CDW Co. (NASDAQ:CDW) Receives Average Recommendation of “Moderate Buy” from Analysts

CDW Co. (NASDAQ:CDW) has received an average recommendation of “Moderate Buy” from the nine research firms that are currently covering the firm, MarketBeat reports. Four equities research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $242.67.

Several analysts have recently commented on CDW shares. JPMorgan Chase & Co. cut CDW from an “overweight” rating to a “neutral” rating and decreased their target price for the stock from $260.00 to $235.00 in a report on Monday, October 28th. Redburn Atlantic assumed coverage on shares of CDW in a report on Friday, November 15th. They set a “buy” rating and a $230.00 price objective on the stock. Morgan Stanley boosted their target price on shares of CDW from $193.00 to $201.00 and gave the stock an “equal weight” rating in a research note on Thursday. UBS Group decreased their price target on shares of CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research note on Tuesday, January 7th. Finally, Barclays boosted their price objective on shares of CDW from $201.00 to $223.00 and gave the stock an “equal weight” rating in a research report on Thursday.

CDW Price Performance

NASDAQ:CDW opened at $192.02 on Wednesday. The company has a quick ratio of 1.28, a current ratio of 1.35 and a debt-to-equity ratio of 2.38. The firm has a market cap of $25.59 billion, a PE ratio of 24.09, a price-to-earnings-growth ratio of 5.40 and a beta of 1.01. CDW has a 12 month low of $168.43 and a 12 month high of $263.37. The company’s 50-day moving average price is $183.86 and its two-hundred day moving average price is $201.96.

CDW (NASDAQ:CDW) last announced its earnings results on Wednesday, February 5th. The information technology services provider reported $2.40 EPS for the quarter, topping the consensus estimate of $2.33 by $0.07. CDW had a return on equity of 55.42% and a net margin of 5.13%. On average, equities analysts anticipate that CDW will post 9.35 EPS for the current fiscal year.

CDW Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 25th will be paid a $0.625 dividend. This represents a $2.50 annualized dividend and a yield of 1.30%. The ex-dividend date is Tuesday, February 25th. CDW’s payout ratio is 31.37%.

CDW announced that its Board of Directors has authorized a share repurchase 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 purchase up to 2.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CDW. Allworth Financial LP increased its stake in CDW by 39.7% during the 4th quarter. Allworth Financial LP now owns 183 shares of the information technology services provider’s stock worth $32,000 after purchasing an additional 52 shares in the last quarter. OFI Invest Asset Management bought a new stake in shares of CDW during the fourth quarter worth $32,000. Parkside Financial Bank & Trust raised its holdings in shares of 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 acquiring an additional 58 shares during the period. Canoe Financial LP acquired a new stake in shares of CDW during the third quarter worth $37,000. Finally, Fortitude Family Office LLC lifted its position in CDW by 350.0% in the 3rd quarter. Fortitude Family Office LLC now owns 171 shares of the information technology services provider’s stock valued at $39,000 after acquiring an additional 133 shares in the last quarter. 93.15% of the stock is currently owned by institutional investors.

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.