Ceridian HCM Holding Inc. (NYSE: CDAY): The Best-Of-Breed For Investing?


Capital Research & Management Co.. recently announced the acquisition of new stake in Ceridian HCM Holding Inc. (NYSE:CDAY). The institutional investor has increased its shareholding in the Technology company by 0.17% to 17.7 million shares with purchase of 30488.0 shares. This fresh investment now brings its stake to 12.05% valued currently at $1.39 billion. In addition, The Vanguard Group, Inc. raised its holdings by 1.08 million to 10.68 million shares. And BlackRock Fund Advisors has lifted its position by 5.05% or 0.42 million shares – to 8.75 million shares.

With over 1.31 million Ceridian HCM Holding Inc. (CDAY) shares trading Tuesday and a closing price of $83.68 on the day, the dollar volume was approximately $109.6 million. The shares have shown a positive weekly performance of 11.54% and its price on 09/01/20 gained nearly 5.23%. Currently, there are 145.59M common shares owned by the public and among those 138.82M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 16 analysts who have offered their price forecasts for CDAY have a consensus price objective of $82.13. The analysts have set the share’s price value over the next 12 months at a high of $105.00 and a low of $52.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Ceridian HCM Holding Inc. stock is 2.50 for the next 12 months. The average price target is 0.72% above its last price level and an upside to the estimated low will see the stock lose -60.92% over that period. But an upside of 20.3% will see the stock hit the forecast high price target while mean target price for the stock is $83.00.

Insiders at the company have transacted a total of 73 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 38 of these insider trades were purchases, accounting for 1,434,744 shares. Insider sales of the common stock occurred on 35 occasions, with total insider shares sold totaling 76,342,777 shares.

The top 3 mutual fund holders in Ceridian HCM Holding Inc. are American Funds AMCAP Fund, T Rowe Price New Horizons Fund, and American Funds New Economy Fund. American Funds AMCAP Fund owns 6.28 million shares of the company’s stock, all valued at over $491.96 million. The company bought an additional 19336.0 shares recently to bring their total holdings to about 4.28% of the shares outstanding. T Rowe Price New Horizons Fund bought 17033.0 shares to see its total holdings expand to 6.14 million shares valued at over $480.38 million and representing 4.18% of the shares outstanding. American Funds New Economy Fund bought 0.2 million shares to bring its total holdings to over 6.06 million shares at a value of $474.45 million. American Funds New Economy Fund now owns shares totaling to 4.13% of the shares outstanding.

Shares of Ceridian HCM Holding Inc. (NYSE: CDAY) opened at $79.57, up $0.05 from a prior closing price of $79.52. However, the script later closed the day at $83.68, up 5.23%. The company’s stock has a 5-day price change of 11.54% and 10.82% over the past three months. CDAY shares are trading 23.28% year to date (YTD), with the 12-month market performance up to 49.16% higher. It has a 12-month low price of $38.40 and touched a high of $87.00 over the same period. Currently, 1.31 million shares have been traded, compared to an average intraday trading volume of 1.60 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 11.49%, 6.50%, and 23.87% respectively.

Institutional ownership of Ceridian HCM Holding Inc. (NYSE: CDAY) shares accounts for 89.51% of the company’s 145.59M shares outstanding. Mutual fund holders own 34.42%, while other institutional holders and individual stakeholders account for 54.30% and 11.68% respectively.

It has a market capitalization of $12.01B. The stock’s trailing 12-month PE ratio is 166.36, while the earnings-per-share (ttm) stands at $0.50. The company has a PEG of 8.78 and a Quick Ratio of 1.20 with the debt-to-equity ratio at 0.49. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.07% over the week and 4.19% over the month.

Analysts forecast that Ceridian HCM Holding Inc. (CDAY) will achieve an EPS of $0.05 for the current quarter, $0.08 for the next quarter and $0.55 for 2021. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.08. Comparatively, EPS for the current quarter was $0.11 a year ago. Earnings per share for the fiscal year are expected to increase by 242.00%, and 34.15% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 16 brokerage firm advisors rate Ceridian HCM Holding Inc. (CDAY) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 7 of the 16 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the CDAY, a number of firms have released research notes about the stock. CIBC stated their Neutral rating for the stock in a research note on August 06, 2020, with the firm’s price target at $83. Piper Sandler coverage for the Ceridian HCM Holding Inc. (CDAY) stock in a research note released on May 22, 2020 offered a Neutral rating with a price target of $69. JP Morgan was of a view on April 23, 2020 that the stock is Underweight, while Credit Suisse gave the stock Underperform rating on April 23, 2020, issuing a price target of $63- $47. Jefferies on their part issued Hold rating on April 16, 2020.


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