Kendall Capital Management Makes New $3.58 Million Investment in CDW Corporation $CDW

Key Points

• Kendall Capital Management initiated a $3.58 million position in CDW during the second quarter, buying 25,485 shares. Institutional investors collectively own 93.15% of the company.
• CDW reported quarterly earnings of $2.91 per share, exceeding estimates of $2.80, while revenue rose 10% year over year to $6.57 billion. Analysts maintain a “Moderate Buy” consensus rating with a $147 average price target.
• The company declared a quarterly dividend of $0.63 per share, equivalent to an annualized $2.52 payout and a 1.8% yield. An insider subsequently sold 26,695 shares, while a director had earlier purchased 18,000 shares.

Kendall Capital Management bought a new stake in shares of CDW Corporation (NASDAQ:CDW - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 25,485 shares of the information technology services provider's stock, valued at approximately $3,584,000.

A number of other hedge funds also recently modified their holdings of the business. Compass Financial Management LLC acquired a new stake in shares of CDW in the second quarter worth $55,000. Daiichi Life Insurance Co. Ltd. purchased a new position in shares of CDW during the second quarter valued at $399,000. Commerce Bank acquired a new position in CDW during the second quarter valued at $1,509,000. Pinnbrook Capital Management LP acquired a new position in CDW during the second quarter valued at $6,230,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in CDW in the 2nd quarter worth about $330,000. Hedge funds and other institutional investors own 93.15% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on CDW. Barclays decreased their price objective on CDW from $144.00 to $123.00 and set an "equal weight" rating for the company in a research report on Thursday, May 7th. Raymond James Financial set a $150.00 target price on CDW in a report on Wednesday, May 6th. Morgan Stanley increased their price target on shares of CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Citigroup raised their price target on shares of CDW from $123.00 to $145.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. Finally, Royal Bank Of Canada raised shares of CDW to an "outperform" rating and set a $130.00 price objective on the stock in a research report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $147.00.

CDW Price Performance

CDW opened at $137.25 on Friday. The stock has a market cap of $17.16 billion, a price-to-earnings ratio of 16.50, a PEG ratio of 1.81 and a beta of 0.96. CDW Corporation has a 1 year low of $97.12 and a 1 year high of $171.55. The company has a current ratio of 1.17, a quick ratio of 1.05 and a debt-to-equity ratio of 1.97. The stock has a fifty day moving average price of $136.37 and a 200 day moving average price of $128.40.

CDW (NASDAQ:CDW - Get Free Report) last issued its earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 EPS for the quarter, beating analysts' consensus estimates of $2.80 by $0.11. CDW had a return on equity of 50.61% and a net margin of 4.60%.The firm 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 company posted $2.60 earnings per share. The business's quarterly revenue was up 10.0% compared to the same quarter last year. Analysts forecast that CDW Corporation will post 10.28 EPS for the current fiscal year.

CDW Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Tuesday, August 25th will be paid a $0.63 dividend. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $2.52 annualized dividend and a dividend yield of 1.8%. CDW's payout ratio is presently 30.29%.

Insider Activity at CDW

In related news, insider Elizabeth H. Connelly sold 26,695 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $137.62, for a total value of $3,673,765.90. Following the transaction, the insider owned 34,215 shares in the company, valued at approximately $4,708,668.30. This represents a 43.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director David W. Nelms acquired 18,000 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The shares were acquired at an average cost of $111.43 per share, for a total transaction of $2,005,740.00. Following the transaction, the director owned 51,025 shares of the company's stock, valued at approximately $5,685,715.75. This represents a 54.50% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.82% of the company's stock.

About CDW

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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