Citigroup Inc. Buys 77,603 Shares of CDW Corporation (NASDAQ:CDW)

Key Points

• Citigroup Inc. increased its stake in CDW Corporation by 53.2%, owning approximately 223,359 shares valued at $35.8 million after purchasing an additional 77,603 shares during the first quarter.
• CDW recently reported an EPS of $2.60, exceeding estimates and showing a 10.2% increase in revenue year-over-year, amounting to $5.98 billion for the quarter.
• The company announced a quarterly dividend of $0.625 per share, reflecting an annualized yield of 1.6% and a payout ratio of 31.06%.

Citigroup Inc. increased its position in shares of CDW Corporation (NASDAQ:CDW - Free Report) by 53.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 223,359 shares of the information technology services provider's stock after buying an additional 77,603 shares during the period. Citigroup Inc. owned about 0.17% of CDW worth $35,796,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in CDW by 2.9% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,508,543 shares of the information technology services provider's stock valued at $241,759,000 after purchasing an additional 42,472 shares during the period. Headlands Technologies LLC lifted its stake in shares of CDW by 5.6% in the 1st quarter. Headlands Technologies LLC now owns 30,774 shares of the information technology services provider's stock worth $4,932,000 after acquiring an additional 1,624 shares during the period. Deutsche Bank AG lifted its stake in shares of CDW by 6.2% in the 1st quarter. Deutsche Bank AG now owns 568,454 shares of the information technology services provider's stock worth $91,100,000 after acquiring an additional 33,247 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in shares of CDW by 2.8% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 819,042 shares of the information technology services provider's stock worth $131,260,000 after acquiring an additional 22,184 shares during the period. Finally, ASR Vermogensbeheer N.V. acquired a new stake in shares of CDW in the 1st quarter worth approximately $20,895,000. Hedge funds and other institutional investors own 93.15% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. JPMorgan Chase & Co. upped their price objective on shares of CDW from $185.00 to $205.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Barclays decreased their target price on shares of CDW from $205.00 to $176.00 and set an "equal weight" rating for the company in a research report on Thursday, August 7th. UBS Group cut their target price on shares of CDW from $210.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday, August 7th. Finally, Citigroup upped their target price on shares of CDW from $180.00 to $200.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Four analysts have rated the stock with a hold rating and two have given a buy rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $202.00.

CDW Price Performance

CDW stock traded down $1.81 during midday trading on Friday, reaching $164.29. The company had a trading volume of 764,038 shares, compared to its average volume of 1,329,105. The company has a market capitalization of $21.53 billion, a price-to-earnings ratio of 20.44, a price-to-earnings-growth ratio of 2.81 and a beta of 0.95. The stock has a 50 day moving average price of $175.19 and a 200-day moving average price of $174.10. CDW Corporation has a 1-year low of $137.31 and a 1-year high of $231.38. The company has a debt-to-equity ratio of 2.28, a current ratio of 1.35 and a quick ratio of 1.22.

CDW (NASDAQ:CDW - Get Free Report) last issued its earnings results on Wednesday, August 6th. The information technology services provider reported $2.60 EPS for the quarter, topping the consensus estimate of $2.49 by $0.11. The firm had revenue of $5.98 billion during the quarter, compared to the consensus estimate of $5.51 billion. CDW had a return on equity of 53.63% and a net margin of 4.92%. The business's quarterly revenue was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.50 earnings per share. Equities research analysts expect that CDW Corporation will post 9.41 earnings per share for the current year.

CDW Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Stockholders of record on Monday, August 25th will be given a dividend of $0.625 per share. The ex-dividend date of this dividend is Monday, August 25th. This represents a $2.50 annualized dividend and a dividend yield of 1.5%. CDW's dividend payout ratio (DPR) is currently 31.06%.

CDW Profile

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.