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

CDK Global, Inc. (NASDAQ:CDK – Get Rating) was the recipient of a significant growth in short interest in April. As of April 30th, there was short interest totalling 6,320,000 shares, a growth of 91.5% from the April 15th total of 3,300,000 shares. Based on an average daily trading volume, of 1,930,000 shares, the short-interest ratio is currently 3.3 days. Currently, 5.5% of the shares of the stock are short sold.

CDK Global stock traded up $0.09 during midday trading on Friday, hitting $53.66. 3,348,431 shares of the stock were exchanged, compared to its average volume of 2,988,492. CDK Global has a 52-week low of $38.53 and a 52-week high of $54.70. The stock has a market capitalization of $6.26 billion, a price-to-earnings ratio of 25.67 and a beta of 1.02. The business’s 50-day moving average price is $51.38 and its 200-day moving average price is $45.47. The company has a quick ratio of 1.38, a current ratio of 1.25 and a debt-to-equity ratio of 3.98.

CDK Global (NASDAQ:CDK – Get Rating) last released its earnings results on Thursday, May 5th. The software maker reported $0.78 earnings per share for the quarter, beating analysts’ consensus estimates of $0.75 by $0.03. The firm had revenue of $459.70 million for the quarter, compared to analysts’ expectations of $457.88 million. CDK Global had a net margin of 14.28% and a return on equity of 67.84%. The company’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.69 earnings per share. On average, sell-side analysts predict that CDK Global will post 2.52 earnings per share for the current fiscal year.

Several hedge funds have recently made changes to their positions in the stock. PEAK6 Investments LLC lifted its stake in shares of CDK Global by 484.5% during the 1st quarter. PEAK6 Investments LLC now owns 38,421 shares of the software maker’s stock valued at $1,870,000 after buying an additional 48,414 shares in the last quarter. Northern Trust Corp lifted its stake in shares of CDK Global by 23.8% during the 1st quarter. Northern Trust Corp now owns 2,545,270 shares of the software maker’s stock valued at $123,904,000 after buying an additional 489,425 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in shares of CDK Global by 3.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 997,849 shares of the software maker’s stock valued at $48,576,000 after buying an additional 31,468 shares in the last quarter. Mariner LLC increased its holdings in CDK Global by 22.1% during the 1st quarter. Mariner LLC now owns 14,499 shares of the software maker’s stock worth $705,000 after acquiring an additional 2,626 shares during the period. Finally, First Trust Advisors LP increased its holdings in CDK Global by 85.5% during the 1st quarter. First Trust Advisors LP now owns 401,788 shares of the software maker’s stock worth $19,559,000 after acquiring an additional 185,218 shares during the period. Institutional investors own 92.85% of the company’s stock.

A number of equities analysts recently weighed in on CDK shares. StockNews.com assumed coverage on shares of CDK Global in a research note on Thursday, March 31st. They set a “hold” rating for the company. Barrington Research downgraded shares of CDK Global from an “outperform” rating to an “underperform” rating in a research report on Thursday, April 7th. Zacks Investment Research raised shares of CDK Global from a “hold” rating to a “buy” rating and set a $61.00 target price for the company in a research report on Wednesday, April 13th. Finally, TheStreet raised shares of CDK Global from a “c” rating to a “b-” rating in a research report on Thursday, March 3rd. One investment analyst has rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $54.50.

CDK Global Company Profile (Get Rating)

CDK Global, Inc, together with its subsidiaries, provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries in the United States and internationally. It offers subscription-based software and technology solutions to automotive retailers, as well as to retailers and manufacturers of heavy trucks, construction and agricultural equipment, motorcycles, boats, and other marine and recreational vehicles.

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