CDW Co. (NASDAQ:CDW) Sees Significant Growth in Short Interest

CDW Co. (NASDAQ:CDW) was the recipient of a significant growth in short interest in the month of March. As of March 31st, there was short interest totalling 3,030,000 shares, a growth of 14.3% from the March 15th total of 2,650,000 shares. Approximately 2.3% of the company’s shares are sold short. Based on an average daily volume of 696,800 shares, the days-to-cover ratio is currently 4.3 days.

CDW Stock Down 0.6 %

Shares of NASDAQ CDW traded down $1.37 during midday trading on Tuesday, hitting $240.01. The company’s stock had a trading volume of 651,700 shares, compared to its average volume of 706,331. The business’s fifty day simple moving average is $247.59 and its two-hundred day simple moving average is $226.92. The company has a debt-to-equity ratio of 2.46, a current ratio of 1.23 and a quick ratio of 1.11. CDW has a 1 year low of $160.66 and a 1 year high of $263.37. The firm has a market capitalization of $32.25 billion, a price-to-earnings ratio of 29.63, a price-to-earnings-growth ratio of 2.75 and a beta of 1.09.

CDW (NASDAQ:CDW) last posted its quarterly earnings data on Wednesday, February 7th. The information technology services provider reported $2.57 EPS for the quarter, beating the consensus estimate of $2.56 by $0.01. CDW had a net margin of 5.17% and a return on equity of 73.93%. The business had revenue of $5.02 billion during the quarter, compared to analyst estimates of $5.32 billion. During the same quarter last year, the firm posted $2.40 earnings per share. The business’s revenue for the quarter was down 7.7% compared to the same quarter last year. On average, equities analysts predict that CDW will post 9.88 EPS for the current year.

CDW Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 12th. Investors of record on Monday, February 26th were issued a $0.62 dividend. The ex-dividend date of this dividend was Friday, February 23rd. This represents a $2.48 annualized dividend and a yield of 1.03%. CDW’s dividend payout ratio (DPR) is 30.62%.

CDW announced that its Board of Directors has authorized a stock buyback plan on Wednesday, February 7th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the information technology services provider to reacquire up to 2.4% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

CDW has been the subject of a number of analyst reports. JPMorgan Chase & Co. upped their price objective on shares of CDW from $267.00 to $280.00 and gave the company an “overweight” rating in a report on Thursday, April 11th. Barclays upped their price objective on shares of CDW from $219.00 to $261.00 and gave the company an “equal weight” rating in a report on Thursday, February 8th. Citigroup upped their price objective on shares of CDW from $255.00 to $295.00 and gave the company a “buy” rating in a report on Thursday, April 4th. Finally, Evercore ISI increased their target price on shares of CDW from $250.00 to $300.00 and gave the stock an “outperform” rating in a research note on Friday, March 22nd. Four analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $238.90.

Institutional Trading of CDW

Several hedge funds have recently added to or reduced their stakes in the company. Massmutual Trust Co. FSB ADV raised its holdings in CDW by 5.9% in the first quarter. Massmutual Trust Co. FSB ADV now owns 767 shares of the information technology services provider’s stock valued at $196,000 after acquiring an additional 43 shares in the last quarter. Prestige Wealth Management Group LLC raised its holdings in CDW by 6.4% in the fourth quarter. Prestige Wealth Management Group LLC now owns 811 shares of the information technology services provider’s stock valued at $184,000 after acquiring an additional 49 shares in the last quarter. Scotia Capital Inc. raised its holdings in CDW by 1.5% in the third quarter. Scotia Capital Inc. now owns 3,495 shares of the information technology services provider’s stock valued at $705,000 after acquiring an additional 50 shares in the last quarter. Checchi Capital Advisers LLC raised its holdings in CDW by 3.4% in the fourth quarter. Checchi Capital Advisers LLC now owns 1,502 shares of the information technology services provider’s stock valued at $341,000 after acquiring an additional 50 shares in the last quarter. Finally, Diversified Trust Co raised its holdings in CDW by 4.6% during the fourth quarter. Diversified Trust Co now owns 1,157 shares of the information technology services provider’s stock worth $263,000 after purchasing an additional 51 shares in 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.