CDW (NASDAQ:CDW) Hits New 1-Year Low – Here’s Why

CDW Co. (NASDAQ:CDW)’s stock price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $151.27 and last traded at $151.53, with a volume of 367351 shares changing hands. The stock had previously closed at $164.47.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. UBS Group reduced their target price on shares of CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research report on Tuesday, January 7th. Barclays boosted their price objective on shares of CDW from $201.00 to $223.00 and gave the stock an “equal weight” rating in a report on Thursday, February 6th. Finally, Morgan Stanley raised their target price on CDW from $193.00 to $201.00 and gave the company an “equal weight” rating in a research note on Thursday, February 6th. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, CDW currently has a consensus rating of “Moderate Buy” and a consensus target price of $235.50.

CDW Stock Performance

The company’s fifty day simple moving average is $178.71 and its two-hundred day simple moving average is $189.54. The company has a market capitalization of $19.14 billion, a price-to-earnings ratio of 18.13, a price-to-earnings-growth ratio of 3.21 and a beta of 1.01. The company has a debt-to-equity ratio of 2.38, a quick ratio of 1.24 and a current ratio of 1.35.

CDW (NASDAQ:CDW) last posted its quarterly earnings results on Wednesday, February 5th. The information technology services provider reported $2.40 EPS for the quarter, topping analysts’ consensus estimates of $2.33 by $0.07. CDW had a return on equity of 55.42% and a net margin of 5.13%. Equities research analysts predict that CDW Co. will post 9.41 earnings per share for the current fiscal year.

CDW Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 25th were issued a $0.625 dividend. The ex-dividend date was Tuesday, February 25th. This represents a $2.50 dividend on an annualized basis and a dividend yield of 1.73%. CDW’s dividend payout ratio (DPR) is 31.37%.

CDW declared that its Board of Directors has initiated a stock buyback program on Wednesday, February 5th that permits the company to buyback $750.00 million in outstanding 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 a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On CDW

A number of hedge funds have recently added to or reduced their stakes in CDW. D. E. Shaw & Co. Inc. lifted its position in shares of CDW by 906.9% in the 4th quarter. D. E. Shaw & Co. Inc. now owns 2,024,887 shares of the information technology services provider’s stock worth $352,411,000 after buying an additional 1,823,788 shares during the last quarter. Alyeska Investment Group L.P. raised its stake in CDW by 17,349.6% during the fourth quarter. Alyeska Investment Group L.P. now owns 1,380,787 shares of the information technology services provider’s stock worth $240,312,000 after acquiring an additional 1,372,874 shares during the period. Norges Bank bought a new position in CDW in the fourth quarter worth about $144,826,000. Madison Investment Advisors LLC acquired a new stake in CDW in the fourth quarter worth $130,996,000. Finally, Proficio Capital Partners LLC lifted its stake in CDW by 18,259.3% in the fourth quarter. Proficio Capital Partners LLC now owns 687,189 shares of the information technology services provider’s stock valued at $119,598,000 after buying an additional 683,446 shares during the last quarter. Institutional investors and hedge funds own 93.15% of the company’s stock.

About CDW

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.