CDK Global Target of Unusually High Options Trading (NASDAQ:CDK)

CDK Global Inc (NASDAQ:CDK) was the recipient of unusually large options trading on Wednesday. Stock investors purchased 6,314 call options on the company. This is an increase of 1,010% compared to the typical volume of 569 call options.

Several research firms have commented on CDK. BidaskClub downgraded CDK Global from a “hold” rating to a “sell” rating in a report on Tuesday, January 23rd. Barrington Research set a $75.00 price objective on CDK Global and gave the stock a “buy” rating in a report on Tuesday, October 31st. Zacks Investment Research downgraded CDK Global from a “buy” rating to a “hold” rating in a report on Friday, November 3rd. TheStreet upgraded CDK Global from a “c+” rating to a “b-” rating in a report on Thursday, October 19th. Finally, Wells Fargo & Co restated an “outperform” rating and set a $80.00 price objective (up from $75.00) on shares of CDK Global in a report on Wednesday, January 31st. One analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the stock. CDK Global has an average rating of “Hold” and an average price target of $76.80.

Shares of CDK Global (NASDAQ CDK) traded up $0.19 during trading hours on Friday, hitting $66.66. The stock had a trading volume of 1,092,355 shares, compared to its average volume of 1,292,903. CDK Global has a twelve month low of $59.33 and a twelve month high of $76.04. The stock has a market cap of $8,969.70, a P/E ratio of 29.50, a PEG ratio of 1.36 and a beta of 0.67. The company has a debt-to-equity ratio of -11.19, a current ratio of 1.97 and a quick ratio of 1.97.

CDK Global (NASDAQ:CDK) last announced its quarterly earnings results on Tuesday, January 30th. The software maker reported $0.87 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.70 by $0.17. CDK Global had a negative return on equity of 5,261.95% and a net margin of 14.29%. The business had revenue of $561.70 million for the quarter, compared to the consensus estimate of $564.94 million. During the same period last year, the business posted $0.55 EPS. The business’s revenue was up 2.5% compared to the same quarter last year. sell-side analysts forecast that CDK Global will post 3.26 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 29th. Stockholders of record on Thursday, March 1st will be issued a $0.15 dividend. The ex-dividend date of this dividend is Wednesday, February 28th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.90%. CDK Global’s dividend payout ratio is presently 26.55%.

Large investors have recently made changes to their positions in the company. D.A. Davidson & CO. grew its stake in CDK Global by 5.6% during the 2nd quarter. D.A. Davidson & CO. now owns 3,130 shares of the software maker’s stock worth $194,000 after buying an additional 167 shares during the last quarter. Zacks Investment Management grew its stake in CDK Global by 3.0% during the 2nd quarter. Zacks Investment Management now owns 9,374 shares of the software maker’s stock worth $582,000 after buying an additional 276 shares during the last quarter. Mutual of America Capital Management LLC grew its stake in CDK Global by 0.4% during the 2nd quarter. Mutual of America Capital Management LLC now owns 116,298 shares of the software maker’s stock worth $7,217,000 after buying an additional 499 shares during the last quarter. Ameritas Investment Partners Inc. grew its stake in CDK Global by 1.4% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 51,017 shares of the software maker’s stock worth $3,165,000 after buying an additional 703 shares during the last quarter. Finally, HL Financial Services LLC grew its stake in CDK Global by 6.5% during the 3rd quarter. HL Financial Services LLC now owns 13,335 shares of the software maker’s stock worth $841,000 after buying an additional 813 shares during the last quarter. Institutional investors and hedge funds own 89.73% of the company’s stock.

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CDK Global Company Profile

CDK Global, Inc provides integrated information technology and digital marketing solutions. The Company’s segments include Retail Solutions North America, Advertising North America and CDK International. Through its Retail Solutions North America segment, the Company provides technology-based solutions, including automotive Website platforms, that help automotive retailers, original equipment manufacturers (OEMs) and other industry participants manage the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles.

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