CDW (NASDAQ:CDW) Shares Gap Down - Here's Why

Shares of CDW Co. (NASDAQ:CDW - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $219.90, but opened at $200.21. CDW shares last traded at $203.47, with a volume of 198,719 shares.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Citigroup downgraded CDW from a "buy" rating to a "neutral" rating and lowered their price objective for the company from $250.00 to $245.00 in a research report on Tuesday, October 1st. JPMorgan Chase & Co. downgraded CDW from an "overweight" rating to a "neutral" rating and dropped their price target for the stock from $260.00 to $235.00 in a research note on Monday. Stifel Nicolaus lifted their price objective on shares of CDW from $250.00 to $260.00 and gave the company a "buy" rating in a research report on Wednesday, July 17th. Finally, Barclays dropped their target price on shares of CDW from $232.00 to $229.00 and set an "equal weight" rating for the company in a research report on Thursday, August 1st. Four research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, CDW presently has a consensus rating of "Hold" and a consensus price target of $250.71.

CDW Price Performance

The company has a market capitalization of $26.22 billion, a PE ratio of 24.35, a P/E/G ratio of 3.42 and a beta of 1.03. The firm has a fifty day simple moving average of $221.46 and a 200 day simple moving average of $224.17. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.02 and a current ratio of 1.13.

CDW (NASDAQ:CDW - Get Free Report) last posted its quarterly earnings results on Wednesday, July 31st. The information technology services provider reported $2.34 EPS for the quarter, missing the consensus estimate of $2.39 by ($0.05). The business had revenue of $5.42 billion during the quarter, compared to the consensus estimate of $5.43 billion. CDW had a net margin of 5.29% and a return on equity of 62.22%. The company's revenue for the quarter was down 3.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.43 EPS. Equities analysts anticipate that CDW Co. will post 9.4 EPS for the current year.

CDW Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 10th. Shareholders of record on Monday, November 25th will be given a dividend of $0.625 per share. This represents a $2.50 annualized dividend and a dividend yield of 1.28%. This is a positive change from CDW's previous quarterly dividend of $0.62. CDW's dividend payout ratio is presently 30.96%.

Insider Buying and Selling

In other CDW news, insider Christine A. Leahy purchased 1,200 shares of the stock in a transaction on Thursday, August 1st. The stock was acquired at an average price of $216.15 per share, with a total value of $259,380.00. Following the completion of the acquisition, the insider now owns 102,200 shares in the company, valued at $22,090,530. The trade was a 0.00 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. 0.90% of the stock is currently owned by company insiders.

Institutional Trading of CDW

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quest Partners LLC purchased a new stake in CDW in the 2nd quarter worth approximately $35,000. ORG Partners LLC purchased a new position in CDW in the second quarter valued at $34,000. Canoe Financial LP acquired a new position in shares of CDW in the third quarter worth about $37,000. Fortitude Family Office LLC raised its holdings in 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 purchasing an additional 133 shares during the period. Finally, Summit Securities Group LLC acquired a new stake in CDW in the second quarter valued at approximately $40,000. Institutional investors and hedge funds own 93.15% of the company's stock.

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.