CDW Corporation (CDW) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analysts hold a Moderate Buy consensus on CDW, with five buy ratings, one strong-buy rating and three holds. The average 12-month price target is $150.12, below the stock’s reported $164.62 opening price.
• CDW exceeded quarterly expectations, reporting $2.91 in EPS versus a $2.80 consensus and $6.57 billion in revenue, up 10% year over year. Analysts forecast full-year EPS of $10.33.
• The company pays a quarterly dividend of $0.63, equivalent to a 1.5% yield and a 30.29% payout ratio, while institutional investors own a substantial 93.15% of outstanding shares.

Shares of CDW Corporation (NASDAQ:CDW - Get Free Report) have received a consensus rating of "Moderate Buy" from the nine analysts that are presently covering the company, Marketbeat reports. Three research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among analysts that have covered the stock in the last year is $150.12.

Several equities analysts recently commented on the stock. Citigroup boosted their price objective on shares of CDW from $123.00 to $145.00 and gave the company a "neutral" rating in a research note on Monday, July 13th. Morgan Stanley upped their target price on shares of CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Weiss Ratings upgraded shares of CDW from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 25th. Finally, Barclays cut their price target on shares of CDW from $150.00 to $148.00 and set an "equal weight" rating for the company in a report on Monday, September 21st.

CDW Stock Performance

Shares of CDW opened at $164.62 on Friday. CDW has a 52-week low of $97.12 and a 52-week high of $165.56. The stock's 50-day simple moving average is $144.31 and its 200 day simple moving average is $134.91. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.05 and a current ratio of 1.17. The stock has a market capitalization of $20.58 billion, a price-to-earnings ratio of 19.79, a price-to-earnings-growth ratio of 2.07 and a beta of 0.95.

CDW (NASDAQ:CDW - Get Free Report) last posted its earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share for the quarter, beating analysts' consensus estimates of $2.80 by $0.11. CDW had a return on equity of 50.61% and a net margin of 4.60%. The business had revenue of $6.57 billion during the quarter, compared to analyst estimates of $6.21 billion. During the same quarter in the previous year, the firm earned $2.60 EPS. The company's quarterly revenue was up 10.0% compared to the same quarter last year. Research analysts forecast that CDW will post 10.33 EPS for the current fiscal year.

CDW Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a $0.63 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $2.52 annualized dividend and a dividend yield of 1.5%. CDW's dividend payout ratio is presently 30.29%.

Insider Buying and Selling at CDW

In related news, insider Elizabeth Connelly sold 26,695 shares of CDW stock in a transaction on Friday, August 7th. The stock was sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the completion of the sale, the insider owned 34,215 shares of the company's stock, valued at approximately $4,708,668.30. This trade represents a 43.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.82% of the company's stock.

Hedge Funds Weigh In On CDW

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fifth Third Wealth Advisors LLC purchased a new stake in CDW during the third quarter valued at about $1,701,000. Sterling Capital Management LLC lifted its stake in CDW by 682.9% during the third quarter. Sterling Capital Management LLC now owns 30,800 shares of the information technology services provider's stock worth $3,947,000 after purchasing an additional 26,866 shares during the last quarter. Yousif Capital Management LLC lifted its stake in CDW by 585.6% during the third quarter. Yousif Capital Management LLC now owns 117,095 shares of the information technology services provider's stock worth $15,007,000 after purchasing an additional 100,017 shares during the last quarter. SRH Advisors LLC lifted its stake in CDW by 6,123.5% during the third quarter. SRH Advisors LLC now owns 2,116 shares of the information technology services provider's stock worth $271,000 after purchasing an additional 2,082 shares during the last quarter. Finally, Sepio Capital LP boosted its holdings in shares of CDW by 34.3% in the 3rd quarter. Sepio Capital LP now owns 4,644 shares of the information technology services provider's stock worth $595,000 after purchasing an additional 1,186 shares in the last quarter. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

CDW Company Profile

CDW Corporation NASDAQ: CDW is a provider of technology products and services for business, government, education and healthcare organizations. The company helps customers plan, procure, implement and manage information technology solutions from leading hardware, software and cloud vendors.

Its offerings include computers, servers, networking equipment, data-storage systems, cybersecurity products, collaboration tools, software licensing and cloud solutions. CDW also provides professional and managed services, including technology consulting, infrastructure deployment, cloud management, security support and lifecycle services.

Founded in 1984 as Computer Discount Warehouse, CDW serves customers primarily in the United States, Canada and the United Kingdom through sales teams, digital channels and technology partnerships.

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