Citigroup Forecasts Strong Price Appreciation for CDW (NASDAQ:CDW) Stock

CDW (NASDAQ:CDW) had its target price hoisted by equities research analysts at Citigroup from $160.00 to $180.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has a “neutral” rating on the information technology services provider’s stock. Citigroup’s price objective would indicate a potential upside of 0.59% from the company’s current price.

A number of other research firms also recently weighed in on CDW. Morgan Stanley upped their target price on shares of CDW from $193.00 to $201.00 and gave the stock an “equal weight” rating in a research report on Thursday, February 6th. Barclays decreased their target price on shares of CDW from $223.00 to $205.00 and set an “equal weight” rating for the company in a research note on Thursday. Finally, JPMorgan Chase & Co. dropped their price target on CDW from $222.00 to $175.00 and set a “neutral” rating on the stock in a research report on Thursday, April 17th. Four analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, CDW currently has a consensus rating of “Moderate Buy” and a consensus price target of $216.38.

CDW Price Performance

CDW stock opened at $178.94 on Thursday. The firm has a 50-day moving average of $161.13 and a 200 day moving average of $177.70. The company has a debt-to-equity ratio of 2.38, a current ratio of 1.35 and a quick ratio of 1.24. The company has a market cap of $23.58 billion, a P/E ratio of 22.45, a PEG ratio of 3.21 and a beta of 0.91. CDW has a 1 year low of $137.31 and a 1 year high of $241.26.

CDW (NASDAQ:CDW) last released its earnings results on Wednesday, May 7th. The information technology services provider reported $2.15 EPS for the quarter, beating analysts’ consensus estimates of $1.96 by $0.19. The company had revenue of $5.20 billion during the quarter, compared to analysts’ expectations of $4.93 billion. CDW had a return on equity of 55.42% and a net margin of 5.13%. The firm’s revenue for the quarter was up 6.7% compared to the same quarter last year. During the same quarter last year, the business posted $1.92 EPS. On average, sell-side analysts forecast that CDW will post 9.41 EPS for the current year.

CDW announced that its Board of Directors has approved a stock repurchase plan on Wednesday, February 5th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the information technology services provider to repurchase up to 2.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Christine A. Leahy sold 40,917 shares of CDW stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $181.42, for a total value of $7,423,162.14. Following the completion of the sale, the insider now directly owns 144,931 shares in the company, valued at approximately $26,293,382.02. This trade represents a 22.02 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.90% of the company’s stock.

Institutional Trading of CDW

Institutional investors have recently made changes to their positions in the stock. D. E. Shaw & Co. Inc. raised its holdings in shares of CDW by 906.9% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 2,024,887 shares of the information technology services provider’s stock valued at $352,411,000 after purchasing an additional 1,823,788 shares during the last quarter. Alyeska Investment Group L.P. raised its stake in CDW by 17,349.6% during the 4th quarter. Alyeska Investment Group L.P. now owns 1,380,787 shares of the information technology services provider’s stock valued at $240,312,000 after buying an additional 1,372,874 shares during the last quarter. Norges Bank bought a new position in shares of CDW during the 4th quarter valued at $144,826,000. Madison Investment Advisors LLC purchased a new position in shares of CDW in the 4th quarter worth $130,996,000. Finally, Proficio Capital Partners LLC grew its holdings in shares of CDW by 18,259.3% in the fourth quarter. Proficio Capital Partners LLC now owns 687,189 shares of the information technology services provider’s stock worth $119,598,000 after acquiring an additional 683,446 shares during the period. Hedge funds and other 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.