CDW (NASDAQ:CDW) Stock Price Up 5.6% on Better-Than-Expected Earnings

CDW Co. (NASDAQ:CDW - Get Free Report) shares traded up 5.6% on Wednesday following a stronger than expected earnings report. The company traded as high as $171.52 and last traded at $173.03. 536,288 shares were traded during mid-day trading, a decline of 55% from the average session volume of 1,182,218 shares. The stock had previously closed at $163.93.

The information technology services provider reported $2.15 EPS for the quarter, topping analysts' consensus estimates of $1.96 by $0.19. The business had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $4.93 billion. CDW had a return on equity of 55.42% and a net margin of 5.13%. The business's revenue for the quarter was up 6.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.92 EPS.

CDW Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Monday, May 26th will be issued a dividend of $0.625 per share. The ex-dividend date of this dividend is Friday, May 23rd. This represents a $2.50 dividend on an annualized basis and a dividend yield of 1.32%. CDW's payout ratio is 30.98%.

CDW announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 5th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the information technology services provider to repurchase up to 2.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

CDW has been the subject of several recent research reports. UBS Group lowered their price target on CDW from $236.00 to $210.00 and set a "buy" rating for the company in a report on Thursday. Morgan Stanley boosted their price objective on CDW from $193.00 to $201.00 and gave the company an "equal weight" rating in a report on Thursday, February 6th. JPMorgan Chase & Co. cut their target price on shares of CDW from $222.00 to $175.00 and set a "neutral" rating on the stock in a report on Thursday, April 17th. Citigroup raised their target price on shares of CDW from $160.00 to $180.00 and gave the stock a "neutral" rating in a report on Thursday. Finally, Barclays cut their target price on shares of CDW from $223.00 to $205.00 and set an "equal weight" rating on the stock in a report on Thursday. Four research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, CDW presently has an average rating of "Moderate Buy" and a consensus price target of $216.38.

Insider Activity

In other CDW news, insider Christine A. Leahy sold 40,917 shares of the company'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 transaction, the insider now owns 144,931 shares of the company's stock, valued at approximately $26,293,382.02. This represents a 22.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.84% of the company's stock.

Hedge Funds Weigh In On CDW

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. GW&K Investment Management LLC grew its holdings in shares of 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 valued at $27,000 after acquiring an additional 75 shares in the last quarter. Orion Capital Management LLC bought a new stake in CDW in the fourth quarter worth $30,000. Bayforest Capital Ltd bought a new stake in CDW in the first quarter worth $31,000. Allworth Financial LP increased its position in CDW by 39.7% during the fourth quarter. Allworth Financial LP now owns 183 shares of the information technology services provider's stock worth $32,000 after buying an additional 52 shares during the last quarter. Finally, OFI Invest Asset Management acquired a new position in CDW during the fourth quarter worth $32,000. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

CDW Stock Up 5.5%

The company has a market cap of $24.86 billion, a price-to-earnings ratio of 23.69, a PEG ratio of 3.21 and a beta of 0.91. The business has a 50-day simple moving average of $161.13 and a two-hundred day simple moving average of $177.13. The company has a quick ratio of 1.24, a current ratio of 1.35 and a debt-to-equity ratio of 2.38.

CDW Company Profile

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.