CDW (NASDAQ:CDW) Shares Down 3.6% - Here's Why

Key Points

• CDW Corporation's share price fell 3.6%, trading at $164.65, with a significant decrease in volume, down 59% from the average daily trading volume.
• Barclays and UBS Group have recently reduced their price targets for CDW, while JPMorgan and Citigroup have raised theirs, reflecting mixed analyst sentiments with an average rating of "Hold".
• CDW reported $2.60 EPS for the last quarter, exceeding estimates, and announced a quarterly dividend of $0.625, yielding 1.5% annually.

Shares of CDW Corporation (NASDAQ:CDW - Get Free Report) were down 3.6% on Thursday . The company traded as low as $165.41 and last traded at $164.65. Approximately 532,045 shares changed hands during trading, a decline of 59% from the average daily volume of 1,312,732 shares. The stock had previously closed at $170.77.

Analyst Upgrades and Downgrades

A number of research analysts have commented on CDW shares. Barclays lowered their target price on CDW from $205.00 to $176.00 and set an "equal weight" rating on the stock in a research note on Thursday, August 7th. Citigroup upped their price target on CDW from $180.00 to $200.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. UBS Group decreased their price target on CDW from $210.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday, August 7th. Finally, JPMorgan Chase & Co. boosted their price objective on CDW from $185.00 to $205.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, CDW has an average rating of "Hold" and a consensus target price of $202.00.

CDW Stock Performance

The company has a market capitalization of $21.78 billion, a P/E ratio of 20.64, a price-to-earnings-growth ratio of 2.73 and a beta of 0.98. The firm has a 50 day moving average price of $170.57 and a two-hundred day moving average price of $169.91. The company has a debt-to-equity ratio of 2.28, a quick ratio of 1.22 and a current ratio of 1.35.

CDW (NASDAQ:CDW - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The information technology services provider reported $2.60 earnings per share for the quarter, beating the consensus estimate of $2.49 by $0.11. CDW had a return on equity of 53.63% and a net margin of 4.92%.The company had revenue of $5.98 billion for the quarter, compared to analyst estimates of $5.51 billion. During the same period in the prior year, the company posted $2.50 EPS. The company's revenue was up 10.2% compared to the same quarter last year. On average, research analysts expect that CDW Corporation will post 9.41 earnings per share for the current fiscal year.

CDW Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Monday, August 25th were paid a $0.625 dividend. This represents a $2.50 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Monday, August 25th. CDW's dividend payout ratio is currently 31.06%.

Institutional Investors Weigh In On CDW

Several large investors have recently modified their holdings of CDW. GW&K Investment Management LLC grew its position in CDW by 78.9% during the 1st quarter. GW&K Investment Management LLC now owns 170 shares of the information technology services provider's stock worth $27,000 after acquiring an additional 75 shares during the last quarter. Orion Capital Management LLC bought a new stake in CDW during the 4th quarter worth approximately $30,000. Bayforest Capital Ltd bought a new stake in CDW during the 1st quarter worth approximately $31,000. Pandora Wealth Inc. bought a new stake in CDW during the 1st quarter worth approximately $32,000. Finally, Stone House Investment Management LLC bought a new stake in CDW during the 1st quarter worth approximately $34,000. 93.15% of the stock is currently owned by institutional investors.

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.