Investors Purchase Large Volume of Call Options on CDK Global (CDK)

CDK Global Inc (NASDAQ:CDK) was the recipient of some unusual options trading activity on Wednesday. Investors acquired 6,314 call options on the company. This is an increase of 1,010% compared to the typical volume of 569 call options.

CDK Global (CDK) opened at $73.38 on Friday. The stock has a market cap of $10,090.00, a PE ratio of 35.62, a P/E/G ratio of 1.65 and a beta of 0.78. CDK Global has a 1-year low of $59.33 and a 1-year high of $76.04. The company has a current ratio of 2.37, a quick ratio of 2.37 and a debt-to-equity ratio of 297.80.

CDK Global (NASDAQ:CDK) last posted its quarterly earnings results on Tuesday, October 31st. The software maker reported $0.68 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.68. The firm had revenue of $565.70 million during the quarter, compared to analysts’ expectations of $569.28 million. CDK Global had a net margin of 13.42% and a return on equity of 515.77%. The firm’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.60 earnings per share. analysts predict that CDK Global will post 2.97 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 29th. Investors of record on Thursday, March 1st will be issued a dividend of $0.15 per share. The ex-dividend date of this dividend is Wednesday, February 28th. This represents a $0.60 annualized dividend and a yield of 0.82%. CDK Global’s dividend payout ratio is currently 29.13%.

CDK has been the subject of a number of research reports. Zacks Investment Research cut shares of CDK Global from a “buy” rating to a “hold” rating in a report on Friday, November 3rd. BidaskClub raised shares of CDK Global from a “hold” rating to a “buy” rating in a report on Wednesday, October 11th. TheStreet raised shares of CDK Global from a “c+” rating to a “b-” rating in a report on Thursday, October 19th. Finally, Barrington Research set a $75.00 target price on shares of CDK Global and gave the company a “buy” rating in a report on Tuesday, October 31st. Four research analysts have rated the stock with a hold rating and two have given a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $72.60.

In other news, VP Jennifer A. Williams sold 1,984 shares of the company’s stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $62.58, for a total value of $124,158.72. Following the completion of the sale, the vice president now directly owns 5,560 shares of the company’s stock, valued at $347,944.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.39% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Macquarie Group Ltd. purchased a new position in CDK Global during the third quarter worth about $145,000. D.A. Davidson & CO. raised its holdings in CDK Global by 5.6% during the second quarter. D.A. Davidson & CO. now owns 3,130 shares of the software maker’s stock worth $194,000 after purchasing an additional 167 shares in the last quarter. IFM Investors Pty Ltd purchased a new position in CDK Global during the third quarter worth about $275,000. Boothbay Fund Management LLC purchased a new position in CDK Global during the third quarter worth about $321,000. Finally, BB&T Securities LLC raised its holdings in CDK Global by 46.5% during the third quarter. BB&T Securities LLC now owns 5,398 shares of the software maker’s stock worth $340,000 after purchasing an additional 1,714 shares in the last quarter. 87.52% of the stock is owned by hedge funds and other institutional investors.

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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.

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