Bank of New York Mellon Corp Sells 85,730 Shares of CDW Corporation $CDW

Key Points

• Bank of New York Mellon reduced its CDW stake by 9.9% in the fourth quarter, selling 85,730 shares and ending with 779,156 shares valued at about $106.1 million.
• Analysts remain cautiously positive on CDW overall, with a consensus rating of “Moderate Buy” and an average target price of $140.63, though several firms recently cut their price targets.
• CDW reported solid quarterly results, matching earnings expectations at $2.28 per share and posting revenue of $5.68 billion, up 9.2% year over year; it also declared a $0.63 quarterly dividend.

Bank of New York Mellon Corp trimmed its stake in CDW Corporation (NASDAQ:CDW - Free Report) by 9.9% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 779,156 shares of the information technology services provider's stock after selling 85,730 shares during the period. Bank of New York Mellon Corp owned 0.60% of CDW worth $106,121,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Marshall Wace LLP raised its stake in shares of CDW by 255.7% in the third quarter. Marshall Wace LLP now owns 599,248 shares of the information technology services provider's stock worth $95,448,000 after buying an additional 430,796 shares during the period. SG Americas Securities LLC raised its position in shares of CDW by 531.9% during the 4th quarter. SG Americas Securities LLC now owns 189,285 shares of the information technology services provider's stock valued at $25,781,000 after purchasing an additional 159,332 shares during the period. Life Cycle Investment Partners Ltd bought a new stake in shares of CDW during the 4th quarter valued at $18,948,000. PFA Pension Forsikringsaktieselskab purchased a new position in shares of CDW during the 4th quarter valued at $16,274,000. Finally, Danske Bank A S purchased a new position in shares of CDW during the 3rd quarter valued at $13,347,000. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

CDW has been the subject of a number of analyst reports. UBS Group cut their price target on CDW from $162.00 to $147.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Raymond James Financial set a $150.00 price objective on CDW in a research note on Wednesday, May 6th. Barclays cut their target price on CDW from $144.00 to $123.00 and set an "equal weight" rating for the company in a research report on Thursday, May 7th. JPMorgan Chase & Co. raised CDW from a "neutral" rating to an "overweight" rating and set a $130.00 target price on the stock in a research note on Wednesday, May 27th. Finally, Citigroup lowered their price target on CDW from $150.00 to $123.00 and set a "neutral" rating on the stock in a report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $140.63.

CDW Price Performance

NASDAQ CDW opened at $133.04 on Monday. The company has a debt-to-equity ratio of 1.81, a quick ratio of 1.06 and a current ratio of 1.16. The company has a market capitalization of $17.00 billion, a P/E ratio of 16.18, a P/E/G ratio of 1.78 and a beta of 1.00. CDW Corporation has a one year low of $97.12 and a one year high of $183.91. The stock has a 50 day moving average price of $122.51 and a 200-day moving average price of $128.93.

CDW (NASDAQ:CDW - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The information technology services provider reported $2.28 earnings per share for the quarter, hitting the consensus estimate of $2.28. The company had revenue of $5.68 billion for the quarter, compared to analysts' expectations of $5.48 billion. CDW had a net margin of 4.70% and a return on equity of 49.67%. CDW's quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.15 earnings per share. As a group, equities analysts predict that CDW Corporation will post 10.09 EPS for the current fiscal year.

CDW Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Monday, May 25th will be issued a $0.63 dividend. The ex-dividend date is Friday, May 22nd. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.9%. CDW's payout ratio is 30.66%.

Insider Buying and Selling at CDW

In related news, Director David W. Nelms acquired 18,000 shares of CDW stock in a transaction on Wednesday, May 27th. The shares were bought at an average cost of $111.43 per share, with a total value of $2,005,740.00. Following the completion of the purchase, 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 position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.82% of the stock is currently owned by company insiders.

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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