Sumitomo Mitsui DS Asset Management Company Ltd Buys 125,043 Shares of CDW Corporation $CDW

Key Points

• Sumitomo Mitsui DS Asset Management increased its CDW stake by 725.3% in the third quarter, purchasing 125,043 additional shares to own 142,283 shares valued at approximately $18.2 million.
• Institutional investors and hedge funds own 93.15% of CDW, with several firms initiating or substantially increasing positions during the second quarter.
• Analysts maintain a generally positive outlook, assigning CDW a “Moderate Buy” consensus rating and an average price target of $150.12; the company recently exceeded quarterly earnings and revenue estimates.

Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in CDW Corporation (NASDAQ:CDW - Free Report) by 725.3% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 142,283 shares of the information technology services provider's stock after purchasing an additional 125,043 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd owned approximately 0.11% of CDW worth $18,235,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of CDW. Kendall Capital Management bought a new stake in CDW in the second quarter valued at $3,584,000. Man Group plc acquired a new position in CDW during the second quarter worth $1,262,000. Pzena Investment Management LLC acquired a new position in CDW during the second quarter worth $371,135,000. Raiffeisen Bank International AG raised its stake in CDW by 17,453.5% during the second quarter. Raiffeisen Bank International AG now owns 15,096 shares of the information technology services provider's stock worth $2,111,000 after acquiring an additional 15,010 shares in the last quarter. Finally, Jupiter Topco LLC bought a new position in shares of CDW during the second quarter valued at $300,073,000. 93.15% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Morgan Stanley lifted their price objective on CDW from $170.00 to $171.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Citigroup upped their target price on shares of CDW from $123.00 to $145.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. Barclays dropped their target price on shares of CDW from $150.00 to $148.00 and set an "equal weight" rating for the company in a research report on Monday, September 21st. Finally, Weiss Ratings upgraded shares of CDW from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 25th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $150.12.

CDW Stock Performance

NASDAQ:CDW opened at $154.99 on Wednesday. The stock has a market capitalization of $19.38 billion, a P/E ratio of 18.63, a price-to-earnings-growth ratio of 2.00 and a beta of 0.95. The company has a current ratio of 1.17, a quick ratio of 1.05 and a debt-to-equity ratio of 1.97. CDW Corporation has a 1 year low of $97.12 and a 1 year high of $161.10. The firm has a 50 day moving average of $143.43 and a 200-day moving average of $134.35.

CDW (NASDAQ:CDW - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 EPS for the quarter, topping 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 business had revenue of $6.57 billion for the quarter, compared to analyst estimates of $6.21 billion. During the same period in the prior year, the company earned $2.60 EPS. CDW's revenue for the quarter was up 10.0% on a year-over-year basis. As a group, sell-side analysts anticipate that CDW Corporation will post 10.33 EPS for the current fiscal year.

CDW Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were issued a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Tuesday, August 25th. CDW's dividend payout ratio is presently 30.29%.

Insider Activity at CDW

In other news, insider Elizabeth Connelly sold 26,695 shares of the firm's stock in a transaction 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 completion of the sale, the insider directly owned 34,215 shares in the company, valued at approximately $4,708,668.30. This trade represents a 43.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 0.82% of the company's stock.

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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