Stock Traders Purchase Large Volume of CDW Call Options (NASDAQ:CDW)

CDW Co. (NASDAQ:CDW - Get Free Report) was the recipient of unusually large options trading on Wednesday. Traders purchased 2,078 call options on the stock. This is an increase of approximately 448% compared to the average volume of 379 call options.

CDW Stock Performance

NASDAQ:CDW traded down $27.25 during mid-day trading on Wednesday, reaching $214.61. 2,421,992 shares of the stock were exchanged, compared to its average volume of 714,849. The company has a 50 day simple moving average of $247.34 and a 200-day simple moving average of $229.26. The stock has a market capitalization of $28.84 billion, a P/E ratio of 27.17, a P/E/G ratio of 2.78 and a beta of 1.09. The company has a quick ratio of 1.11, a current ratio of 1.23 and a debt-to-equity ratio of 2.46. CDW has a 1 year low of $162.59 and a 1 year high of $263.37.

CDW (NASDAQ:CDW - Get Free Report) last released its quarterly earnings results on Wednesday, February 7th. The information technology services provider reported $2.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.56 by $0.01. CDW had a return on equity of 73.93% and a net margin of 5.17%. The firm had revenue of $5.02 billion for the quarter, compared to the consensus estimate of $5.32 billion. During the same quarter last year, the business posted $2.40 EPS. The firm's quarterly revenue was down 7.7% compared to the same quarter last year. Analysts anticipate that CDW will post 9.89 earnings per share for the current fiscal year.

CDW declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, February 7th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to purchase up to 2.4% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its stock is undervalued.

CDW Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 11th. Shareholders of record on Friday, May 24th will be paid a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 1.16%. CDW's dividend payout ratio (DPR) is currently 30.62%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. BNP Paribas Financial Markets lifted its holdings in shares of CDW by 188.4% in the 1st quarter. BNP Paribas Financial Markets now owns 212,994 shares of the information technology services provider's stock valued at $54,480,000 after buying an additional 139,145 shares during the period. Centric Wealth Management lifted its holdings in shares of CDW by 3.3% in the 1st quarter. Centric Wealth Management now owns 18,116 shares of the information technology services provider's stock valued at $4,382,000 after buying an additional 574 shares during the period. Mission Wealth Management LP acquired a new stake in shares of CDW in the 1st quarter valued at approximately $256,000. Diversify Advisory Services LLC acquired a new stake in shares of CDW in the 1st quarter valued at approximately $525,000. Finally, SeaBridge Investment Advisors LLC lifted its holdings in shares of CDW by 3.1% in the 1st quarter. SeaBridge Investment Advisors LLC now owns 19,359 shares of the information technology services provider's stock valued at $4,952,000 after buying an additional 587 shares during the period. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on CDW shares. JPMorgan Chase & Co. increased their target price on CDW from $267.00 to $280.00 and gave the stock an "overweight" rating in a research note on Thursday, April 11th. Barclays increased their price target on CDW from $219.00 to $261.00 and gave the company an "equal weight" rating in a research report on Thursday, February 8th. Evercore ISI increased their price target on CDW from $250.00 to $300.00 and gave the company an "outperform" rating in a research report on Friday, March 22nd. Finally, Citigroup increased their price target on CDW from $255.00 to $295.00 and gave the company a "buy" rating in a research report on Thursday, April 4th. Three equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $242.67.

About CDW

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.