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

CDW Co. (NASDAQ:CDW)’s share price gapped up before the market opened 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 traded.

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

CDW Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 25th will be issued a $0.625 dividend. This represents a $2.50 annualized dividend and a dividend yield of 1.20%. CDW’s payout ratio is currently 30.56%.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on CDW. UBS Group lowered their price target on CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a report on Tuesday, January 7th. Morgan Stanley boosted their target price on CDW from $190.00 to $193.00 and gave the stock an “equal weight” rating in a research report on Monday, December 16th. 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, October 28th. Barclays dropped their target price on CDW from $229.00 to $201.00 and set an “equal weight” rating for the company in a research report on Thursday, October 31st. Finally, Redburn Atlantic initiated coverage on CDW in a research report on Friday, November 15th. They issued a “buy” rating and a $230.00 target price for the company. Four equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $239.33.

Hedge Funds Weigh In On CDW

Several hedge funds have recently made changes to their positions in the business. PDS Planning Inc grew its stake in shares of CDW by 4.3% in the third quarter. PDS Planning Inc now owns 1,186 shares of the information technology services provider’s stock worth $268,000 after acquiring an additional 49 shares during the last quarter. Allworth Financial LP grew its stake in shares of 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 during the last quarter. Summit Trail Advisors LLC grew 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 worth $703,000 after acquiring an additional 56 shares during the last quarter. OneAscent Wealth Management LLC lifted its holdings in shares of CDW by 2.5% during 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 in the last quarter. Finally, Fulcrum Equity Management lifted its holdings in shares of CDW by 4.3% during the third quarter. Fulcrum Equity Management now owns 1,442 shares of the information technology services provider’s stock valued at $326,000 after purchasing an additional 60 shares in the last quarter. 93.15% of the stock is owned by hedge funds and other institutional investors.

CDW Stock Performance

The stock has a market capitalization of $27.81 billion, a P/E ratio of 25.95, a P/E/G ratio of 5.39 and a beta of 1.01. The company has a quick ratio of 1.28, a current ratio of 1.40 and a debt-to-equity ratio of 2.39. The business has a fifty day moving average price of $182.49 and a 200-day moving average price of $202.62.

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.