CDW Co. (NASDAQ:CDW) Receives Average Rating of "Moderate Buy" from Analysts

CDW Co. (NASDAQ:CDW - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nine ratings firms that are currently covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $242.67.

Several equities analysts have recently weighed in on the stock. UBS Group decreased 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 raised their price target 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. Barclays raised their price target on shares of CDW from $201.00 to $223.00 and gave the stock an "equal weight" rating in a research note on Thursday, February 6th. Finally, Redburn Atlantic assumed coverage on shares of CDW in a research note on Friday, November 15th. They issued a "buy" rating and a $230.00 price target on the stock.

Institutional Investors Weigh In On CDW

A number of institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of 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 valued at $2,901,905,000 after acquiring an additional 99,947 shares during the last quarter. State Street Corp increased its position in shares of 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 valued at $1,294,288,000 after acquiring an additional 64,702 shares during the last quarter. Geode Capital Management LLC increased its position in shares of CDW by 1.6% during the fourth 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 acquiring an additional 54,341 shares during the last quarter. Wellington Management Group LLP increased its position in shares of CDW by 29.2% during 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 position in shares of CDW by 27.6% during 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 acquiring an additional 524,559 shares during the last quarter. 93.15% of the stock is currently owned by institutional investors and hedge funds.

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CDW Price Performance

CDW traded up $1.27 during midday trading on Friday, hitting $172.59. 1,017,036 shares of the company traded hands, compared to its average volume of 1,358,153. The company has a current ratio of 1.35, a quick ratio of 1.24 and a debt-to-equity ratio of 2.38. The company has a market capitalization of $22.87 billion, a price-to-earnings ratio of 21.65, a PEG ratio of 3.21 and a beta of 1.01. CDW has a 52-week low of $168.43 and a 52-week high of $263.37. The business has a 50 day simple moving average of $186.64 and a two-hundred day simple moving average of $198.10.

CDW (NASDAQ:CDW - Get Free Report) 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, beating the consensus estimate of $2.33 by $0.07. CDW had a net margin of 5.13% and a return on equity of 55.42%. On average, equities analysts forecast that CDW will post 9.41 earnings per share for the current fiscal year.

CDW announced that its board has initiated a stock buyback program on Wednesday, February 5th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the information technology services provider to purchase up to 2.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

CDW Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 25th will be given a dividend of $0.625 per share. This represents a $2.50 annualized dividend and a yield of 1.45%. The ex-dividend date of this dividend is Tuesday, February 25th. CDW's payout ratio is currently 31.37%.

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.