CDW Corporation $CDW Stake Lifted by Brighton Jones LLC

Key Points

• Brighton Jones LLC increased its CDW stake by 710.7% in the third quarter, adding 20,539 shares to reach 23,429 shares valued at about $3.0 million.
• CDW’s latest quarterly results beat expectations: adjusted EPS was $3.26 versus a $2.98 consensus, while revenue of $6.75 billion rose 17.7% year over year.
• CDW raised its quarterly dividend 7.9% to $0.68 per share, equivalent to an annualized payout of $2.72.

Brighton Jones LLC lifted its stake in CDW Corporation (NASDAQ:CDW - Free Report) by 710.7% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 23,429 shares of the information technology services provider's stock after buying an additional 20,539 shares during the period. Brighton Jones LLC's holdings in CDW were worth $3,003,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in CDW in the second quarter valued at $2,143,082,000. Pzena Investment Management LLC boosted its stake in CDW by 27.1% in the third quarter. Pzena Investment Management LLC now owns 3,353,465 shares of the information technology services provider's stock valued at $429,780,000 after acquiring an additional 714,565 shares in the last quarter. Jupiter Topco LLC acquired a new position in CDW in the second quarter valued at $300,073,000. Alyeska Investment Group L.P. grew its holdings in shares of CDW by 197.1% during the second quarter. Alyeska Investment Group L.P. now owns 1,854,952 shares of the information technology services provider's stock worth $260,880,000 after purchasing an additional 1,230,517 shares during the last quarter. Finally, Bank of America Corp DE purchased a new position in shares of CDW during the second quarter worth about $255,058,000. 93.15% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Q3 results beat expectations. CDW reported adjusted EPS of $3.26 versus the $2.98 consensus and revenue of $6.75 billion versus $6.19 billion, with sales up 17.7% year over year. The company also raised its gross-profit outlook and signaled low-double-digit 2026 adjusted EPS growth. CDW sees double-digit growth in third quarter
• Positive Sentiment: Analysts raised price targets. JPMorgan and UBS moved their targets to $195, while Citigroup raised its target to $170 and maintained a neutral rating. Northcoast Research also raised its target, to $204. The upgrades reinforce optimism following the results. Citigroup target change
• Positive Sentiment: CDW increased its dividend. The quarterly payout rose 7.9% to $0.68 per share, signaling stronger shareholder returns. CDW dividend increase and risks
• Neutral Sentiment: Lovelytics acquisition adds a growth opportunity and investment cost. CDW acquired the data and analytics firm for $525 million; the deal may broaden its capabilities, but investors will assess integration and returns. Lovelytics sale to CDW
• Negative Sentiment: Financial and valuation risks remain. Commentary has flagged rising debt and shrinking margins, while questions about whether the shares already reflect strong results could limit upside. Evercore ISI also removed CDW from its TAP Outperform list. CDW valuation, results and Lovelytics deal

CDW Stock Performance

NASDAQ CDW opened at $157.00 on Monday. The firm has a market cap of $19.60 billion, a P/E ratio of 18.32, a P/E/G ratio of 1.39 and a beta of 0.92. CDW Corporation has a 52-week low of $97.12 and a 52-week high of $172.47. The business's 50-day moving average price is $148.73 and its 200 day moving average price is $133.76. The company has a quick ratio of 1.15, a current ratio of 1.26 and a debt-to-equity ratio of 2.32.

CDW (NASDAQ:CDW - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The information technology services provider reported $3.26 EPS for the quarter, beating the consensus estimate of $2.98 by $0.28. CDW had a return on equity of 52.23% and a net margin of 4.48%. The firm had revenue of $6.75 billion during the quarter, compared to the consensus estimate of $6.19 billion. During the same period in the prior year, the business earned $2.71 EPS. The firm's revenue was up 17.7% compared to the same quarter last year. On average, equities research analysts expect that CDW Corporation will post 10.33 earnings per share for the current year.

CDW Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 25th will be paid a dividend of $0.68 per share. This represents a $2.72 annualized dividend and a dividend yield of 1.7%. This is a boost from CDW's previous quarterly dividend of $0.63. The ex-dividend date is Wednesday, November 25th. CDW's dividend payout ratio (DPR) is currently 29.40%.

Analyst Ratings Changes

A number of analysts have recently commented on CDW shares. JPMorgan Chase & Co. lifted their target price on CDW from $170.00 to $195.00 and gave the stock an "overweight" rating in a research report on Thursday. UBS Group upped their target price on CDW from $159.00 to $195.00 and gave the company a "buy" rating in a research report on Thursday. Weiss Ratings upgraded CDW from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 25th. Citigroup raised their price target on CDW from $150.00 to $170.00 and gave the stock a "neutral" rating in a research note on Thursday. Finally, Morgan Stanley lifted their price target on CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a research report 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 assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $167.38.

CDW Profile

CDW Corporation is a provider of information technology products and services to businesses, government agencies, educational institutions and healthcare organizations. The company helps customers select, purchase, implement and manage technology solutions.

Its offerings include computers and other hardware, software, cloud services, cybersecurity, networking, data center infrastructure and collaboration tools. CDW also provides consulting, integration and ongoing technology support, helping customers plan and operate their IT environments.

Founded in 1984 as Computer Discount Warehouse, the company later adopted the CDW name.

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