CDW (NASDAQ:CDW) Reaches New 1-Year Low – Here’s What Happened

CDW Co. (NASDAQ:CDW)’s share price hit a new 52-week low during trading on Wednesday . The company traded as low as $164.96 and last traded at $166.05, with a volume of 1583383 shares traded. The stock had previously closed at $169.51.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on CDW shares. UBS Group reduced their target price on shares of CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a report on Tuesday, January 7th. Barclays increased their price objective on shares of CDW from $201.00 to $223.00 and gave the company an “equal weight” rating in a research report on Thursday, February 6th. Morgan Stanley lifted their price objective on shares of CDW from $193.00 to $201.00 and gave the stock an “equal weight” rating in a research report on Thursday, February 6th. Finally, Redburn Atlantic initiated coverage on CDW in a report on Friday, November 15th. They issued a “buy” rating and a $230.00 target price on the stock. Four analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $242.67.

CDW Price Performance

The stock has a market capitalization of $21.66 billion, a PE ratio of 20.51, a P/E/G ratio of 3.21 and a beta of 1.01. The company has a debt-to-equity ratio of 2.38, a quick ratio of 1.24 and a current ratio of 1.35. The stock’s 50-day moving average is $185.84 and its 200 day moving average is $195.95.

CDW (NASDAQ:CDW) last issued its quarterly earnings data on Wednesday, February 5th. The information technology services provider reported $2.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.33 by $0.07. CDW had a return on equity of 55.42% and a net margin of 5.13%. As a group, equities analysts expect that CDW Co. will post 9.41 earnings per share for the current year.

CDW Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 25th were given a dividend of $0.625 per share. This represents a $2.50 annualized dividend and a yield of 1.53%. The ex-dividend date was Tuesday, February 25th. CDW’s dividend payout ratio (DPR) is 31.37%.

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

Hedge Funds Weigh In On CDW

Institutional investors have recently modified their holdings of the business. Dogwood Wealth Management LLC increased its stake in CDW by 37.3% in the fourth quarter. Dogwood Wealth Management LLC now owns 3,013 shares of the information technology services provider’s stock valued at $524,000 after purchasing an additional 819 shares during the period. Siemens Fonds Invest GmbH grew its holdings in shares of CDW by 483.9% during the fourth quarter. Siemens Fonds Invest GmbH now owns 8,571 shares of the information technology services provider’s stock worth $1,492,000 after buying an additional 7,103 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in CDW in the 4th quarter valued at about $23,999,000. Azzad Asset Management Inc. ADV raised its stake in CDW by 41.7% during the 4th quarter. Azzad Asset Management Inc. ADV now owns 7,903 shares of the information technology services provider’s stock valued at $1,375,000 after acquiring an additional 2,325 shares during the last quarter. Finally, Jefferies Financial Group Inc. acquired a new stake in CDW during the 4th quarter worth approximately $3,874,000. 93.15% of the stock is 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.