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

CDW Co. (NASDAQ:CDW) reached a new 52-week low on Thursday . The stock traded as low as $151.27 and last traded at $151.53, with a volume of 367351 shares changing hands. The stock had previously closed at $164.47.

Analysts Set New Price Targets

A number of analysts have issued reports on CDW shares. UBS Group cut their price target on shares of CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research note on Tuesday, January 7th. Morgan Stanley upped their target price on shares of CDW from $193.00 to $201.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 6th. Finally, Barclays raised their price target 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 research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, CDW has a consensus rating of “Moderate Buy” and an average target price of $235.50.

CDW Stock Performance

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 simple moving average is $180.64 and its 200 day simple moving average is $190.34. The company has a market capitalization of $20.30 billion, a PE ratio of 19.22, a P/E/G ratio of 3.21 and a beta of 1.01.

CDW (NASDAQ:CDW) last issued its earnings results on Wednesday, February 5th. The information technology services provider reported $2.40 earnings per share 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, research analysts expect that CDW Co. will post 9.41 earnings per share for the current fiscal year.

CDW Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 25th were given a dividend of $0.625 per share. The ex-dividend date was Tuesday, February 25th. This represents a $2.50 annualized dividend and a dividend yield of 1.63%. CDW’s dividend payout ratio is presently 31.37%.

CDW declared that its board has approved a share buyback plan on Wednesday, February 5th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to purchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On CDW

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Orion Capital Management LLC purchased a new position in shares of CDW during the fourth quarter worth about $30,000. Allworth Financial LP increased its position in CDW by 39.7% during the fourth quarter. Allworth Financial LP now owns 183 shares of the information technology services provider’s stock worth $32,000 after buying an additional 52 shares during the period. OFI Invest Asset Management purchased a new stake in CDW in the fourth quarter valued at approximately $32,000. Parkside Financial Bank & Trust boosted its holdings in shares of CDW by 38.9% in the fourth quarter. Parkside Financial Bank & Trust now owns 207 shares of the information technology services provider’s stock valued at $36,000 after acquiring an additional 58 shares during the period. Finally, Optiver Holding B.V. grew its position in shares of CDW by 107.2% during the fourth quarter. Optiver Holding B.V. now owns 230 shares of the information technology services provider’s stock worth $40,000 after acquiring an additional 119 shares during the last quarter. 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.