Does Wall Street Rate CDK Global Inc. (CDK) Shares A Sell?

At the last check on Friday, CDK Global Inc.’s (NASDAQ:CDK) stock was up $0.05, moving up 0.09 percent to $53.62. The average number of shares traded per day over the past five days has been 2,266,998 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.63 fall in that time frame. In the last twenty days, the average volume was 2,904,905, while in the previous 50 days, it was 2,327,640.

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Since last month, CDK stock retreated -1.67%. Shares of the company fell to $53.50 on 05/12/22, the lowest level in the past month. A 52-week high of $54.70 was reached on 04/08/22 after having rallying from a 52-week low of $38.53. Since the beginning of this year, CDK’s stock price has risen by 28.34% or $12.03, and marked a new high 21 times. However, the stock has declined by -1.97% since its 52-week high.

CDK Global Inc. (CDK) last reported insider trading activity 242 days ago on Sep 13. Brunz Lee J., the General Counsel and Secretary of the company, disposed of 1,447 shares for $42.96 on Sep 13. It resulted in a $62,169 divestment by the insider.

Valuation Metrics

Right now, CDK Global Inc. (CDK) has a P/E ratio of about 30.72. The stock’s beta is 1.02. Besides these, the trailing price-to-sales (P/S) ratio of 3.62, the price-to-book (PB) ratio of 14.48, and the price-to-cash flow ratio of 32.81 may also be considered.

The latest dividend of $0.15 per share was paid out, remained unchanged from last year’s $0.15. On Thursday November 16 2017, a $0.01 dividend increase was announced.

Financial Health

In the three months ended March 30, CDK Global Inc.’s quick ratio stood at 1.30, while its current ratio was 1.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 4.11, and the total debt-to-equity ratio was 4.13. On the profitability front, the trailing twelve-month gross margin is 48.00% percent. In the year ended March 30, EBITDA margin amounted to 32.03%, whereas operating margins totaled 24.50%. Based on annual data, CDK earned $798.2 million in gross profit and brought in $1.67 billion in revenue.

In CDK Global Inc.’s quarter-end financial report for March 30, it reported total debt of $1.78 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CDK’s revenue rose 5.79% to $436.7 million during the quarter, while net income inched up to $459.7 million. While analysts expected CDK Global Inc. to report $0.75 quarterly earnings, the actual figure was $0.78 per share, beating the consensus estimate by 4.00%. During the quarter, the company generated $139.0 million in EBITDA. The liabilities of CDK Global Inc. were 2.42 billion at the end of its most recent quarter ended March 30, and its total debt was $1.82 billion. The value of shareholders’ equity is $116.78 million.

Technical Picture

This quick technical analysis looks at CDK Global Inc.’s (CDK) price momentum. With a historical volatility rate of 6.15%, the RSI 9-day stood at 46.27% on 12 May.

With respect to its five-day moving average, the current CDK Global Inc. price is down by -1.15% percent or -$0.63. At present, CDK shares trade -1.22% below its 20-day simple moving average and +34.20% percent above its 100-day simple moving average. However, the stock is currently trading approximately +13.95% above its SMA50 and +11.52% above its SMA200.

Stochastic coefficient K was 24.82% and Stochastic coefficient D was 24.16%, while ATR was 0.32. Given the Stochastic reading of 26.44% for the 14-day period, the RSI (14) reading has been calculated as 57.71%. As of today, the MACD Oscillator reading stands at -0.36, while the 14-day reading stands at -0.46.

Analyst Ratings

CDK Global Inc. downgraded its rating on CDK Global Inc. (NASDAQ: CDK) to an Equal-weight in a note to investors on December 16, 2021. The analysts firm previously had an Overweight rating on the stock.CDK Global Inc. (CDK) has been rated Sell by analysts. According to 1 brokerage firm, CDK is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate CDK Global Inc. stock as buy, with 0 recommending it as overweight.

With a median target price of $48.00, the current consensus forecast for the stock is $48.00 – $48.00. Based on these forecasts, analysts predict CDK Global Inc. (CDK) will achieve an average price target of $48.00.


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