CDW (NASDAQ:CDW) Shares Gap Up After Strong Earnings

CDW Co. (NASDAQ:CDW - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $199.34, but opened at $222.91. CDW shares last traded at $212.30, with a volume of 545,872 shares changing hands.

The information technology services provider reported $2.40 earnings per share 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%.

CDW Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 25th will be issued a $0.625 dividend. This represents a $2.50 dividend on an annualized basis and a yield of 1.30%. The ex-dividend date is Tuesday, February 25th. CDW's dividend payout ratio (DPR) is currently 31.37%.

CDW declared that its Board of Directors has initiated a share buyback plan on Wednesday, February 5th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the information technology services provider to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

CDW has been the topic of a number of research reports. Barclays upped their price target on CDW from $201.00 to $223.00 and gave the stock an "equal weight" rating in a report on Thursday. 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 boosted their price target on CDW from $193.00 to $201.00 and gave the stock an "equal weight" rating in a report on Thursday. UBS Group decreased their price objective on CDW from $233.00 to $220.00 and set a "buy" rating on the stock in a research note on Tuesday, January 7th. Finally, JPMorgan Chase & Co. downgraded shares of CDW from an "overweight" rating to a "neutral" rating and cut their target price for the company from $260.00 to $235.00 in a research note on Monday, October 28th. Four equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat, CDW currently has an average rating of "Moderate Buy" and a consensus price target of $242.67.

Institutional Trading of CDW

Institutional investors and hedge funds have recently bought and sold shares of the company. Allworth Financial LP grew its position in shares of CDW by 39.7% during the 4th quarter. Allworth Financial LP now owns 183 shares of the information technology services provider's stock valued at $32,000 after buying an additional 52 shares during the last quarter. OFI Invest Asset Management acquired a new stake in CDW in the fourth quarter worth $32,000. Parkside Financial Bank & Trust boosted its holdings in shares of CDW by 38.9% during 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. Canoe Financial LP bought a new position in shares of CDW during the third quarter worth about $37,000. Finally, Fortitude Family Office LLC increased its holdings in shares of CDW by 350.0% in the 3rd quarter. Fortitude Family Office LLC now owns 171 shares of the information technology services provider's stock worth $39,000 after acquiring an additional 133 shares during the period. Institutional investors and hedge funds own 93.15% of the company's stock.

CDW Stock Performance

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 company's 50-day moving average is $183.86 and its two-hundred day moving average is $202.15. The stock has a market capitalization of $25.59 billion, a P/E ratio of 24.09, a P/E/G ratio of 5.40 and a beta of 1.01.

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.