CDW (NASDAQ:CDW) Shares Gap Up Following Earnings Beat

CDW Co. (NASDAQ:CDW) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $199.34, but opened at $222.91. CDW shares last traded at $212.30, with a volume of 545,872 shares trading hands.

The information technology services provider reported $2.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.33 by $0.07. CDW had a return on equity of 58.31% and a net margin of 5.33%.

CDW Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 25th will be paid a $0.625 dividend. This represents a $2.50 dividend on an annualized basis and a yield of 1.21%. CDW’s payout ratio is 30.56%.

CDW declared that its Board of Directors has approved a stock buyback program on Wednesday, February 5th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the information technology services provider to purchase up to 2.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CDW. Morgan Stanley lifted their target price on shares of CDW from $190.00 to $193.00 and gave the company an “equal weight” rating in a research note on Monday, December 16th. Redburn Atlantic started coverage on CDW in a report on Friday, November 15th. They set a “buy” rating and a $230.00 target price on the stock. Barclays lowered their target price on CDW from $229.00 to $201.00 and set an “equal weight” rating for the company in a research note on Thursday, October 31st. UBS Group reduced their price target on CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research note on Tuesday, January 7th. Finally, JPMorgan Chase & Co. lowered CDW from an “overweight” rating to a “neutral” rating and lowered their price objective for the company from $260.00 to $235.00 in a research report on Monday, October 28th. Four research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, CDW currently has an average rating of “Moderate Buy” and a consensus target price of $239.33.

Hedge Funds Weigh In On CDW

Several hedge funds and other institutional investors have recently bought and sold shares of CDW. Canoe Financial LP purchased a new position in shares of CDW during the third quarter valued at approximately $37,000. Fortitude Family Office LLC grew 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 worth $39,000 after purchasing an additional 133 shares during the period. Allworth Financial LP raised 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 valued at $32,000 after buying an additional 52 shares during the last quarter. Ashton Thomas Securities LLC bought a new position in shares of CDW during the 3rd quarter valued at $43,000. Finally, Parkside Financial Bank & Trust boosted its stake in shares of CDW by 38.9% in the 4th 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 last quarter. Institutional investors own 93.15% of the company’s stock.

CDW Trading Up 3.4 %

The stock has a market capitalization of $27.47 billion, a PE ratio of 25.20, a P/E/G ratio of 5.39 and a beta of 1.01. The company has a current ratio of 1.40, a quick ratio of 1.28 and a debt-to-equity ratio of 2.39. The stock has a 50 day moving average price of $183.08 and a 200-day moving average price of $202.65.

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.