Empowered Funds LLC Acquires New Position in CDW Corporation $CDW

Key Points

• Empowered Funds LLC acquired 6,892 CDW shares worth approximately $969,000 in the second quarter, while 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.
• The company announced a quarterly dividend of $0.63 per share, equivalent to an annualized $2.52 payout and a 1.7% yield; analysts maintain a consensus “Moderate Buy” rating with an average $147 price target.

Empowered Funds LLC acquired a new stake in CDW Corporation (NASDAQ:CDW - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 6,892 shares of the information technology services provider's stock, valued at approximately $969,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in CDW. BlackRock Inc. bought a new position in shares of CDW during the 2nd quarter worth approximately $2,143,082,000. Pzena Investment Management LLC purchased a new stake in CDW in the 2nd quarter worth about $371,135,000. Jupiter Topco LLC bought a new stake in CDW during the 2nd quarter valued at $300,073,000. Bank of America Corp DE purchased a new stake in CDW in the 2nd quarter worth approximately $255,058,000. Finally, Freestone Grove Partners LP purchased a new position in shares of CDW during the second quarter worth about $115,085,000. Institutional investors and hedge funds own 93.15% of the company's stock.

CDW Price Performance

Shares of CDW stock opened at $152.38 on Friday. The firm has a market capitalization of $19.05 billion, a price-to-earnings ratio of 18.31, a PEG ratio of 2.02 and a beta of 0.95. 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's 50-day simple moving average is $139.96 and its 200-day simple moving average is $129.24. CDW Corporation has a fifty-two week low of $97.12 and a fifty-two week high of $171.55.

CDW (NASDAQ:CDW - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share for the quarter, beating 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 business had revenue of $6.57 billion for the quarter, compared to the consensus estimate of $6.21 billion. During the same quarter in the previous year, the business earned $2.60 EPS. The company's quarterly revenue was up 10.0% compared to the same quarter last year. As a group, equities analysts forecast that CDW Corporation will post 10.33 earnings per share for the current fiscal year.

CDW Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Tuesday, August 25th will be paid a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Tuesday, August 25th. CDW's dividend payout ratio (DPR) is 30.29%.

Key Stories Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: AI-services acquisition strengthens growth strategy: CDW agreed to acquire Lovelytics, a data and AI services firm, for approximately $525 million. The deal is intended to expand CDW’s capabilities in data analytics, artificial intelligence and related consulting services, potentially increasing its exposure to customers investing in AI transformation. CDW Agrees to Acquire Lovelytics CDW To Acquire Lovelytics For Approximately $525 Million
• Positive Sentiment: Broader AI demand may support CDW: Coverage of CDW’s expanding AI expertise, along with articles discussing agentic AI adoption in K–12 IT departments and preparations by federal agencies for AI disruption, points to growing demand for AI implementation and support services across public-sector and enterprise customers. CDW Expands AI Expertise How Agentic AI Can Supplement K–12 IT Help Desks
• Positive Sentiment: Analyst sentiment remains constructive: CDW received a consensus “Moderate Buy” rating, while a Zacks review notes the stock’s strong performance since its latest earnings report. The previous quarter also featured earnings and revenue above consensus estimates, reinforcing the favorable backdrop. CDW Receives Consensus Moderate Buy Rating Why Is CDW Up Since Its Last Earnings Report?
• Negative Sentiment: Deal execution is the main risk: The roughly $525 million Lovelytics purchase increases CDW’s capital commitment and introduces integration risk. Investors will likely watch the transaction’s funding, timing and contribution to revenue and earnings before assigning greater value to the AI strategy. CDW To Acquire Lovelytics To Expand Data And AI Services

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Royal Bank Of Canada raised CDW to an "outperform" rating and set a $130.00 target price for the company in a research note on Wednesday, May 27th. Morgan Stanley upped their price objective on CDW from $170.00 to $171.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Weiss Ratings raised CDW from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 25th. Citigroup increased their price target on CDW from $123.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Finally, JPMorgan Chase & Co. upgraded CDW from a "neutral" rating to an "overweight" rating and set a $130.00 price target for the company in a report on Wednesday, May 27th. One 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. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $147.00.

Insider Activity at CDW

In other CDW news, insider Elizabeth Connelly sold 26,695 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $137.62, for a total value of $3,673,765.90. Following the transaction, the insider directly owned 34,215 shares in the company, valued at $4,708,668.30. The trade was a 43.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.82% of the stock is currently owned by corporate insiders.

CDW 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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