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

CDW Corporation (NASDAQ:CDW) shares gapped up prior to trading on Tuesday . The stock had previously closed at $123.57, but opened at $127.38. CDW shares last traded at $130.0490, with a volume of 125,272 shares changing hands.

Analysts Set New Price Targets

CDW has been the topic of a number of research reports. JPMorgan Chase & Co. upgraded CDW from a “neutral” rating to an “overweight” rating and set a $130.00 price target on the stock in a report on Wednesday, May 27th. Weiss Ratings upgraded CDW from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, June 11th. Citigroup dropped their target price on CDW from $150.00 to $123.00 and set a “neutral” rating on the stock in a research report on Friday, May 8th. Royal Bank Of Canada upgraded CDW to an “outperform” rating and set a $130.00 target price on the stock in a research note on Wednesday, May 27th. Finally, Morgan Stanley raised CDW from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $142.00 to $170.00 in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $144.12.

CDW Stock Up 0.1%

The firm’s 50 day simple moving average is $124.22 and its 200-day simple moving average is $127.79. The company has a current ratio of 1.16, a quick ratio of 1.06 and a debt-to-equity ratio of 1.81. The stock has a market capitalization of $16.64 billion, a price-to-earnings ratio of 15.84, a price-to-earnings-growth ratio of 1.73 and a beta of 1.00.

CDW (NASDAQ:CDW) last posted its quarterly earnings data on Wednesday, May 6th. The information technology services provider reported $2.28 EPS for the quarter, hitting analysts’ consensus estimates of $2.28. The company had revenue of $5.68 billion during the quarter, compared to the consensus estimate of $5.48 billion. CDW had a net margin of 4.70% and a return on equity of 49.67%. The company’s quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the business posted $2.15 EPS. Equities analysts expect that CDW Corporation will post 10.17 earnings per share for the current fiscal year.

CDW Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Monday, May 25th were given a dividend of $0.63 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $2.52 annualized dividend and a yield of 1.9%. CDW’s dividend payout ratio is 30.66%.

Insiders Place Their Bets

In related news, Director David W. Nelms purchased 18,000 shares of the firm’s stock in a transaction on Wednesday, May 27th. The stock was purchased at an average cost of $111.43 per share, for a total transaction of $2,005,740.00. Following the completion of the purchase, the director directly owned 51,025 shares in the company, valued at $5,685,715.75. This trade represents a 54.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.82% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CDW

Large investors have recently made changes to their positions in the stock. Fenimore Asset Management Inc grew its stake in shares of CDW by 0.8% in the fourth quarter. Fenimore Asset Management Inc now owns 1,150,567 shares of the information technology services provider’s stock valued at $156,707,000 after buying an additional 9,485 shares in the last quarter. Marshall Wace LLP raised its position in CDW by 255.7% during the third quarter. Marshall Wace LLP now owns 599,248 shares of the information technology services provider’s stock worth $95,448,000 after acquiring an additional 430,796 shares in the last quarter. Pacer Advisors Inc. lifted its stake in CDW by 5,081.1% in the first quarter. Pacer Advisors Inc. now owns 549,247 shares of the information technology services provider’s stock valued at $66,470,000 after acquiring an additional 538,646 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in CDW by 20.5% in the fourth quarter. BNP Paribas Financial Markets now owns 284,965 shares of the information technology services provider’s stock valued at $38,812,000 after acquiring an additional 48,547 shares during the last quarter. Finally, Local Pensions Partnership Investment Ltd grew its position in shares of CDW by 7.8% in the 4th quarter. Local Pensions Partnership Investment Ltd now owns 249,176 shares of the information technology services provider’s stock valued at $33,940,000 after acquiring an additional 18,000 shares during the period. Institutional investors and hedge funds own 93.15% of the company’s stock.

CDW Company Profile

CDW (NASDAQ: CDW) is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.