CDW (CDW) Stock Price, News & Analysis

Company Overview

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. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.

Key Stats

• Today's Range: $223.53 to $230.86
• 50-Day Range: $206.67 to $239.84
• 52-Week Range: $185.04 to $263.37
• Volume: 1.75 million shs
• Average Volume: 828,405 shs
• Market Capitalization: $30.28 billion
• P/E Ratio: 28.13
• Dividend Yield: 1.10%
• Price Target: $254.63
• Consensus Rating: Moderate Buy

CDW Stock Analysis - MarketRank™

CDW scored higher than 95% of companies evaluated by MarketBeat, and ranked 62nd out of 666 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

CDW has received a consensus rating of Moderate Buy. The company's average rating score is 2.75, and is based on 6 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

CDW has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 9.04%

Earnings Growth

Earnings for CDW are expected to grow by 9.04% in the coming year, from $9.40 to $10.25 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of CDW is 28.13, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 131.94.

Price to Earnings Ratio vs. Sector

The P/E ratio of CDW is 28.13, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 272.25.

Price to Earnings Growth Ratio

CDW has a PEG Ratio of 3.27. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

CDW has a P/B Ratio of 14.77. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.79% of the float of CDW has been sold short.

Short Interest Ratio / Days to Cover

CDW has a short interest ratio ("days to cover") of 3.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in CDW has recently increased by 15.22%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

CDW pays a meaningful dividend of 1.13%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

CDW does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of CDW is 30.96%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, CDW will have a dividend payout ratio of 24.20% next year. This indicates that CDW will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.9 / 5
• Environmental Score: -1.05

Percentage of Shares Shorted

2.79% of the float of CDW has been sold short.

Short Interest Ratio / Days to Cover

CDW has a short interest ratio ("days to cover") of 3.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in CDW has recently increased by 15.22%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 0.76

News Sentiment

CDW has a news sentiment score of 0.76. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.51 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 13 news articles for CDW this week, compared to 8 articles on an average week.

Search Interest

25 people have searched for CDW on MarketBeat in the last 30 days. This is an increase of 317% compared to the previous 30 days.

MarketBeat Follows

Only 3 people have added CDW to their MarketBeat watchlist in the last 30 days. This is a decrease of -63% compared to the previous 30 days.

Company Ownership

• Score: 3.3 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, CDW insiders have sold 1,609.14% more of their company's stock than they have bought. Specifically, they have bought $259,380.00 in company stock and sold $4,433,177.00 in company stock.

Percentage Held by Insiders

Only 0.90% of the stock of CDW is held by insiders.

Percentage Held by Institutions

93.15% of the stock of CDW is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

CDW Stock Analysis - Frequently Asked Questions

How have CDW shares performed this year?

CDW's stock was trading at $227.32 at the start of the year. Since then, CDW shares have decreased by 0.9% and is now trading at $225.30.
View the best growth stocks for 2024 here.

How were CDW's earnings last quarter?

CDW Co. (NASDAQ:CDW) released its quarterly earnings results on Wednesday, July, 31st. The information technology services provider reported $2.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.39 by $0.05. CDW's revenue for the quarter was down 3.6% on a year-over-year basis.
Read the conference call transcript.

How will CDW's stock buyback program work?

CDW's Board of Directors approved a share repurchase program on Wednesday, February 7th 2024, which authorizes the company to buy back $750,000,000 in outstanding shares, according to EventVestor. This means that the company could buy up to 2.4% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Does CDW have any subsidiaries?

CDW subsidiaries include these companies: Aptris Inc, Scalar Decisions, Kelway TopCo Limited, Berbee, CDW Canada Corp., CDW Direct LLC, CDW Finance Bidco Limited, and more.

Who are CDW's major shareholders?

Top institutional shareholders of CDW include Select Equity Group L.P. (3.61%), Mawer Investment Management Ltd. (2.31%), Longview Partners Guernsey LTD (1.98%) and Dimensional Fund Advisors LP (0.96%). Insiders that own company stock include Christine A Leahy, Christina M Corley, Sona Chawla, Donna F Zarcone and Albert Joseph Miralles Jr.
View institutional ownership trends.

How do I buy shares of CDW?

Shares of CDW stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of CDW own?

Based on aggregate information from My MarketBeat watchlists, some other companies that CDW investors own include Xtrackers California Municipal Bond ETF (CA), BlackRock (BLK), Endologix (ELGX), Chipotle Mexican Grill (CMG), Micron Technology (MU), Accenture (ACN) and Athabasca Oil (ATH).

Company Calendar

• Last Earnings: 7/31/2024
• Ex-Dividend for 9/10 Dividend: 8/26/2024
• Dividend Payable: 9/10/2024
• Today: 9/21/2024
• Next Earnings (Estimated): 11/06/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Catalog & mail - order houses
• Sub-Industry: Retail
• Current Symbol: NASDAQ:CDW
• CUSIP: N/A
• CIK: 1402057
• Web: www.cdw.com
• Phone: (847) 465-6000
• Fax: N/A
• Employees: 10,900
• Year Founded: 1984

Price Target and Rating

• Average Stock Price Target: $254.63
• High Stock Price Target: $300.00
• Low Stock Price Target: $216.00
• Potential Upside/Downside: +13.0%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.75
• Research Coverage: 8 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $8.01
• Trailing P/E Ratio: 28.13
• Forward P/E Ratio: 23.97
• P/E Growth: 3.27
• Net Income: $1.10 billion
• Net Margins: 5.29%
• Pretax Margin: 6.96%
• Return on Equity: 62.22%
• Return on Assets: 9.59%

Debt

• Debt-to-Equity Ratio: 2.03
• Current Ratio: 1.13
• Quick Ratio: 1.02

Sales & Book Value

• Annual Sales: $20.94 billion
• Price / Sales: 1.45
• Cash Flow: $12.24 per share
• Price / Cash Flow: 18.40
• Book Value: $15.25 per share
• Price / Book: 14.77

Miscellaneous

• Outstanding Shares: 134,398,000
• Free Float: 133,188,000
• Market Cap: $30.28 billion
• Optionable: Optionable
• Beta: 1.04