CDW Co. (NASDAQ:CDW) Sees Large Increase in Short Interest

CDW Co. (NASDAQ:CDW - Get Free Report) was the recipient of a significant increase in short interest during the month of May. As of May 15th, there was short interest totalling 3,950,000 shares, an increase of 32.6% from the April 30th total of 2,980,000 shares. Approximately 3.0% of the shares of the stock are short sold. Based on an average daily trading volume, of 1,500,000 shares, the days-to-cover ratio is presently 2.6 days.

Insider Buying and Selling at CDW

In related news, insider Christine A. Leahy sold 40,917 shares of the business's stock in a transaction on Thursday, May 8th. The stock was sold at an average price of $181.42, for a total value of $7,423,162.14. Following the sale, the insider now owns 144,931 shares of the company's stock, valued at $26,293,382.02. The trade was a 22.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Frederick J. Kulevich sold 28,159 shares of the firm's stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $190.90, for a total value of $5,375,553.10. Following the sale, the insider now directly owns 36,077 shares of the company's stock, valued at $6,887,099.30. This represents a 43.84% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On CDW

Large investors have recently made changes to their positions in the stock. Blue Trust Inc. grew its holdings in CDW by 35.8% during the 4th quarter. Blue Trust Inc. now owns 1,859 shares of the information technology services provider's stock valued at $324,000 after buying an additional 490 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its stake in CDW by 9.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 18,471 shares of the information technology services provider's stock valued at $3,215,000 after acquiring an additional 1,629 shares during the last quarter. Mediolanum International Funds Ltd increased its position in shares of CDW by 53.4% during the 4th quarter. Mediolanum International Funds Ltd now owns 31,336 shares of the information technology services provider's stock valued at $5,419,000 after purchasing an additional 10,902 shares during the last quarter. Waldron Private Wealth LLC raised its holdings in shares of CDW by 103.0% during the 4th quarter. Waldron Private Wealth LLC now owns 3,366 shares of the information technology services provider's stock valued at $586,000 after buying an additional 1,708 shares in the last quarter. Finally, China Universal Asset Management Co. Ltd. lifted its position in CDW by 28.0% in the 4th quarter. China Universal Asset Management Co. Ltd. now owns 2,169 shares of the information technology services provider's stock worth $377,000 after buying an additional 475 shares during the last quarter. 93.15% of the stock is owned by institutional investors.

CDW Stock Up 2.6%

Shares of NASDAQ:CDW traded up $4.59 during midday trading on Tuesday, hitting $179.35. 819,461 shares of the company's stock were exchanged, compared to its average volume of 1,221,796. The company has a market cap of $23.62 billion, a PE ratio of 22.50, a price-to-earnings-growth ratio of 3.21 and a beta of 0.91. The company has a debt-to-equity ratio of 2.38, a current ratio of 1.35 and a quick ratio of 1.24. CDW has a 12 month low of $137.31 and a 12 month high of $241.26. The stock has a 50 day moving average price of $166.39 and a 200-day moving average price of $175.78.

CDW (NASDAQ:CDW - Get Free Report) last posted its earnings results on Wednesday, May 7th. The information technology services provider reported $2.15 EPS for the quarter, topping the consensus estimate of $1.96 by $0.19. The firm had revenue of $5.20 billion for the quarter, compared to analysts' expectations of $4.93 billion. CDW had a net margin of 5.13% and a return on equity of 55.42%. The company's quarterly revenue was up 6.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.92 EPS. On average, sell-side analysts anticipate that CDW will post 9.41 EPS for the current fiscal year.

CDW announced that its board has initiated a stock repurchase program on Wednesday, February 5th that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the information technology services provider to reacquire up to 2.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

CDW Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 10th. Investors of record on Monday, May 26th will be issued a $0.625 dividend. This represents a $2.50 annualized dividend and a yield of 1.39%. The ex-dividend date of this dividend is Friday, May 23rd. CDW's dividend payout ratio (DPR) is presently 30.98%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on CDW. JPMorgan Chase & Co. lowered their target price on CDW from $222.00 to $175.00 and set a "neutral" rating for the company in a report on Thursday, April 17th. Morgan Stanley lifted their price objective on shares of CDW from $193.00 to $201.00 and gave the stock an "equal weight" rating in a research note on Thursday, February 6th. Barclays decreased their price target on CDW from $223.00 to $205.00 and set an "equal weight" rating on the stock in a research report on Thursday, May 8th. UBS Group cut their target price on CDW from $236.00 to $210.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Finally, Citigroup upped their price objective on shares of CDW from $160.00 to $180.00 and gave the stock a "neutral" rating in a research report on Thursday, May 8th. Four equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $216.38.

About CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.