CDK Global Sees Unusually High Options Volume (NASDAQ:CDK)

CDK Global Inc (NASDAQ:CDK) was the target of unusually large options trading activity on Tuesday. Stock investors acquired 784 call options on the company. This is an increase of 1,325% compared to the typical volume of 55 call options.

NASDAQ CDK traded down $2.39 during mid-day trading on Wednesday, reaching $45.04. 736,956 shares of the stock were exchanged, compared to its average volume of 957,229. CDK Global has a 1-year low of $44.01 and a 1-year high of $64.77. The firm’s fifty day simple moving average is $50.45. The firm has a market capitalization of $5.92 billion, a PE ratio of 14.82, a PEG ratio of 1.26 and a beta of 0.85.

CDK Global (NASDAQ:CDK) last announced its earnings results on Tuesday, August 13th. The software maker reported $0.88 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.86 by $0.02. CDK Global had a net margin of 16.34% and a negative return on equity of 113.53%. The firm had revenue of $488.60 million for the quarter, compared to analyst estimates of $585.10 million. During the same quarter last year, the business earned $0.87 earnings per share. CDK Global’s revenue was up 7.6% compared to the same quarter last year. As a group, equities analysts expect that CDK Global will post 3.62 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, September 27th. Investors of record on Tuesday, September 3rd will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, August 30th. This represents a $0.60 dividend on an annualized basis and a yield of 1.33%. CDK Global’s dividend payout ratio (DPR) is currently 19.74%.

In other news, General Counsel Lee J. Brunz sold 1,000 shares of the firm’s stock in a transaction that occurred on Monday, July 15th. The shares were sold at an average price of $50.74, for a total transaction of $50,740.00. Following the completion of the transaction, the general counsel now directly owns 37,927 shares of the company’s stock, valued at approximately $1,924,415.98. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 0.50% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Sterling Capital Management LLC lifted its holdings in shares of CDK Global by 4.4% during the 2nd quarter. Sterling Capital Management LLC now owns 870,878 shares of the software maker’s stock valued at $43,056,000 after acquiring an additional 36,597 shares in the last quarter. Private Advisor Group LLC acquired a new position in shares of CDK Global during the 2nd quarter valued at $366,000. AMP Capital Investors Ltd lifted its holdings in shares of CDK Global by 3.8% during the 2nd quarter. AMP Capital Investors Ltd now owns 90,658 shares of the software maker’s stock valued at $4,395,000 after acquiring an additional 3,331 shares in the last quarter. Holocene Advisors LP lifted its holdings in shares of CDK Global by 105.9% during the 2nd quarter. Holocene Advisors LP now owns 49,518 shares of the software maker’s stock valued at $2,448,000 after acquiring an additional 25,466 shares in the last quarter. Finally, AIMZ Investment Advisors LLC lifted its holdings in shares of CDK Global by 12.7% during the 2nd quarter. AIMZ Investment Advisors LLC now owns 63,079 shares of the software maker’s stock valued at $3,119,000 after acquiring an additional 7,124 shares in the last quarter. Hedge funds and other institutional investors own 82.05% of the company’s stock.

A number of analysts recently issued reports on the stock. ValuEngine upgraded shares of CDK Global from a “sell” rating to a “hold” rating in a research report on Thursday, August 1st. Barrington Research restated a “buy” rating on shares of CDK Global in a research report on Monday, April 29th. Zacks Investment Research lowered shares of CDK Global from a “buy” rating to a “hold” rating in a research report on Monday, May 6th. Finally, BidaskClub lowered shares of CDK Global from a “buy” rating to a “hold” rating in a research report on Tuesday, August 6th. Five equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $67.75.

CDK Global Company Profile

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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