Ethic Inc. Buys 57,959 Shares of CDW Corporation $CDW

Key Points

• Ethic Inc. significantly increased its CDW position, buying 57,959 shares in the third quarter to bring its holdings to 63,659 shares, valued at about $8.16 million.
• CDW beat quarterly earnings and revenue estimates: earnings per share were $3.26 versus $2.98 expected, while revenue of $6.75 billion rose 17.7% year over year.
• CDW raised its quarterly dividend from $0.63 to $0.68 per share, equivalent to an annualized dividend of $2.72 and a 1.7% yield.

Ethic Inc. raised its stake in shares of CDW Corporation (NASDAQ:CDW - Free Report) by 1,016.8% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 63,659 shares of the information technology services provider's stock after acquiring an additional 57,959 shares during the quarter. Ethic Inc. owned approximately 0.05% of CDW worth $8,159,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Parkside Financial Bank & Trust lifted its stake in shares of CDW by 48.1% during the 2nd quarter. Parkside Financial Bank & Trust now owns 268 shares of the information technology services provider's stock worth $38,000 after purchasing an additional 87 shares during the last quarter. V Square Quantitative Management LLC boosted its position in CDW by 2.8% during the third quarter. V Square Quantitative Management LLC now owns 3,252 shares of the information technology services provider's stock valued at $417,000 after purchasing an additional 89 shares in the last quarter. Covestor Ltd grew its stake in CDW by 9.0% in the third quarter. Covestor Ltd now owns 1,076 shares of the information technology services provider's stock valued at $138,000 after purchasing an additional 89 shares during the last quarter. CX Institutional grew its stake in CDW by 4.0% in the third quarter. CX Institutional now owns 2,585 shares of the information technology services provider's stock valued at $331,000 after purchasing an additional 99 shares during the last quarter. Finally, VestGen Advisors LLC grew its stake in CDW by 5.7% in the third quarter. VestGen Advisors LLC now owns 2,302 shares of the information technology services provider's stock valued at $295,000 after purchasing an additional 124 shares during the last quarter. 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 recent research reports. Weiss Ratings upgraded shares of CDW from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 25th. UBS Group raised their price target on shares of CDW from $159.00 to $195.00 and gave the company a "buy" rating in a report on Thursday. Barclays cut their price objective on shares of CDW from $150.00 to $148.00 and set an "equal weight" rating on the stock in a research report on Monday, September 21st. Morgan Stanley boosted their price objective on shares of CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. Finally, Citigroup increased their target price on shares of CDW from $150.00 to $170.00 and gave the company a "neutral" rating in a research report on Thursday. One 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 stock. Based on data from MarketBeat.com, CDW presently has an average rating of "Moderate Buy" and a consensus price target of $167.38.

CDW Price Performance

Shares of NASDAQ CDW opened at $157.00 on Monday. The company has a debt-to-equity ratio of 2.32, a quick ratio of 1.15 and a current ratio of 1.26. The company has a market cap of $19.60 billion, a PE ratio of 18.32, a P/E/G ratio of 1.39 and a beta of 0.92. The business has a 50-day simple moving average of $148.73 and a two-hundred day simple moving average of $133.76. CDW Corporation has a fifty-two week low of $97.12 and a fifty-two week high of $172.47.

CDW (NASDAQ:CDW - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The information technology services provider reported $3.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.98 by $0.28. CDW had a return on equity of 52.23% and a net margin of 4.48%. The business had revenue of $6.75 billion for the quarter, compared to analyst estimates of $6.19 billion. During the same quarter in the previous year, the firm earned $2.71 earnings per share. The company's revenue was up 17.7% on a year-over-year basis. As a group, equities analysts expect that CDW Corporation will post 10.33 EPS for the current fiscal year.

CDW Increases Dividend

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

Key CDW News

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

About CDW

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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