CDK Global (NASDAQ:CDK) released its earnings results on Wednesday. The software maker reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.06, MarketWatch Earnings reports. CDK Global had a negative return on equity of 235.59% and a net margin of 16.75%. The business had revenue of $554.50 million for the quarter, compared to analyst estimates of $560.52 million. During the same quarter in the prior year, the company posted $0.68 earnings per share. CDK Global’s revenue was down 2.0% on a year-over-year basis. CDK Global updated its FY19 guidance to $3.70-3.80 EPS.
NASDAQ:CDK opened at $51.03 on Friday. The company has a market capitalization of $7.39 billion, a price-to-earnings ratio of 16.79, a price-to-earnings-growth ratio of 1.54 and a beta of 0.76. CDK Global has a 12-month low of $50.83 and a 12-month high of $76.04.
Several research firms recently issued reports on CDK. Morgan Stanley set a $62.00 target price on CDK Global and gave the stock a “hold” rating in a report on Thursday. BidaskClub upgraded CDK Global from a “strong sell” rating to a “sell” rating in a report on Wednesday, October 24th. Wells Fargo & Co lowered CDK Global from an “outperform” rating to a “market perform” rating in a report on Thursday. Zacks Investment Research upgraded CDK Global from a “sell” rating to a “hold” rating in a report on Tuesday, October 16th. Finally, Oppenheimer set a $67.00 price objective on CDK Global and gave the company a “buy” rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the company’s stock. CDK Global presently has an average rating of “Hold” and an average price target of $72.20.
Several hedge funds and other institutional investors have recently made changes to their positions in CDK. Boston Partners bought a new position in shares of CDK Global during the second quarter worth approximately $156,134,000. Senator Investment Group LP increased its stake in shares of CDK Global by 43.1% during the second quarter. Senator Investment Group LP now owns 3,005,000 shares of the software maker’s stock worth $195,475,000 after purchasing an additional 905,000 shares during the period. FMR LLC increased its stake in shares of CDK Global by 35.1% during the second quarter. FMR LLC now owns 2,846,088 shares of the software maker’s stock worth $185,138,000 after purchasing an additional 739,661 shares during the period. Clarkston Capital Partners LLC acquired a new stake in CDK Global during the third quarter worth approximately $43,048,000. Finally, KBC Group NV grew its position in CDK Global by 302.3% during the second quarter. KBC Group NV now owns 753,339 shares of the software maker’s stock worth $49,005,000 after buying an additional 566,066 shares in the last quarter. Institutional investors own 82.16% 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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