CDW Corporation $CDW Stock Position Lifted by Pzena Investment Management LLC

Key Points

• Pzena Investment Management increased its CDW stake by 27.1% in the third quarter, adding 714,565 shares to hold about 3.35 million shares, worth approximately $429.8 million.
• CDW reported quarterly earnings of $3.26 per share and revenue of $6.75 billion, beating analyst estimates; revenue rose 17.7% year over year, though margin pressure and rising expenses remain risks.
• CDW raised its quarterly dividend 7.9%, from $0.63 to $0.68 per share. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $150.12.

Pzena Investment Management LLC increased its position in CDW Corporation (NASDAQ:CDW - Free Report) by 27.1% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 3,353,465 shares of the information technology services provider's stock after buying an additional 714,565 shares during the quarter. CDW accounts for approximately 1.3% of Pzena Investment Management LLC's holdings, making the stock its 27th biggest holding. Pzena Investment Management LLC owned about 2.68% of CDW worth $429,780,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in CDW during the 2nd quarter valued at $2,143,082,000. Jupiter Topco LLC bought a new stake in CDW in the 2nd quarter worth $300,073,000. Bank of America Corp DE purchased a new position in shares of CDW in the second quarter valued at about $255,058,000. Assenagon Asset Management S.A. increased its position in shares of CDW by 2,947.4% in the third quarter. Assenagon Asset Management S.A. now owns 1,757,584 shares of the information technology services provider's stock valued at $225,252,000 after acquiring an additional 1,699,909 shares during the period. Finally, Robeco Institutional Asset Management B.V. increased its position in shares of CDW by 9,978.5% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,645,222 shares of the information technology services provider's stock valued at $210,852,000 after acquiring an additional 1,628,898 shares during the period. 93.15% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at CDW

In other news, insider Elizabeth Connelly sold 26,695 shares of CDW stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.82% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Morgan Stanley upped 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. Citigroup raised their target price on CDW from $123.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Barclays reduced their price target on CDW from $150.00 to $148.00 and set an "equal weight" rating on the stock in a report on Monday, September 21st. Finally, Weiss Ratings raised CDW from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 25th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $150.12.

CDW News Summary

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported adjusted earnings of $3.26 per share, above analyst expectations of about $2.98, and revenue of $6.755 billion versus estimates of roughly $6.19 billion. Revenue grew 17.7% year over year. Article: CDW Stock Jumps as AI Infrastructure Demand Drives Q3 Beat
• Positive Sentiment: Reports attributed the strong quarter to enterprise AI adoption and broad-based demand. The earnings call also highlighted record growth and the company’s outlook, supporting investor confidence in demand. Article: CDW Earnings Call Highlights Record Growth and Outlook
• Positive Sentiment: The board declared a quarterly dividend of $0.68 per share, up 7.9% from $0.63. The higher payout adds to shareholder returns and signals confidence in cash generation. Article: CDW Raises Quarterly Dividend by 7.9%
• Negative Sentiment: Despite the sales and earnings beat, margin compression and rising expenses were cited as risks that investors will monitor for their impact on future profitability. Article: CDW Q3 Earnings Beat Despite Margin Compression

CDW Stock Performance

Shares of CDW stock opened at $168.75 on Thursday. The stock has a fifty day moving average of $148.23 and a 200 day moving average of $133.47. CDW Corporation has a 52 week low of $97.12 and a 52 week high of $172.47. The firm has a market capitalization of $21.10 billion, a price-to-earnings ratio of 20.28, a PEG ratio of 1.96 and a beta of 0.92. The company has a quick ratio of 1.05, a current ratio of 1.17 and a debt-to-equity ratio of 1.97.

CDW (NASDAQ:CDW - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The information technology services provider reported $3.26 earnings per share for the quarter, beating the consensus estimate of $2.98 by $0.28. The business had revenue of $6.75 billion for the quarter, compared to analysts' expectations of $6.19 billion. CDW had a net margin of 4.60% and a return on equity of 50.61%. The firm's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.71 earnings per share. As a group, research analysts expect that CDW Corporation will post 10.33 earnings per share for the current year.

CDW Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 25th will be given a $0.68 dividend. The ex-dividend date of this dividend is Wednesday, November 25th. This represents a $2.72 annualized dividend and a dividend yield of 1.6%. This is a positive change from CDW's previous quarterly dividend of $0.63. CDW's dividend payout ratio is 30.29%.

About CDW

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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