CDW Co. (NASDAQ:CDW) Sees Large Decline in Short Interest

CDW Co. (NASDAQ:CDW) was the target of a large drop in short interest during the month of February. As of February 15th, there was short interest totalling 2,790,000 shares, a drop of 12.3% from the January 31st total of 3,180,000 shares. Based on an average daily volume of 1,330,000 shares, the short-interest ratio is currently 2.1 days. Currently, 2.1% of the company’s shares are sold short.

CDW Stock Down 2.5 %

NASDAQ CDW traded down $4.35 on Thursday, reaching $168.24. The company had a trading volume of 691,975 shares, compared to its average volume of 1,341,579. The company’s fifty day moving average is $186.57 and its 200-day moving average is $197.93. CDW has a 1-year low of $167.83 and a 1-year high of $263.37. The firm has a market capitalization of $22.29 billion, a price-to-earnings ratio of 21.10, a price-to-earnings-growth 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.

CDW (NASDAQ:CDW) last posted its quarterly earnings data on Wednesday, February 5th. The information technology services provider reported $2.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.33 by $0.07. CDW had a return on equity of 55.42% and a net margin of 5.13%. On average, research analysts forecast that CDW will post 9.41 earnings per share for the current fiscal year.

CDW announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 5th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the information technology services provider to repurchase up to 2.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

CDW Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 25th will be issued a dividend of $0.625 per share. This represents a $2.50 annualized dividend and a yield of 1.49%. The ex-dividend date is Tuesday, February 25th. CDW’s payout ratio is 31.37%.

Wall Street Analysts Forecast Growth

CDW has been the subject of a number of recent analyst reports. Morgan Stanley upped their price objective on CDW from $193.00 to $201.00 and gave the company an “equal weight” rating in a report on Thursday, February 6th. UBS Group lowered their target price on shares of CDW from $233.00 to $220.00 and set a “buy” rating for the company in a research note on Tuesday, January 7th. Redburn Atlantic assumed coverage on shares of CDW in a research report on Friday, November 15th. They set a “buy” rating and a $230.00 price target on the stock. Finally, Barclays upped 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. Four equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $242.67.

Hedge Funds Weigh In On CDW

A number of large investors have recently modified their holdings of CDW. Vanguard Group Inc. raised its holdings in CDW by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 16,673,784 shares of the information technology services provider’s stock worth $2,901,905,000 after acquiring an additional 99,947 shares in the last quarter. State Street Corp grew its stake in CDW by 1.1% during the third quarter. State Street Corp now owns 5,719,348 shares of the information technology services provider’s stock worth $1,294,288,000 after buying an additional 64,702 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of CDW by 1.6% in the 4th quarter. Geode Capital Management LLC now owns 3,535,405 shares of the information technology services provider’s stock valued at $614,220,000 after purchasing an additional 54,341 shares in the last quarter. Wellington Management Group LLP grew its position in CDW by 29.2% in the fourth quarter. Wellington Management Group LLP now owns 2,538,775 shares of the information technology services provider’s stock valued at $441,848,000 after acquiring an additional 574,444 shares during the last quarter. Finally, Invesco Ltd. increased its stake in shares of CDW by 27.6% in the fourth quarter. Invesco Ltd. now owns 2,426,746 shares of the information technology services provider’s stock valued at $422,351,000 after buying an additional 524,559 shares during the period. 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.