NEW YORK (TheStreet) -- Shares of DealerTrack Technologies Inc (TRAK) were declining by 0.07% to $62.94 in late morning trading Tuesday, after analysts at two firms, Craig-Hallum and JPMorgan Chase, downgraded the web-based software solutions and services provider this morning.
Yesterday, DealeTtrack agreed to be acquired by privately held Cox Automotive for $4 billion at $63.25 per share. The deal is expected to close in the third quarter of this year.
Analysts at Craig-Hallum downgraded DealerTrack to "hold" from "buy" following the takeover deal by Cox Automotive.
Similarly, analysts at JPMorgan downgraded DealerTrack to "neutral" from "overweight" this morning, saying an alternative bid is unlikely to emerge.
JPMorgan raised its price target for the stock to $63.25 from $56.
Cox Automotive owns automotive research company Kelley Blue Book, and is the largest wholesale vehicle auction company in the U.S.
Cox Automotive is a unit of Cox Enterprises and employs approximately 24,000 people worldwide.
New Hyde Park, N.Y.-based Dealertrack provides web-based software solutions and services for segments of the automotive retail industry including dealers, lenders, original equipment manufacturers, third-party retailers, aftermarket providers and other service providers.
Dealertrack operates the online credit application networks and has about 4,000 employees.
Separately, TheStreet Ratings team rates DEALERTRACK TECHNOLOGIES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEALERTRACK TECHNOLOGIES INC (TRAK) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."