CDW (NASDAQ:CDW) Shares Down 11.3% - Time to Sell?

Key Points

• CDW shares fell 11.3% to approximately $146.52, near the 50-day moving average, while trading volume was 77% below its average.
• Analysts remain moderately bullish, with a consensus “Moderate Buy” rating and an average price target of $150.12, though recent targets have been mixed.
• Fundamentals were strong in the latest quarter: CDW beat earnings and revenue estimates, with revenue up 10% year over year, and continues to pay a quarterly dividend of $0.63 per share.

CDW Corporation (NASDAQ:CDW - Get Free Report) shares dropped 11.3% on Friday. The stock traded as low as $148.64 and last traded at $146.5220. Approximately 419,918 shares traded hands during trading, a decline of 77% from the average daily volume of 1,808,621 shares. The stock had previously closed at $165.20.

Wall Street Analysts Forecast Growth

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

CDW Trading Down 10.7%

The business's 50-day simple moving average is $146.68 and its two-hundred day simple moving average is $133.02. 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 company has a market capitalization of $18.43 billion, a PE ratio of 17.67, a PEG ratio of 2.13 and a beta of 0.95.

CDW (NASDAQ:CDW - Get Free Report) last posted its quarterly earnings data 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 net margin of 4.60% and a return on equity of 50.61%. The firm had revenue of $6.57 billion for the quarter, compared to the consensus estimate of $6.21 billion. During the same period in the prior year, the firm posted $2.60 EPS. The firm's revenue was up 10.0% compared to the same quarter last year. On average, analysts predict that CDW Corporation will post 10.33 earnings per share for the current year.

CDW Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Tuesday, August 25th were paid a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend was Tuesday, August 25th. CDW's payout ratio is presently 30.29%.

Insider Activity at CDW

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

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CDW. Union Savings Bank boosted its stake in shares of CDW by 500.0% during the 3rd quarter. Union Savings Bank now owns 192 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 160 shares in the last quarter. Manchester Capital Management LLC grew its stake in CDW by 10,200.0% in the 3rd quarter. Manchester Capital Management LLC now owns 206 shares of the information technology services provider's stock valued at $26,000 after buying an additional 204 shares during the last quarter. Hollencrest Capital Management raised its holdings in CDW by 909.1% in the 1st quarter. Hollencrest Capital Management now owns 222 shares of the information technology services provider's stock worth $27,000 after acquiring an additional 200 shares during the period. Allied Private Wealth LLC acquired a new stake in shares of CDW in the second quarter valued at about $28,000. Finally, Keating Financial Advisory Services Inc. acquired a new position in shares of CDW during the 2nd quarter worth about $28,000. Institutional investors and hedge funds own 93.15% of the company's stock.

CDW Company Profile

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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