CDW (NASDAQ:CDW) Hits New 52-Week High After Better-Than-Expected Earnings

Key Points

• CDW shares surged to a new 52-week high after quarterly results beat expectations, with EPS of $3.26 versus $2.98 forecast and revenue of $6.75 billion versus $6.19 billion expected.
• Revenue grew 17.7% year over year, supported by broad-based demand and enterprise AI adoption.
• The board raised its quarterly dividend to $0.68 per share, about 8% above last year’s payout, though margin compression and rising expenses could pressure profitability.

CDW Corporation (NASDAQ:CDW - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $166.24 and last traded at $166.6310, with a volume of 953,382 shares. The stock had previously closed at $149.77.

The information technology services provider reported $3.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.98 by $0.28. CDW had a net margin of 4.60% and a return on equity of 50.61%. The company had revenue of $6.75 billion during the quarter, compared to the consensus estimate of $6.19 billion. During the same period in the previous year, the firm posted $2.71 earnings per share. The firm's quarterly revenue was up 17.7% on a year-over-year basis.

Key Headlines Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported adjusted earnings of $3.26 per share, ahead of the $2.98 consensus, while revenue rose 17.7% year over year to $6.754 billion, also topping estimates. Strong enterprise AI adoption and broad-based demand helped drive the results. Article: CDW Stock Jumps as AI Infrastructure Demand Drives Q3 Beat
• Positive Sentiment: The board declared a quarterly dividend of $0.68 per share, about 8% higher than last year, signaling increased cash returns to shareholders. Article: CDW Declares Quarterly Cash Dividend
• Negative Sentiment: Margin compression and rising expenses temper the otherwise strong results and could weigh on profitability if cost pressures persist. Article: CDW Q3 Earnings Beat Despite Margin Compression

Wall Street Analysts Forecast Growth

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

Insider Activity at CDW

In other CDW news, insider Elizabeth Connelly sold 26,695 shares of the company's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the completion of the transaction, the insider owned 34,215 shares of the company's stock, valued at $4,708,668.30. This represents a 43.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 0.82% of the company's stock.

Institutional Trading of CDW

Several institutional investors and hedge funds have recently modified their holdings of CDW. Entrust Financial LLC raised its position in CDW by 198.8% in the 3rd quarter. Entrust Financial LLC now owns 484 shares of the information technology services provider's stock valued at $62,000 after purchasing an additional 322 shares during the last quarter. Avion Wealth boosted its position in CDW by 3,263.6% during the 3rd quarter. Avion Wealth now owns 370 shares of the information technology services provider's stock worth $47,000 after purchasing an additional 359 shares during the period. Hohimer Wealth Management LLC boosted its holdings in CDW by 199.7% in the third quarter. Hohimer Wealth Management LLC now owns 126,782 shares of the information technology services provider's stock valued at $16,248,000 after purchasing an additional 84,480 shares during the last quarter. Brighton Jones LLC raised its stake in CDW by 710.7% during the third quarter. Brighton Jones LLC now owns 23,429 shares of the information technology services provider's stock worth $3,003,000 after acquiring an additional 20,539 shares during the period. Finally, Ethic Inc. grew its position in CDW by 1,016.8% in the 3rd quarter. Ethic Inc. now owns 63,659 shares of the information technology services provider's stock valued at $8,159,000 after buying an additional 57,959 shares in the last quarter. 93.15% of the stock is currently owned by institutional investors.

CDW Trading Up 11.2%

The company has a fifty day simple moving average of $147.70 and a 200-day simple moving average of $133.29. 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 market cap of $20.82 billion, a price-to-earnings ratio of 20.05, a P/E/G ratio of 1.97 and a beta of 0.92.

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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