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How to buy CDK Global stock | 44.79

Own CDK Global stock in just a few minutes.

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CDK Global, Inc is a software—application business based in the US. CDK Global shares (CDK) are listed on the NASDAQ and all prices are listed in US Dollars. CDK Global employs 9,000 staff and has a trailing 12-month revenue of around USD$2 billion.

How to buy shares in CDK Global

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for CDK Global. Find the stock by name or ticker symbol: CDK. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until CDK Global reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$44.79, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of CDK Global, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of CDK Global. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted CDK Global's share price?

Since the stock market crash in March caused by coronavirus, CDK Global's share price has had significant negative movement.

Its last market close was USD$44.79, which is 10.44% down on its pre-crash value of USD$50.01 and 53.81% up on the lowest point reached during the March crash when the shares fell as low as USD$29.12.

If you had bought USD$1,000 worth of CDK Global shares at the start of February 2020, those shares would have been worth USD$562.61 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$823.24.

CDK Global share price

Use our graph to track the performance of CDK stocks over time.

CDK Global shares at a glance

Information last updated 2020-10-20.
Latest market closeUSD$44.79
52-week rangeUSD$29.12 - USD$56.99
50-day moving average USD$44.2526
200-day moving average USD$41.9058
Wall St. target priceUSD$56.6
PE ratio 18.6379
Dividend yield USD$0.6 (1.34%)
Earnings per share (TTM) USD$1.699

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy CDK Global stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

CDK Global price performance over time

Historical closes compared with the close of $44.79 from 2020-10-19

1 week (2020-10-22) -3.28%
1 month (2020-09-29) 2.75%
3 months (2020-07-29) -1.21%
6 months (2020-04-29) 14.76%
1 year (2019-10-29) -10.46%
2 years (2018-10-29) -20.73%
3 years (2017-10-27) -33.20%
5 years (2015-10-29) -9.31%

Is CDK Global under- or over-valued?

Valuing CDK Global stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of CDK Global's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

CDK Global's P/E ratio

CDK Global's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 19x. In other words, CDK Global shares trade at around 19x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

CDK Global's PEG ratio

CDK Global's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.2. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into CDK Global's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

CDK Global's EBITDA

CDK Global's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$671.1 million.

The EBITDA is a measure of a CDK Global's overall financial performance and is widely used to measure a its profitability.

CDK Global financials

Revenue TTM USD$2 billion
Operating margin TTM 29.16%
Gross profit TTM USD$998.7 million
Return on assets TTM 12.21%
Return on equity TTM 0%
Profit margin 10.59%
Book value $-6.025
Market capitalisation USD$5.4 billion

TTM: trailing 12 months

Shorting CDK Global shares

There are currently 1.9 million CDK Global shares held short by investors – that's known as CDK Global's "short interest". This figure is 4.4% down from 2.0 million last month.

There are a few different ways that this level of interest in shorting CDK Global shares can be evaluated.

CDK Global's "short interest ratio" (SIR)

CDK Global's "short interest ratio" (SIR) is the quantity of CDK Global shares currently shorted divided by the average quantity of CDK Global shares traded daily (recently around 824668.26086957). CDK Global's SIR currently stands at 2.3. In other words for every 100,000 CDK Global shares traded daily on the market, roughly 2300 shares are currently held short.

However CDK Global's short interest can also be evaluated against the total number of CDK Global shares, or, against the total number of tradable CDK Global shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case CDK Global's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 CDK Global shares in existence, roughly 20 shares are currently held short) or 0.0204% of the tradable shares (for every 100,000 tradable CDK Global shares, roughly 20 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against CDK Global.

Find out more about how you can short CDK Global stock.

CDK Global's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like CDK Global.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

CDK Global's total ESG risk score

Total ESG risk: 18.17

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and CDK Global's overall score of 18.17 (as at 10/01/2020) is pretty good – landing it in it in the 21st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like CDK Global is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

CDK Global's environmental score

Environmental score: 0.85/100

CDK Global's environmental score of 0.85 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that CDK Global is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

CDK Global's social score

Social score: 11.17/100

CDK Global's social score of 11.17 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that CDK Global is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

CDK Global's governance score

Governance score: 4.66/100

CDK Global's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that CDK Global is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

CDK Global's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. CDK Global scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that CDK Global has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

CDK Global, Inc was last rated for ESG on: 2020-10-01.

Total ESG score 18.17
Total ESG percentile 20.58
Environmental score 0.85
Environmental score percentile 2
Social score 11.17
Social score percentile 2
Governance score 4.66
Governance score percentile 2
Level of controversy 2

CDK Global share dividends

19%

Dividend payout ratio: 18.87% of net profits

Recently CDK Global has paid out, on average, around 18.87% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.34% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), CDK Global shareholders could enjoy a 1.34% return on their shares, in the form of dividend payments. In CDK Global's case, that would currently equate to about $0.6 per share.

While CDK Global's payout ratio might seem low, this can signify that CDK Global is investing more in its future growth.

CDK Global's most recent dividend payout was on 30 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 31 August 2020 (the "ex-dividend date").

CDK Global share price volatility

Over the last 12 months, CDK Global's shares have ranged in value from as little as $29.12 up to $56.99. A popular way to gauge a stock's volatility is its "beta".

CDK.US volatility(beta: 1.36)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while CDK Global's is 1.3602. This would suggest that CDK Global's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

CDK Global overview

CDK Global, Inc., together with its subsidiaries, provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 30,000 retail locations and OEMs. CDK Global, Inc. was founded in 2014 and is headquartered in Hoffman Estates, Illinois.

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