CDW (NASDAQ:CDW) Shares Gap Down – What’s Next?

Shares of CDW Co. (NASDAQ:CDW) gapped down before the market opened on Wednesday . The stock had previously closed at $219.90, but opened at $200.21. CDW shares last traded at $203.47, with a volume of 198,719 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have recently commented on CDW. Stifel Nicolaus increased their target price on CDW from $250.00 to $260.00 and gave the stock a “buy” rating in a report on Wednesday, July 17th. Barclays dropped their price objective on shares of CDW from $229.00 to $201.00 and set an “equal weight” rating for the company in a research report on Thursday. Citigroup lowered CDW from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $250.00 to $245.00 in a research report on Tuesday, October 1st. Finally, JPMorgan Chase & Co. downgraded CDW from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $260.00 to $235.00 in a research report on Monday. Four research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat.com, CDW presently has an average rating of “Hold” and an average target price of $246.71.

CDW Stock Performance

The company has a current ratio of 1.13, a quick ratio of 1.02 and a debt-to-equity ratio of 2.03. The company has a market cap of $25.14 billion, a P/E ratio of 23.01, a price-to-earnings-growth ratio of 3.42 and a beta of 1.03. The company has a 50 day moving average price of $220.86 and a 200-day moving average price of $223.97.

CDW (NASDAQ:CDW) last released its quarterly earnings data on Wednesday, July 31st. The information technology services provider reported $2.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.39 by ($0.05). The firm had revenue of $5.42 billion during the quarter, compared to analyst estimates of $5.43 billion. CDW had a net margin of 5.29% and a return on equity of 62.22%. During the same period in the prior year, the company earned $2.43 EPS. The business’s quarterly revenue was down 3.6% compared to the same quarter last year. On average, equities analysts expect that CDW Co. will post 9.4 earnings per share for the current fiscal year.

CDW Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 10th. Shareholders of record on Monday, November 25th will be paid a $0.625 dividend. This is an increase from CDW’s previous quarterly dividend of $0.62. This represents a $2.50 annualized dividend and a yield of 1.33%. The ex-dividend date of this dividend is Monday, November 25th. CDW’s payout ratio is 30.56%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in CDW by 4.6% in the 1st quarter. Vanguard Group Inc. now owns 16,407,542 shares of the information technology services provider’s stock valued at $4,196,721,000 after buying an additional 714,393 shares in the last quarter. Mawer Investment Management Ltd. grew its holdings in shares of CDW by 0.9% during the 1st quarter. Mawer Investment Management Ltd. now owns 3,101,924 shares of the information technology services provider’s stock valued at $793,410,000 after purchasing an additional 27,753 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of CDW by 3.7% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,431,573 shares of the information technology services provider’s stock worth $366,168,000 after purchasing an additional 51,450 shares during the last quarter. Dimensional Fund Advisors LP increased its position in CDW by 11.0% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,292,674 shares of the information technology services provider’s stock valued at $289,357,000 after purchasing an additional 128,263 shares during the period. Finally, Lazard Asset Management LLC boosted its holdings in shares of CDW by 225.9% during the 1st quarter. Lazard Asset Management LLC now owns 881,586 shares of the information technology services provider’s stock valued at $225,491,000 after buying an additional 611,054 shares in the last quarter. 93.15% of the stock is currently owned by institutional investors and hedge funds.

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.