Is CDK Global Inc (CDK) A Good Stock To Buy?

Since CDK Global Inc (NASDAQ:CDK) has witnessed declining sentiment from the smart money, it’s safe to say that there was a specific group of fund managers that elected to cut their positions entirely in the third quarter. Intriguingly, David Fear’s Thunderbird Partners said goodbye to the largest position of the 700 funds monitored by Insider Monkey, worth close to $28.1 million in stock. Andrew Immerman and Jeremy Schiffman’s fund, Palestra Capital Management, also dropped its stock, about $26.8 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as CDK Global Inc (NASDAQ:CDK) but similarly valued. These stocks are Mosaic Co (NYSE:MOS), Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH), Amdocs Limited (NYSE:DOX), and Cencosud SA (NYSE:CNCO). This group of stocks’ market valuations resemble CDK’s market valuation.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $285 million. That figure was $2.75 billion in CDK’s case. Mosaic Co (NYSE:MOS) is the most popular stock in this table. On the other hand Cencosud SA (NYSE:CNCO) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks CDK Global Inc (NASDAQ:CDK) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None