CDW Target of Unusually Large Options Trading (NASDAQ:CDW)

CDW Co. (NASDAQ:CDW) was the recipient of unusually large options trading on Wednesday. Traders acquired 2,078 call options on the stock. This represents an increase of 448% compared to the typical volume of 379 call options.

Wall Street Analysts Forecast Growth

CDW has been the subject of several analyst reports. Evercore ISI boosted their target price on CDW from $250.00 to $300.00 and gave the stock an “outperform” rating in a report on Friday, March 22nd. Barclays boosted their target price on CDW from $219.00 to $261.00 and gave the stock an “equal weight” rating in a report on Thursday, February 8th. JPMorgan Chase & Co. boosted their target price on CDW from $267.00 to $280.00 and gave the stock an “overweight” rating in a report on Thursday, April 11th. Finally, Citigroup boosted their target price on CDW from $255.00 to $295.00 and gave the stock a “buy” rating in a report on Thursday, April 4th. Three investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, CDW has an average rating of “Moderate Buy” and a consensus target price of $242.67.

Institutional Trading of CDW

A number of large investors have recently bought and sold shares of the stock. Aaron Wealth Advisors LLC grew its position in CDW by 2.8% in the first quarter. Aaron Wealth Advisors LLC now owns 1,540 shares of the information technology services provider’s stock valued at $394,000 after acquiring an additional 42 shares during the period. Massmutual Trust Co. FSB ADV increased its stake in shares of CDW by 5.9% in the first quarter. Massmutual Trust Co. FSB ADV now owns 767 shares of the information technology services provider’s stock valued at $196,000 after buying an additional 43 shares in the last quarter. Prestige Wealth Management Group LLC increased its stake in shares of CDW by 6.4% in the fourth quarter. Prestige Wealth Management Group LLC now owns 811 shares of the information technology services provider’s stock valued at $184,000 after buying an additional 49 shares in the last quarter. Scotia Capital Inc. increased its stake in shares of CDW by 1.5% in the third quarter. Scotia Capital Inc. now owns 3,495 shares of the information technology services provider’s stock valued at $705,000 after buying an additional 50 shares in the last quarter. Finally, Checchi Capital Advisers LLC increased its stake in shares of CDW by 3.4% in the fourth quarter. Checchi Capital Advisers LLC now owns 1,502 shares of the information technology services provider’s stock valued at $341,000 after buying an additional 50 shares in the last quarter. 93.15% of the stock is currently owned by institutional investors.

CDW Stock Performance

CDW opened at $214.61 on Thursday. The stock has a market cap of $28.84 billion, a PE ratio of 26.50, a P/E/G ratio of 2.78 and a beta of 1.09. The company has a current ratio of 1.23, a quick ratio of 1.11 and a debt-to-equity ratio of 2.46. CDW has a 1 year low of $162.59 and a 1 year high of $263.37. The stock’s 50 day simple moving average is $246.81 and its 200-day simple moving average is $229.16.

CDW (NASDAQ:CDW) last announced its quarterly earnings results on Wednesday, February 7th. The information technology services provider reported $2.57 earnings per share for the quarter, beating analysts’ consensus estimates of $2.56 by $0.01. CDW had a return on equity of 73.93% and a net margin of 5.17%. The firm had revenue of $5.02 billion for the quarter, compared to analysts’ expectations of $5.32 billion. During the same period in the prior year, the business posted $2.40 earnings per share. The business’s revenue was down 7.7% compared to the same quarter last year. Sell-side analysts forecast that CDW will post 9.89 EPS for the current year.

CDW announced that its Board of Directors has authorized a share repurchase plan on Wednesday, February 7th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to repurchase up to 2.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

CDW Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 11th. Shareholders of record on Friday, May 24th will be given a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a yield of 1.16%. CDW’s dividend payout ratio (DPR) is 30.62%.

About CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.