Citigroup Cuts CDW (NASDAQ:CDW) Price Target to $260.00

CDW (NASDAQ:CDW) had its price target trimmed by Citigroup from $295.00 to $260.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a buy rating on the information technology services provider’s stock.

Other equities research analysts have also issued reports about the company. Barclays lowered their price target on CDW from $261.00 to $232.00 and set an equal weight rating for the company in a research report on Thursday. Evercore ISI increased their price target on CDW from $250.00 to $300.00 and gave the company an outperform rating in a research report on Friday, March 22nd. JPMorgan Chase & Co. lowered their price target on CDW from $280.00 to $265.00 and set an overweight rating for the company in a research report on Thursday. Finally, Stifel Nicolaus lowered their price target on CDW from $265.00 to $250.00 and set a buy rating for the company in a research report on Thursday. Three analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat, the stock has a consensus rating of Moderate Buy and an average target price of $247.50.

CDW Price Performance

Shares of NASDAQ:CDW opened at $219.56 on Thursday. The company has a quick ratio of 1.11, a current ratio of 1.26 and a debt-to-equity ratio of 2.35. CDW has a twelve month low of $162.59 and a twelve month high of $263.37. The stock’s 50 day moving average is $245.67 and its 200-day moving average is $229.47. The firm has a market capitalization of $29.51 billion, a price-to-earnings ratio of 27.41, a PEG ratio of 2.49 and a beta of 1.09.

CDW (NASDAQ:CDW) last issued its earnings results on Wednesday, February 7th. The information technology services provider reported $2.57 earnings per share for the quarter, topping analysts’ consensus estimates of $2.56 by $0.01. The company had revenue of $5.02 billion for the quarter, compared to analyst estimates of $5.32 billion. CDW had a return on equity of 67.56% and a net margin of 5.16%. CDW’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same period in the prior year, the firm earned $2.40 earnings per share. Sell-side analysts forecast that CDW will post 9.89 EPS for the current fiscal year.

CDW Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 11th. Stockholders of record on Friday, May 24th will be given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 1.13%. The ex-dividend date is Thursday, May 23rd. CDW’s dividend payout ratio is presently 30.96%.

CDW declared that its board has authorized a stock repurchase program on Wednesday, February 7th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the information technology services provider to reacquire up to 2.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Wellington Management Group LLP boosted its stake in CDW by 29.1% in the 4th quarter. Wellington Management Group LLP now owns 3,464,886 shares of the information technology services provider’s stock worth $787,638,000 after purchasing an additional 781,421 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of CDW by 4.9% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,380,123 shares of the information technology services provider’s stock valued at $299,901,000 after acquiring an additional 64,140 shares during the last quarter. Northern Trust Corp boosted its position in shares of CDW by 1.6% during the 3rd quarter. Northern Trust Corp now owns 1,331,127 shares of the information technology services provider’s stock valued at $268,568,000 after acquiring an additional 20,345 shares during the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its position in shares of CDW by 3.3% during the 3rd quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 1,315,983 shares of the information technology services provider’s stock valued at $265,513,000 after acquiring an additional 41,472 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of CDW by 3.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,135,792 shares of the information technology services provider’s stock valued at $258,196,000 after acquiring an additional 33,235 shares during the last quarter. Institutional investors own 93.15% of the company’s stock.

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.