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

CDW Co. (NASDAQ:CDW) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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 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 Announces Dividend

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

Wall Street Analyst Weigh In

CDW has been the subject of several research analyst reports. JPMorgan Chase & Co. cut CDW from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $260.00 to $235.00 in a research report on Monday, October 28th. Morgan Stanley increased 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. Barclays cut 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. Redburn Atlantic began coverage on CDW in a report on Friday, November 15th. They set a “buy” rating and a $230.00 price target for the company. Finally, UBS Group cut their price target on CDW from $233.00 to $220.00 and set a “buy” rating for the company in a report on Tuesday, January 7th. Four analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $239.33.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Proficio Capital Partners LLC increased its holdings in shares of CDW by 18,259.3% in the 4th quarter. Proficio Capital Partners LLC now owns 687,189 shares of the information technology services provider’s stock valued at $119,598,000 after acquiring an additional 683,446 shares during the period. Oppenheimer & Co. Inc. increased its holdings in shares of CDW by 41.5% in the 4th quarter. Oppenheimer & Co. Inc. now owns 2,389 shares of the information technology services provider’s stock valued at $416,000 after acquiring an additional 701 shares during the period. Advisor OS LLC increased its holdings in shares of CDW by 151.1% in the 4th quarter. Advisor OS LLC now owns 3,649 shares of the information technology services provider’s stock valued at $635,000 after acquiring an additional 2,196 shares during the period. Bank of New York Mellon Corp grew its stake in CDW by 4.3% during the 4th quarter. Bank of New York Mellon Corp now owns 979,521 shares of the information technology services provider’s stock worth $170,476,000 after buying an additional 40,666 shares during the last quarter. Finally, Impax Asset Management Group plc grew its stake in CDW by 22.7% during the 4th quarter. Impax Asset Management Group plc now owns 41,295 shares of the information technology services provider’s stock worth $7,187,000 after buying an additional 7,642 shares during the last quarter. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

CDW Trading Up 4.7 %

The company has a 50 day moving average of $182.49 and a two-hundred day moving average of $202.62. The company has a debt-to-equity ratio of 2.39, a quick ratio of 1.28 and a current ratio of 1.40. The stock has a market capitalization of $27.81 billion, a PE ratio of 25.95, a P/E/G ratio of 5.39 and a beta of 1.01.

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.