CDW (NASDAQ:CDW) Stock Price Crosses Below 200-Day Moving Average - Should You Sell?

Key Points

• CDW's stock fell below its 200‑day moving average, trading as low as $132.80 and last at $133.11 versus a 200‑day MA of $135.20 on volume of about 1.08 million shares (down ~1.6%).
• Fundamentals remain solid: CDW beat Q results with $2.57 EPS vs. $2.44 expected and $5.51B in revenue (+6.3% YoY), while analysts maintain a consensus "Moderate Buy" with an average target of $160.43.
• Valuation and shareholder metrics: market cap ~$17.0B, PE 16.45, quarterly dividend $0.63 (annualized $2.52, 1.9% yield), and roughly 93% of shares held by institutions.

CDW Corporation (NASDAQ:CDW - Get Free Report)'s stock price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $135.20 and traded as low as $132.80. CDW shares last traded at $133.11, with a volume of 1,077,984 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on CDW shares. Morgan Stanley raised their price target on CDW from $141.00 to $142.00 and gave the company an "equal weight" rating in a report on Thursday, February 5th. Weiss Ratings reissued a "hold (c-)" rating on shares of CDW in a report on Tuesday, January 27th. Barclays decreased their price objective on CDW from $148.00 to $144.00 and set an "equal weight" rating on the stock in a report on Thursday, February 5th. Evercore reissued an "outperform" rating and set a $180.00 price objective on shares of CDW in a report on Tuesday, January 20th. Finally, UBS Group decreased their price objective on CDW from $190.00 to $162.00 and set a "buy" rating on the stock in a report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $160.43.

CDW Trading Down 1.6%

The company has a market capitalization of $17.03 billion, a PE ratio of 16.45, a PEG ratio of 1.86 and a beta of 1.02. The company has a current ratio of 1.18, a quick ratio of 1.10 and a debt-to-equity ratio of 1.77. The stock has a fifty day moving average of $124.73 and a two-hundred day moving average of $135.20.

CDW (NASDAQ:CDW - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The information technology services provider reported $2.57 earnings per share for the quarter, beating analysts' consensus estimates of $2.44 by $0.13. The company had revenue of $5.51 billion for the quarter, compared to analysts' expectations of $5.33 billion. CDW had a return on equity of 50.66% and a net margin of 4.76%.CDW's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period last year, the firm posted $2.48 EPS. As a group, sell-side analysts anticipate that CDW Corporation will post 10.01 earnings per share for the current fiscal year.

CDW Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Wednesday, February 25th were given a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a yield of 1.9%. The ex-dividend date was Wednesday, February 25th. CDW's dividend payout ratio (DPR) is presently 31.15%.

Hedge Funds Weigh In On CDW

Institutional investors and hedge funds have recently bought and sold shares of the stock. Root Financial Partners LLC boosted its stake in shares of CDW by 54.7% in the first quarter. Root Financial Partners LLC now owns 263 shares of the information technology services provider's stock worth $32,000 after acquiring an additional 93 shares during the period. New Mexico Educational Retirement Board boosted its stake in shares of CDW by 1.7% in the fourth quarter. New Mexico Educational Retirement Board now owns 6,050 shares of the information technology services provider's stock worth $824,000 after acquiring an additional 100 shares during the period. Empowered Funds LLC boosted its stake in shares of CDW by 1.2% in the first quarter. Empowered Funds LLC now owns 18,076 shares of the information technology services provider's stock worth $2,897,000 after acquiring an additional 216 shares during the period. Covestor Ltd boosted its stake in shares of CDW by 87.9% in the third quarter. Covestor Ltd now owns 483 shares of the information technology services provider's stock worth $77,000 after acquiring an additional 226 shares during the period. Finally, Brown Brothers Harriman & Co. boosted its stake in shares of CDW by 38.6% in the fourth quarter. Brown Brothers Harriman & Co. now owns 912 shares of the information technology services provider's stock worth $124,000 after acquiring an additional 254 shares during the period. 93.15% of the stock is currently owned by institutional investors.

About CDW

CDW NASDAQ: CDW is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.

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