CDW Co. (NASDAQ:CDW) Given Average Rating of “Moderate Buy” by Analysts

Shares of CDW Co. (NASDAQ:CDW) have received a consensus recommendation of “Moderate Buy” from the eight analysts that are covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $216.38.

A number of analysts have recently weighed in on CDW shares. Barclays lowered their price objective on CDW from $223.00 to $205.00 and set an “equal weight” rating for the company in a research report on Thursday, May 8th. UBS Group lowered their price target on CDW from $236.00 to $210.00 and set a “buy” rating for the company in a report on Thursday, May 8th. Citigroup upped their price objective on shares of CDW from $160.00 to $180.00 and gave the company a “neutral” rating in a report on Thursday, May 8th. Morgan Stanley increased their price objective on shares of CDW from $193.00 to $201.00 and gave the company an “equal weight” rating in a research report on Thursday, February 6th. Finally, JPMorgan Chase & Co. lowered their target price on shares of CDW from $222.00 to $175.00 and set a “neutral” rating for the company in a research note on Thursday, April 17th.

CDW Stock Performance

Shares of CDW stock opened at $188.43 on Friday. The company has a market capitalization of $24.81 billion, a PE ratio of 23.64, a P/E/G ratio of 3.21 and a beta of 0.91. The company has a 50-day simple moving average of $162.72 and a two-hundred day simple moving average of $176.90. CDW has a one year low of $137.31 and a one year high of $241.26. The company has a debt-to-equity ratio of 2.38, a quick ratio of 1.24 and a current ratio of 1.35.

CDW (NASDAQ:CDW) last announced its earnings results on Wednesday, May 7th. The information technology services provider reported $2.15 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.19. CDW had a net margin of 5.13% and a return on equity of 55.42%. The company had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $4.93 billion. During the same period last year, the firm earned $1.92 earnings per share. CDW’s revenue was up 6.7% compared to the same quarter last year. Research analysts expect that CDW will post 9.41 EPS for the current fiscal year.

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

CDW Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 10th. Investors of record on Monday, May 26th will be issued a dividend of $0.625 per share. This represents a $2.50 dividend on an annualized basis and a dividend yield of 1.33%. The ex-dividend date of this dividend is Friday, May 23rd. CDW’s dividend payout ratio (DPR) is 30.98%.

Insider Buying and Selling

In other CDW 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 transaction of $7,423,162.14. Following the completion of the transaction, the insider now 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 SEC, which is accessible through this link. Also, insider Frederick J. Kulevich sold 28,159 shares of the company’s stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $190.90, for a total value of $5,375,553.10. Following the completion of the sale, the insider now owns 36,077 shares in the company, valued at $6,887,099.30. The trade was a 43.84% decrease in their position. The disclosure for this sale can be found here. 0.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On CDW

Several large investors have recently made changes to their positions in CDW. Vanguard Group Inc. grew its position in CDW by 0.4% during the first quarter. Vanguard Group Inc. now owns 16,746,334 shares of the information technology services provider’s stock valued at $2,683,767,000 after buying an additional 72,550 shares during the period. Geode Capital Management LLC grew its position in shares of CDW by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 3,535,405 shares of the information technology services provider’s stock valued at $614,220,000 after acquiring an additional 54,341 shares during the period. Massachusetts Financial Services Co. MA increased its stake in shares of CDW by 15.7% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 2,792,934 shares of the information technology services provider’s stock valued at $447,596,000 after purchasing an additional 378,841 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of CDW by 29.2% in the 4th quarter. Wellington Management Group LLP now owns 2,538,775 shares of the information technology services provider’s stock valued at $441,848,000 after purchasing an additional 574,444 shares in the last quarter. Finally, Invesco Ltd. raised its holdings in CDW by 1.9% in the 1st quarter. Invesco Ltd. now owns 2,471,963 shares of the information technology services provider’s stock worth $396,157,000 after purchasing an additional 45,217 shares during the period. 93.15% of the stock is currently owned by institutional investors and hedge funds.

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.