. Bank of America Corp DE now owns 2,033,222 shares of the software maker’s stock worth $100,523,000 after purchasing an additional 335,048 shares during the period. Finally, LSV Asset Management grew its holdings in CDK Global by 673.9% during the 2nd quarter. LSV Asset Management now owns 1,263,000 shares of the software maker’s stock valued at $62,442,000 after buying an additional 1,099,800 shares in the last quarter. 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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