CDK Global’s (CDK) “Buy” Rating Reiterated at Barrington Research

CDK Global (NASDAQ:CDK)‘s stock had its “buy” rating restated by research analysts at Barrington Research in a research report issued to clients and investors on Monday, AnalystRatings.com reports.

The analysts wrote, “We would continue to be buyers of RST given the intrinsic value of its parts; continued strong growth at Lexia, which has been driven by a bookings CAGR of 26% since 2014; a more predictable/sustainable sales model as a result of the subscription transition, which will continue to benefit from sales team alignment as the company executes on its top- down and bottom-up go-to-market strategy; improving cash flow; and its already healthy balance sheet with no long-term debt. As such, we are reiterating our OUTPERFORM investment rating.””

A number of other analysts have also recently commented on the company. BidaskClub raised CDK Global from a “sell” rating to a “hold” rating in a research note on Wednesday, January 2nd. Zacks Investment Research upgraded CDK Global from a “sell” rating to a “hold” rating in a research report on Friday, January 11th. Oppenheimer set a $67.00 price objective on CDK Global and gave the company a “buy” rating in a research report on Tuesday, February 5th. Finally, ValuEngine upgraded CDK Global from a “sell” rating to a “hold” rating in a research report on Monday, March 25th. Four research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. CDK Global has a consensus rating of “Hold” and an average target price of $67.25.

Shares of NASDAQ:CDK opened at $62.39 on Monday. CDK Global has a 52 week low of $44.01 and a 52 week high of $67.97. The firm has a market capitalization of $7.78 billion, a PE ratio of 20.52 and a beta of 0.72.

CDK Global (NASDAQ:CDK) last released its quarterly earnings results on Tuesday, February 5th. The software maker reported $0.98 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.86 by $0.12. CDK Global had a negative return on equity of 135.00% and a net margin of 16.36%. The business had revenue of $590.40 million during the quarter, compared to analysts’ expectations of $578.91 million. During the same period in the previous year, the business posted $0.87 earnings per share. The firm’s revenue for the quarter was up 5.1% compared to the same quarter last year. Sell-side analysts expect that CDK Global will post 3.64 earnings per share for the current fiscal year.

A number of large investors have recently added to or reduced their stakes in the business. Bruderman Asset Management LLC boosted its holdings in shares of CDK Global by 722.7% in the 4th quarter. Bruderman Asset Management LLC now owns 543 shares of the software maker’s stock valued at $26,000 after buying an additional 477 shares during the last quarter. CX Institutional acquired a new stake in shares of CDK Global in the 4th quarter valued at approximately $27,000. Harel Insurance Investments & Financial Services Ltd. acquired a new stake in shares of CDK Global in the 1st quarter valued at approximately $33,000. Essex Investment Management Co. LLC acquired a new stake in shares of CDK Global in the 4th quarter valued at approximately $30,000. Finally, Laurel Wealth Advisors LLC acquired a new stake in shares of CDK Global in the 4th quarter valued at approximately $32,000. 81.97% of the stock is owned by hedge funds and other institutional investors.

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.

Featured Article: Why is total return important?

Receive News & Ratings for CDK Global Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CDK Global and related companies with MarketBeat.com's FREE daily email newsletter.