Brokerages Set CDW Co. (NASDAQ:CDW) Target Price at $247.50

Shares of CDW Co. (NASDAQ:CDW) have been assigned a consensus rating of “Moderate Buy” from the eight brokerages that are covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 12 month price target among analysts that have covered the stock in the last year is $247.50.

Several analysts have recently commented on CDW shares. JPMorgan Chase & Co. lowered their price objective on CDW from $280.00 to $265.00 and set an “overweight” rating for the company in a research note on Thursday, May 2nd. 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, May 2nd. Barclays reduced their target price on shares of CDW from $261.00 to $232.00 and set an “equal weight” rating for the company in a research note on Thursday, May 2nd. Citigroup dropped their price target on shares of CDW from $295.00 to $260.00 and set a “buy” rating on the stock in a research report on Thursday, May 2nd. Finally, Evercore ISI upped their price objective on shares of CDW from $250.00 to $300.00 and gave the stock an “outperform” rating in a research report on Friday, March 22nd.

CDW Stock Performance

NASDAQ CDW opened at $220.32 on Monday. The company has a current ratio of 1.26, a quick ratio of 1.13 and a debt-to-equity ratio of 2.35. The company has a fifty day simple moving average of $244.22 and a 200 day simple moving average of $229.68. CDW has a 12-month low of $164.62 and a 12-month high of $263.37. The company has a market cap of $29.61 billion, a P/E ratio of 27.51, a PEG ratio of 3.16 and a beta of 1.09.

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

CDW Announces Dividend

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

CDW declared that its Board of Directors has authorized a stock repurchase plan 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 purchase up to 2.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On CDW

Large investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP lifted its holdings in CDW by 29.1% during 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 in the last quarter. First Trust Advisors LP boosted its position in shares of CDW by 627.3% in the fourth quarter. First Trust Advisors LP now owns 625,781 shares of the information technology services provider’s stock valued at $142,252,000 after acquiring an additional 539,745 shares during the period. Norges Bank bought a new stake in CDW during the 4th quarter worth approximately $111,736,000. The Manufacturers Life Insurance Company lifted its stake in CDW by 91.8% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 728,446 shares of the information technology services provider’s stock worth $146,971,000 after purchasing an additional 348,749 shares in the last quarter. Finally, Lazard Asset Management LLC boosted its holdings in CDW by 459.5% in the 3rd quarter. Lazard Asset Management LLC now owns 252,272 shares of the information technology services provider’s stock valued at $50,898,000 after purchasing an additional 207,184 shares during the period. Hedge funds and other institutional investors own 93.15% of the company’s stock.

CDW Company Profile

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.