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 analyst gave a price target of 75, implying a possible profit of 13.31 percent. The most pessimistic price target was 70, implying potential capital losses of 5.76 percent. Note that investment analysts can be biased in their reporting on companies's ratings and price targets.

In the last 30 days, analysts have changed their quarterly earnings estimates upwards by an average of 0 percent. That number becomes -5.26 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised upwards by 0 percent, as compared to a month ago. 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. Over the same time period, 0 analysts revised their FY earnings estimates upwards, while 0 analysts decreased their 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. Investors like to see smaller values for the PEG ratio, 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, although it is frequently more appropriate to compare PEG ratios to the company's peers. CDK has a PEG ratio of 0.7.

CDK has a 52-week high of 67.49 and a 52-week low of 53.46. Today's price is 23.81 percent above the 52-week low, and below the high by 1.93 percent. 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's next earnings release will be on 0000-00-00, which is days away.