CDW (NASDAQ:CDW) Stock Jumps 7.8% - Should You Buy?

Key Points

• CDW shares rose 7.8% to about $138.18, while trading volume was roughly half the stock’s average daily level.
• Analysts maintain a generally positive outlook: CDW has a consensus “Moderate Buy” rating and an average price target of $150.12, despite mixed target revisions from major brokerages.
• The company exceeded quarterly expectations, reporting $2.91 in adjusted EPS and $6.57 billion in revenue, with revenue up 10% year over year. CDW also pays a quarterly dividend of $0.63, equivalent to a 1.8% annual yield.

CDW Corporation (NASDAQ:CDW - Get Free Report) traded up 7.8% on Thursday. The stock traded as high as $137.57 and last traded at $138.1790. Approximately 919,399 shares traded hands during trading, a decline of 50% from the average daily volume of 1,851,018 shares. The stock had previously closed at $128.16.

Analyst Ratings Changes

Several brokerages recently commented on CDW. Citigroup lifted their price target 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 upgraded CDW from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 25th. Barclays decreased their price objective 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 increased their price target on shares of CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, CDW presently has a consensus rating of "Moderate Buy" and a consensus price target of $150.12.

CDW Stock Performance

The stock's fifty day simple moving average is $142.69 and its 200-day simple moving average is $131.93. The company has a quick ratio of 1.05, a current ratio of 1.17 and a debt-to-equity ratio of 1.97. The company has a market capitalization of $17.27 billion, a PE ratio of 16.60, a PEG ratio of 1.70 and a beta of 0.95.

CDW (NASDAQ:CDW - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share 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 analysts' expectations of $6.21 billion. During the same quarter in the prior year, the firm posted $2.60 EPS. The company's revenue was up 10.0% compared to the same quarter last year. On average, research analysts predict that CDW Corporation will post 10.33 earnings per share for the current fiscal year.

CDW Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th were given a $0.63 dividend. The ex-dividend date was Tuesday, August 25th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.8%. CDW's dividend payout ratio (DPR) is currently 30.29%.

Insider Activity

In related news, insider Elizabeth Connelly sold 26,695 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $137.62, for a total value of $3,673,765.90. Following the sale, the insider directly owned 34,215 shares in the company, valued at $4,708,668.30. The trade was a 43.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.82% of the stock is owned by company insiders.

Institutional Trading of CDW

Several institutional investors and hedge funds have recently modified their holdings of CDW. Envestnet Portfolio Solutions Inc. lifted its position in shares of CDW by 28.7% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 2,417 shares of the information technology services provider's stock valued at $340,000 after acquiring an additional 539 shares in the last quarter. Sequoia Financial Advisors LLC lifted its holdings in CDW by 33.5% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 3,543 shares of the information technology services provider's stock valued at $498,000 after purchasing an additional 889 shares in the last quarter. Tidal Investments LLC boosted its stake in shares of CDW by 82.5% during the 2nd quarter. Tidal Investments LLC now owns 46,504 shares of the information technology services provider's stock worth $6,540,000 after purchasing an additional 21,019 shares during the last quarter. WINTON GROUP Ltd grew its holdings in shares of CDW by 1,136.8% during the second quarter. WINTON GROUP Ltd now owns 46,502 shares of the information technology services provider's stock worth $6,540,000 after buying an additional 42,742 shares in the last quarter. Finally, Triad Investment Management raised its position in shares of CDW by 20.3% in the second quarter. Triad Investment Management now owns 30,540 shares of the information technology services provider's stock valued at $4,295,000 after buying an additional 5,156 shares during the last quarter. Hedge funds and other institutional investors own 93.15% of the company's stock.

CDW Company Profile

CDW Corporation NASDAQ: CDW is a provider of technology products and services for businesses, government agencies, educational institutions and healthcare organizations. The company helps customers plan, acquire, implement and manage information technology through a broad portfolio of hardware, software and cloud-based solutions.

Its offerings include computers, servers, networking equipment, data storage, cybersecurity products, collaboration tools and software. CDW also provides professional and managed services, including cloud adoption, data center modernization, security, virtualization, configuration, technical support and lifecycle management.

Founded in 1984 as Computer Discount Warehouse, the company is headquartered in Vernon Hills, Illinois.

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