483,500 Shares in CDW Corporation $CDW Bought by Lakewood Capital Management LP

Key Points

• Lakewood Capital Management purchased 483,500 CDW shares worth approximately $68 million, making CDW its eighth-largest holding and representing about 3.5% of its portfolio. Institutional investors collectively own 93.15% of the company.
• CDW exceeded quarterly expectations, reporting $2.91 in earnings per share and $6.57 billion in revenue, with revenue up 10% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $147.
• CDW declared a quarterly dividend of $0.63 per share, equivalent to $2.52 annually and a 1.9% yield. Recent insider activity was mixed, with a director buying 18,000 shares while another insider sold 26,695 shares.

Lakewood Capital Management LP purchased a new stake in CDW Corporation (NASDAQ:CDW - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 483,500 shares of the information technology services provider's stock, valued at approximately $67,999,000. CDW makes up about 3.5% of Lakewood Capital Management LP's investment portfolio, making the stock its 8th largest holding. Lakewood Capital Management LP owned 0.39% of CDW as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the stock. Hollencrest Capital Management grew its stake in shares of CDW by 909.1% in the 1st quarter. Hollencrest Capital Management now owns 222 shares of the information technology services provider's stock valued at $27,000 after buying an additional 200 shares during the period. Allied Private Wealth LLC acquired a new position in CDW during the 2nd quarter worth approximately $28,000. Keating Financial Advisory Services Inc. acquired a new position in CDW during the 2nd quarter worth approximately $28,000. Root Financial Partners LLC boosted its holdings in 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 in the last quarter. Finally, Johnson Financial Group Inc. bought a new position in CDW in the second quarter worth approximately $51,000. Institutional investors and hedge funds own 93.15% of the company's stock.

Insiders Place Their Bets

In other news, Director David W. Nelms acquired 18,000 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were purchased at an average cost of $111.43 per share, with a total value of $2,005,740.00. Following the acquisition, the director directly owned 51,025 shares of the company's stock, valued at $5,685,715.75. The trade was a 54.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Elizabeth H. Connelly sold 26,695 shares of the company's 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. The trade was a 43.83% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.82% of the company's stock.

Analyst Upgrades and Downgrades

CDW has been the subject of several recent research reports. Citigroup boosted their price objective on CDW from $123.00 to $145.00 and gave the company a "neutral" rating in a report on Monday, July 13th. Barclays cut their target price on CDW from $144.00 to $123.00 and set an "equal weight" rating on the stock in a report on Thursday, May 7th. Weiss Ratings upgraded shares of CDW from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, June 11th. Raymond James Financial set a $150.00 price objective on shares of CDW in a report on Wednesday, May 6th. Finally, Morgan Stanley raised their price objective on shares of CDW from $170.00 to $171.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $147.00.

CDW Stock Performance

Shares of CDW opened at $132.51 on Tuesday. 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 50 day moving average price of $136.39 and a two-hundred day moving average price of $128.45. The firm has a market capitalization of $16.57 billion, a P/E ratio of 15.93, a P/E/G ratio of 1.81 and a beta of 0.96. CDW Corporation has a 52 week low of $97.12 and a 52 week high of $171.55.

CDW (NASDAQ:CDW - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The information technology services provider reported $2.91 EPS for the quarter, topping the consensus estimate of $2.80 by $0.11. CDW had a return on equity of 50.61% and a net margin of 4.60%.The firm had revenue of $6.57 billion during the quarter, compared to the consensus estimate of $6.21 billion. During the same period in the prior year, the business posted $2.60 earnings per share. The company's quarterly revenue was up 10.0% compared to the same quarter last year. Equities analysts forecast that CDW Corporation will post 10.28 earnings per share for the current fiscal year.

CDW Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Tuesday, August 25th will be given a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, August 25th. CDW's dividend payout ratio is presently 30.29%.

CDW Company Profile

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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