CDW (NASDAQ:CDW) Trading Up 7.2% - Time to Buy?

Key Points

• CDW shares rose 7.2% to about $152.81, above the analyst consensus target of $150.38. Analysts collectively rate the stock a “Moderate Buy,” with one Strong Buy, five Buy, and three Hold ratings.
• CDW reported stronger-than-expected quarterly results, with EPS of $2.91 versus the $2.80 consensus and revenue of $6.57 billion, up 10% year over year. Analysts expect full-year EPS of approximately $10.33.
• The company pays a quarterly dividend of $0.63, equivalent to a 1.7% yield, while institutional investors own 93.15% of outstanding shares. An insider recently sold 26,695 shares, reducing their direct ownership by 43.83%.

CDW Corporation (NASDAQ:CDW - Get Free Report) shares rose 7.2% during trading on Friday . The company traded as high as $149.05 and last traded at $152.8140. 121,735 shares traded hands during trading, a decline of 94% from the average session volume of 1,874,499 shares. The stock had previously closed at $142.60.

Analyst Ratings Changes

A number of research firms recently commented on CDW. Barclays increased their price target on CDW from $123.00 to $150.00 and gave the company an "equal weight" rating in a research report on Tuesday. Weiss Ratings upgraded shares of CDW from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 25th. JPMorgan Chase & Co. upgraded shares of CDW from a "neutral" rating to an "overweight" rating and set a $130.00 target price for the company in a report on Wednesday, May 27th. Morgan Stanley boosted their price target on shares of CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Finally, Citigroup upped their price objective on shares of CDW from $123.00 to $145.00 and gave the stock a "neutral" rating in a research report on Monday, July 13th. One 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 data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $150.38.

CDW Stock Performance

The company's 50 day moving average price is $140.55 and its 200-day moving average price is $129.84. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.05 and a current ratio of 1.17. The company has a market cap of $18.82 billion, a PE ratio of 18.10, a price-to-earnings-growth ratio of 1.87 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 the consensus estimate 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 the consensus estimate of $6.21 billion. During the same quarter in the prior year, the business earned $2.60 earnings per share. CDW's revenue for the quarter was up 10.0% on a year-over-year basis. Equities research analysts anticipate that CDW Corporation will post 10.33 earnings per share for the current fiscal year.

CDW Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Tuesday, August 25th were issued a $0.63 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $2.52 annualized dividend and a yield of 1.7%. CDW's dividend payout ratio (DPR) is 30.29%.

Insider Transactions at CDW

In other CDW news, insider Elizabeth Connelly sold 26,695 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the sale, the insider directly owned 34,215 shares of the company's stock, valued at $4,708,668.30. This represents a 43.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.82% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. California State Teachers Retirement System raised its holdings in CDW by 13,221.2% during the 2nd quarter. California State Teachers Retirement System now owns 29,850,699 shares of the information technology services provider's stock valued at $4,198,202,000 after acquiring an additional 29,626,614 shares during the period. BlackRock Inc. purchased a new position in shares of CDW in the second quarter valued at $2,143,082,000. Pzena Investment Management LLC bought a new stake in shares of CDW during the 2nd quarter valued at $371,135,000. Jupiter Topco LLC purchased a new stake in CDW during the 2nd quarter worth about $300,073,000. Finally, Alyeska Investment Group L.P. lifted its holdings in 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 worth $260,880,000 after purchasing an additional 1,230,517 shares in the last quarter. 93.15% of the stock is owned by institutional investors.

About CDW

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 design, acquire, configure and manage information technology environments.

Its offerings include computers, servers, networking equipment, software, data storage, cybersecurity products, cloud solutions and collaboration tools. CDW also provides professional, managed and lifecycle services, including solution design, implementation, security support, cloud management and IT asset management.

Founded in 1984, CDW serves customers primarily in the United States, Canada and the United Kingdom through a combination of sales specialists, technology partners and digital commerce platforms.

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