CDW Co. (NASDAQ:CDW) Short Interest Up 24.0% in February

CDW Co. (NASDAQ:CDW) was the recipient of a significant increase in short interest in February. As of February 28th, there was short interest totalling 3,460,000 shares, an increase of 24.0% from the February 13th total of 2,790,000 shares. Based on an average trading volume of 1,330,000 shares, the days-to-cover ratio is presently 2.6 days. Currently, 2.6% of the company’s stock are short sold.

Institutional Trading of CDW

Several hedge funds have recently modified their holdings of CDW. Allworth Financial LP raised its position in CDW by 39.7% in the fourth quarter. Allworth Financial LP now owns 183 shares of the information technology services provider’s stock worth $32,000 after acquiring an additional 52 shares in the last quarter. Summit Trail Advisors LLC lifted its stake in shares of CDW by 1.4% in the fourth quarter. Summit Trail Advisors LLC now owns 4,040 shares of the information technology services provider’s stock valued at $703,000 after purchasing an additional 56 shares during the period. OneAscent Wealth Management LLC lifted its stake in shares of CDW by 2.5% in the third quarter. OneAscent Wealth Management LLC now owns 2,387 shares of the information technology services provider’s stock valued at $540,000 after purchasing an additional 58 shares during the period. Parkside Financial Bank & Trust grew its position in CDW by 38.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 207 shares of the information technology services provider’s stock worth $36,000 after buying an additional 58 shares during the period. Finally, Fulcrum Equity Management lifted its position in shares of CDW by 4.3% during the 3rd quarter. Fulcrum Equity Management now owns 1,442 shares of the information technology services provider’s stock valued at $326,000 after acquiring an additional 60 shares during the period. 93.15% of the stock is owned by institutional investors and hedge funds.

CDW Stock Performance

Shares of CDW stock traded down $0.45 during midday trading on Tuesday, hitting $170.19. The company had a trading volume of 258,686 shares, compared to its average volume of 1,024,886. CDW has a 52-week low of $162.84 and a 52-week high of $263.37. 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’s 50 day simple moving average is $185.39 and its 200 day simple moving average is $194.50. The stock has a market cap of $22.55 billion, a price-to-earnings ratio of 21.37, a PEG ratio of 3.21 and a beta of 1.01.

CDW (NASDAQ:CDW) last announced its quarterly earnings data on Wednesday, February 5th. The information technology services provider reported $2.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.33 by $0.07. CDW had a net margin of 5.13% and a return on equity of 55.42%. Research analysts anticipate that CDW will post 9.41 earnings per share for the current fiscal year.

CDW Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 11th. Investors of record on Tuesday, February 25th were given a $0.625 dividend. The ex-dividend date of this dividend was Tuesday, February 25th. This represents a $2.50 dividend on an annualized basis and a yield of 1.47%. CDW’s payout ratio is currently 31.37%.

CDW declared that its board has initiated a stock buyback program 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 reacquire up to 2.7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have commented on CDW. Barclays increased their price objective on shares of CDW from $201.00 to $223.00 and gave the company an “equal weight” rating in a research report on Thursday, February 6th. Morgan Stanley raised their price target on CDW from $193.00 to $201.00 and gave the company an “equal weight” rating in a research note on Thursday, February 6th. Finally, UBS Group lowered their price objective on CDW from $233.00 to $220.00 and set a “buy” rating for the company in a research report on Tuesday, January 7th. Four research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, CDW currently has an average rating of “Moderate Buy” and a consensus price target of $242.67.

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.