CDW (NASDAQ:CDW) Announces Quarterly Earnings Results

CDW (NASDAQ:CDW - Get Free Report) announced its quarterly earnings data on Wednesday. The information technology services provider reported $2.40 earnings per share for the quarter, beating analysts' consensus estimates of $2.33 by $0.07, Zacks reports. CDW had a return on equity of 55.42% and a net margin of 5.13%.

CDW Stock Down 3.9 %

NASDAQ:CDW traded down $7.84 during midday trading on Friday, reaching $192.02. The company had a trading volume of 1,470,637 shares, compared to its average volume of 1,442,600. CDW has a 12-month low of $168.43 and a 12-month high of $263.37. The firm has a market capitalization of $25.59 billion, a price-to-earnings ratio of 24.09, a PEG ratio of 5.40 and a beta of 1.01. The company has a current ratio of 1.35, a quick ratio of 1.28 and a debt-to-equity ratio of 2.38. The stock's fifty day simple moving average is $183.86 and its 200-day simple moving average is $202.15.

CDW Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 25th will be given a dividend of $0.625 per share. The ex-dividend date of this dividend is Tuesday, February 25th. This represents a $2.50 annualized dividend and a dividend yield of 1.30%. CDW's dividend payout ratio is presently 31.37%.

CDW announced that its board has initiated a share buyback 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 often an indication that the company's leadership believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. JPMorgan Chase & Co. downgraded shares of CDW from an "overweight" rating to a "neutral" rating and decreased their price target for the stock from $260.00 to $235.00 in a research note on Monday, October 28th. UBS Group decreased their target price 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. Redburn Atlantic started coverage on CDW in a report on Friday, November 15th. They set a "buy" rating and a $230.00 target price on the stock. Morgan Stanley increased their price target on CDW from $193.00 to $201.00 and gave the company an "equal weight" rating in a report on Thursday. Finally, Barclays boosted their price objective on CDW from $201.00 to $223.00 and gave the stock an "equal weight" rating in a research note on Thursday. Four equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $242.67.

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.