CDW (NASDAQ:CDW) Sets New 52-Week High - Time to Buy?

Key Points

• CDW hit a new 52-week high, trading at about $173.65, up from its previous close of $169.36.
• Quarterly results beat expectations: earnings were $3.26 per share versus a $2.98 estimate, and revenue reached $6.75 billion, up 17.7% year over year.
• CDW raised its quarterly dividend from $0.63 to $0.68 per share. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $167.38—below the stock’s trading price.

CDW Corporation (NASDAQ:CDW - Get Free Report)'s share price reached a new 52-week high during trading on Wednesday. The stock traded as high as $173.47 and last traded at $173.6480, with a volume of 61,787 shares. The stock had previously closed at $169.36.

Analysts Set New Price Targets

CDW has been the topic of a number of research analyst reports. Citigroup boosted their target price on CDW from $150.00 to $170.00 and gave the stock a "neutral" rating in a research note on Thursday, November 5th. UBS Group increased their price target on CDW from $159.00 to $195.00 and gave the company a "buy" rating in a research report on Thursday, November 5th. Weiss Ratings upgraded CDW from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 25th. Morgan Stanley boosted their price objective on CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Finally, JPMorgan Chase & Co. upped their price objective on CDW from $170.00 to $195.00 and gave the company an "overweight" rating in a research note on Thursday, November 5th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, CDW presently has an average rating of "Moderate Buy" and a consensus target price of $167.38.

CDW Price Performance

The company has a current ratio of 1.26, a quick ratio of 1.15 and a debt-to-equity ratio of 2.32. The business's fifty day moving average is $149.42 and its 200 day moving average is $134.15. The company has a market cap of $21.61 billion, a P/E ratio of 20.15, a PEG ratio of 1.46 and a beta of 0.92.

CDW (NASDAQ:CDW - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The information technology services provider reported $3.26 earnings per share for the quarter, beating the consensus estimate of $2.98 by $0.28. The business had revenue of $6.75 billion during the quarter, compared to analyst estimates of $6.19 billion. CDW had a return on equity of 52.23% and a net margin of 4.48%. CDW's revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the company earned $2.71 earnings per share. As a group, sell-side analysts anticipate that CDW Corporation will post 10.33 EPS for the current year.

CDW Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Wednesday, November 25th will be issued a $0.68 dividend. This is an increase from CDW's previous quarterly dividend of $0.63. The ex-dividend date of this dividend is Wednesday, November 25th. This represents a $2.72 annualized dividend and a yield of 1.6%. CDW's payout ratio is 29.40%.

Institutional Investors Weigh In On CDW

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in CDW during the second quarter worth about $2,143,082,000. Boston Partners raised its position in shares of CDW by 8.1% in the third quarter. Boston Partners now owns 5,680,330 shares of the information technology services provider's stock valued at $728,186,000 after purchasing an additional 423,520 shares during the period. Pzena Investment Management LLC raised its position in shares of CDW by 27.1% in the third quarter. Pzena Investment Management LLC now owns 3,353,465 shares of the information technology services provider's stock valued at $429,780,000 after purchasing an additional 714,565 shares during the period. Jupiter Topco LLC purchased a new stake in shares of CDW during the 2nd quarter valued at approximately $300,073,000. Finally, Alyeska Investment Group L.P. lifted its stake in shares of CDW by 197.1% during the 2nd quarter. Alyeska Investment Group L.P. now owns 1,854,952 shares of the information technology services provider's stock valued at $260,880,000 after buying an additional 1,230,517 shares in the last quarter. 93.15% of the stock is currently owned by institutional investors.

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.

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