Morgan Stanley slashes price target on CDK Global Inc. [CDK] – find out why.


CDK Global Inc. [NASDAQ: CDK] jumped around 0.01 points on Tuesday, while shares priced at $54.45 at the close of the session, up 0.02%. The company report on April 12, 2022 that Numa Partners with CDK Global.

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Numa’s Customer Response Platform amplified with CDK DMS.

Numa – the AI-driven customer response platform for dealership fixed operations departments that rescues missed calls and appointments – today announced it has become a participant in the CDK Global Partner Program. As a member of one of the largest third-party partner programs in the industry, Numa is now part of a marketplace of applications and integrations that CDK Global, Inc. (Nasdaq: CDK), a leading automotive retail technology company, developed to help automotive dealers succeed.

CDK Global Inc. stock is now 30.45% up from its year-to-date (YTD) trading value. CDK Stock saw the intraday high of $54.48 and lowest of $54.43 per share. The company’s 52-week high price is 55.15, which means current price is +34.38% above from all time high which was touched on 04/08/22.

Compared to the average trading volume of 1.39M shares, CDK reached a trading volume of 5260623 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about CDK Global Inc. [CDK]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CDK shares is $61.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CDK stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for CDK Global Inc. shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on December 16, 2021. The new note on the price target was released on June 08, 2020, representing the official price target for CDK Global Inc. stock. Previously, the target price had yet another raise to $65, while Wells Fargo analysts kept a Overweight rating on CDK stock.

The Average True Range (ATR) for CDK Global Inc. is set at 0.95, with the Price to Sales ratio for CDK stock in the period of the last 12 months amounting to 3.68. The Price to Book ratio for the last quarter was 16.01, with the Price to Cash per share for the same quarter was set at 0.93. Price to Free Cash Flow for CDK in the course of the last twelve months was 24.05 with Quick ratio for the last quarter at 1.40.

How has CDK stock performed recently?

CDK Global Inc. [CDK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.09. With this latest performance, CDK shares gained by 14.66% in over the last four-week period, additionally plugging by 26.45% over the last 6 months – not to mention a drop of -0.62% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CDK stock in for the last two-week period is set at 76.20, with the RSI for the last a single of trading hit 80.89, and the three-weeks RSI is set at 72.67 for CDK Global Inc. [CDK]. The present Moving Average for the last 50 days of trading for this stock 47.58, while it was recorded at 54.45 for the last single week of trading, and 44.37 for the last 200 days.

CDK Global Inc. [CDK]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and CDK Global Inc. [CDK] shares currently have an operating margin of +26.14 and a Gross Margin at +52.44. CDK Global Inc.’s Net Margin is presently recorded at +10.85.

Return on Total Capital for CDK is now 20.39, given the latest momentum, and Return on Invested Capital for the company is 8.62. When it comes to the capital structure of this company, CDK Global Inc. [CDK] has a Total Debt to Total Equity ratio set at 340.70. Additionally, CDK Total Debt to Total Capital is recorded at 77.31, with Total Debt to Total Assets ending up at 60.39. Long-Term Debt to Equity for the company is recorded at 336.44, with the Long-Term Debt to Total Capital now at 76.34.

Reflecting on the efficiency of the workforce at the company, CDK Global Inc. [CDK] managed to generate an average of $27,923 per employee. Receivables Turnover for the company is 4.98 with a Total Asset Turnover recorded at a value of 0.60.CDK Global Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 1.40.

Earnings analysis for CDK Global Inc. [CDK]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CDK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for CDK Global Inc. go to 10.00%.

Insider trade positions for CDK Global Inc. [CDK]

There are presently around $5,913 million, or 94.70% of CDK stock, in the hands of institutional investors. The top three institutional holders of CDK stocks are: BLACKROCK INC. with ownership of 21,272,636, which is approximately 14.142% of the company’s market cap and around 0.30% of the total institutional ownership; VANGUARD GROUP INC, holding 10,751,360 shares of the stock with an approximate value of $585.3 million in CDK stocks shares; and HARRIS ASSOCIATES L P, currently with $349.8 million in CDK stock with ownership of nearly 10.519% of the company’s market capitalization.

Positions in CDK Global Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 202 institutional holders increased their position in CDK Global Inc. [NASDAQ:CDK] by around 11,741,785 shares. Additionally, 177 investors decreased positions by around 10,644,807 shares, while 123 investors held positions by with 86,222,913 shares. The mentioned changes placed institutional holdings at 108,609,505 shares, according to the latest SEC report filing. CDK stock had 77 new institutional investments in for a total of 2,874,753 shares, while 44 institutional investors sold positions of 6,196,179 shares during the same period.