Analyst Ratings for CDK Global Inc. (CDK)

Updated: 2017-07-27

Shares of CDK Global Inc. (NASDAQ:CDK) have received a consensus rating of Overweight from Wall Street analysts. CDK had previously received a consensus rating of Overweight a month ago.

Of the 6 analysts covering the stock, 4 gave it a buy rating, 0 issued an overweight rating, 2 issued a hold rating, 0 issued an underweight rating, and 0 gave a sell rating. Compared to three months ago, there has been an increase of 2 in the number of analysts with a positive outlook on the stock. Meanwhile, the number of analysts pessimistic about the company has increased by 0.

Many analysts weighed in on price targets for CDK. The most optimistic price target was 75, implying potential capital gains of 13.31 percent. The most pessimistic price target was 70, implying potential capital losses of 5.76 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

Analysts have revised their earnings estimates upwards for this quarter, by about 0 percent on average, compared to last month. That number becomes -5.26 percent if we expand the time horizon to include the past 3 months instead of just one. Over the past 30 days, FY earnings estimates have also changed upwards by 0 percent. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 2.32 percent.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 0 analysts made positive revisions to their quarterly estimates over the past month, while 0 analysts revised their estimates downwards. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, while 0 analysts made negative revisions to their fiscal year's estimates.

CDK has an estimated earnings growth rate of 48.37 percent as forecasted by analysts. The PEG ratio of a stock is another value frequently studied by investors. A lower PEG ratio is favorable, because people typically see that as an indicator of higher growth relative to stock price. People often look for the PEG ratio to be under 1, though it could be better to see where the ratio stands relative to peers in the industry. The PEG ratio of CDK is 0.7.

CDK has traded between a high of 67.49 and a low of 53.46 over the past year. Today's price is 23.81 percent above the 52-week low, and 1.93 percent below the high. CDK has a P/E ratio of 33.77. Investors typically compare the P/E ratio to a company's peers in the industry. The CDK value stock report compares CDK to some of its peers using value stock charts. The market cap of CDK is $9.61 billion. CDK is estimated to release their earnings results for the quarter on 0000-00-00, days from today.