CDK Global stock: buy or sell?

CDK stock price: $43.70 -2.13% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

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CDK Global ended today at $43.70 and dropped a fateful -2.13%. On August/14 CDK plummed a frightening -8.83%.

CDK Global, Inc. provides integrated information technology and digital marketing solutions to the automotive retail and other industries worldwide.

Should I buy CDK Global stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with CDK Global stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CDK will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is CDK Global stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we found 1 rating published for CDK stock in the last month.

Is CDK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-19Barrington Researchn/aBuy

CDK Global stock analysis

Daily outlook

Shares of CDK Global closed today at $43.70 and dropped a fateful -2.13%.

CDK Global ended today at $43.70 and dropped a fateful -2.13%. Since price and SMA200d lines crossed down on Jul/30, CDK fell $-9.39 per share (-17.69%). CDK marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $49.85 would break this short term down trend and open possibilities for reversing this situation.

CDK stock chart (daily)

Weekly outlook

After sliding a spooky -8.23% in a week last week, CDK Global closed this week at $43.70 and dropped a tragic -2.80%. With this, it's been 4 sliding weeks in a row, loosing $-10.02 (-19.49%).

Since price and 40-weeks moving average lines crossed down late July, CDK fell $-10.02 per share (-18.65%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.

CDK stock chart (weekly)

CDK Global stock price history

CDK Global stock went public on September 22nd, 2014 with a price of $28.901. Since then, CDK stock surged a 51.20%, with a yearly average of 12.80%. If you had invested right after CDK's IPO a $1,000 in CDK Global stock in 2014, it would worth $512.00 today.

1: Adjusted price after possible price splits or reverse-splits.

CDK Global stock historical price chart

CDK stock reached 52-week highs on September at $64.21, and all-time highs 2018-01-16 with a price of 74.87.

CDK Global stock price target is $65.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' CDK stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we only found 1 price target for CDK Global stock:
CDK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-19Barrington ResearchReiteratesn/a$65.00-
(in average)$0.00$65.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

CDK Global presented nice results for 2018-Q4 on February. CDK Global escalated Earnings per Share (EPS) by 11.60%, beating analysts consensus of $0.86. CDK Global posted $0.96.
CDK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.68n/a
2017-Q32017-10-310.670.681.5%
2017-Q42018-01-300.70.8724.3%
2018-Q12018-04-260.840.851.2%
2018-Q22018-08-140.80.80.0%
2018-Q32018-11-070.840.884.8%
2018-Q42019-02-050.860.9611.6%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a slightly fine increase of 2.39% to $2,273.20 million dollars. Similarly, its earnings margin (compared to revenues) stepped up to 16.75%, that is $380.80 million.

CDK Global presents anual results in June, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, CDK Global TTM sales up to December 2018 were $2,290.70 and earnings $374.80 M USD. If we compare this TTM figures with the last reported annuality, we can esteem CDK Global business evolution since June 2018: Annual revenues up to December, compared to lastest yearly report, remained constant a tiny 0.77%. Regarding profit margin, CDK Global stayed steady -0.39% to 16.75%

CDK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,840 M-$199 M10.8%-
2014$1,970 M7.07%$227 M11.5%13.79%
2015$2,064 M4.75%$178 M8.6%-21.38%
2016$2,115 M2.48%$239 M11.3%34.14%
2017$2,220 M4.99%$296 M13.3%23.53%
2018$2,273 M2.39%$381 M16.8%28.82%
TTM $2,291 M0.77%$375 M16.4%-1.58%

Quarterly financial results

CDK Global posted $590.40 M in revenues for 2018-Q4, a 6.47% improvement compared to previous quarter. Reported quarter earnings marked $89.00 million with a profit margin of 15.07%. Profit margin declined a -1.21% compared to previous quarter when profit margin was 16.28%. When comparing turnover to same quarter last year, CDK Global sales marked a good gain and jumped a 5.11%.
CDK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$565 M-$59 M10.4%-
2017-Q3$566 M0.05%$81 M14.4%38.50%
2017-Q4$562 M-0.71%$104 M18.5%27.92%
2018-Q1$577 M2.65%$96 M16.7%-7.60%
2018-Q2$569 M-1.28%$99 M17.5%3.43%
2018-Q3$555 M-2.58%$90 M16.3%-9.15%
2018-Q4$590 M6.47%$89 M15.1%-1.44%
2019-Q1$602 M1.98%$100 M16.6%12.13%

CDK Global ownership

When you are planning to invest in shares of a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For CDK Global, 0.44% of all outstanding shares are owned by its staff.

Bearish positions for CDK stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to CDK Global:

CDKMDSOTRU
Market cap$5.3 B$5.7 B$15.7 B
Total shares121.6 M62.3 M187.3 M
Float shares121.1 M57.9 M186.9 M
  - Institutional holdings (%)83.5%106.9%102.1%
  - Insider holdings (%)0.4%3.8%0.4%
Shares in short selling0.0%0.0%0.0%

CDK Global summary

Thursday, August 22nd, 2019
Open$44.89
Close$43.70
Day range$43.59 - $45.13
Previous close$44.65
Session gain-2.13%
Average true range$1.79
50d mov avg$49.20
100d mov avg$51.84
200d mov avg$52.06
Daily patternlb06a
Weekly pattern lb06a

CDK Global performance

To better understand CDK Global performance you must becnhmark its gains with other related stocks in same sector or industry. For CDK Global, the comparison is made against Medidata Solutions and .
Stock3m6m12m
CDKCDK Global-12.70%-24.46%-27.84%
MDSOMedidata Solution...-0.22%21.24%12.04%
TRU28.46%32.48%13.72%

CDK Global competitors

Defining a list of competitors for CDK Global it's tough. We selected 2 public companies that are related to and can be considered as competitors of CDK Global: