CDK Global, Inc. (CDK) Sees Significant Growth in Short Interest

CDK Global, Inc. (NASDAQ:CDK) was the recipient of a large increase in short interest in the month of August. As of August 15th, there was short interest totalling 5,876,547 shares, an increase of 46.7% from the July 31st total of 4,005,914 shares. Approximately 4.1% of the shares of the company are sold short. Based on an average trading volume of 1,138,261 shares, the days-to-cover ratio is currently 5.2 days.

Several hedge funds have recently modified their holdings of CDK. Alpha Windward LLC raised its stake in shares of CDK Global by 2.3% in the second quarter. Alpha Windward LLC now owns 1,618 shares of the software maker’s stock worth $100,000 after buying an additional 36 shares in the last quarter. TrimTabs Asset Management LLC raised its stake in shares of CDK Global by 88.8% in the first quarter. TrimTabs Asset Management LLC now owns 1,837 shares of the software maker’s stock worth $119,000 after buying an additional 864 shares in the last quarter. Bronfman E.L. Rothschild L.P. raised its stake in shares of CDK Global by 1.2% in the first quarter. Bronfman E.L. Rothschild L.P. now owns 1,979 shares of the software maker’s stock worth $129,000 after buying an additional 23 shares in the last quarter. Acrospire Investment Management LLC raised its stake in shares of CDK Global by 17.6% in the first quarter. Acrospire Investment Management LLC now owns 2,000 shares of the software maker’s stock worth $130,000 after buying an additional 300 shares in the last quarter. Finally, Penserra Capital Management LLC raised its stake in shares of CDK Global by 9.5% in the first quarter. Penserra Capital Management LLC now owns 2,622 shares of the software maker’s stock worth $170,000 after buying an additional 228 shares in the last quarter. 81.37% of the stock is owned by hedge funds and other institutional investors.

Several research analysts have recently commented on the stock. Zacks Investment Research cut shares of CDK Global from a “buy” rating to a “hold” rating in a report on Monday, May 8th. Evercore ISI upgraded shares of CDK Global from an “in-line” rating to an “outperform” rating and set a $72.00 price target on the stock in a research report on Monday, July 10th. TheStreet lowered shares of CDK Global from a “c” rating to a “d+” rating in a research report on Tuesday, August 1st. BidaskClub upgraded shares of CDK Global from a “hold” rating to a “buy” rating in a research report on Tuesday, July 25th. Finally, Wells Fargo & Company upgraded shares of CDK Global from a “market perform” rating to an “outperform” rating and set a $75.00 price target on the stock in a research report on Wednesday, June 21st. Three analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. CDK Global presently has an average rating of “Buy” and a consensus price target of $71.75.

CDK Global (NASDAQ:CDK) opened at 62.82 on Friday. The firm has a market cap of $8.80 billion, a price-to-earnings ratio of 31.57 and a beta of 0.74. CDK Global has a one year low of $53.46 and a one year high of $67.49. The stock’s 50 day moving average is $63.29 and its 200-day moving average is $63.68.

CDK Global (NASDAQ:CDK) last issued its earnings results on Tuesday, August 1st. The software maker reported $0.55 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.54 by $0.01. The firm had revenue of $565.40 million during the quarter, compared to analyst estimates of $556.68 million. CDK Global had a net margin of 13.31% and a return on equity of 204.80%. The business’s revenue was up 4.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.49 earnings per share. On average, equities research analysts expect that CDK Global will post $2.95 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Friday, September 29th. Stockholders of record on Monday, September 11th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.89%. The ex-dividend date is Friday, September 8th. CDK Global’s dividend payout ratio is currently 28.00%.

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About CDK Global

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.