River Global Investors LLP Acquires New Stake in CDW Co. (NASDAQ:CDW)

River Global Investors LLP acquired a new stake in shares of CDW Co. (NASDAQ:CDW) in the fourth quarter, HoldingsChannel.com reports. The firm acquired 20,810 shares of the information technology services provider’s stock, valued at approximately $4,732,000. CDW comprises about 0.9% of River Global Investors LLP’s investment portfolio, making the stock its 25th biggest holding.

Other hedge funds also recently bought and sold shares of the company. Raymond James Financial Services Advisors Inc. grew its holdings in CDW by 16.1% during the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 49,011 shares of the information technology services provider’s stock valued at $11,141,000 after purchasing an additional 6,799 shares during the period. Cerity Partners LLC grew its holdings in CDW by 44.9% during the fourth quarter. Cerity Partners LLC now owns 14,553 shares of the information technology services provider’s stock valued at $3,308,000 after purchasing an additional 4,511 shares during the period. Pacer Advisors Inc. grew its holdings in CDW by 84.9% during the fourth quarter. Pacer Advisors Inc. now owns 15,924 shares of the information technology services provider’s stock valued at $3,620,000 after purchasing an additional 7,310 shares during the period. JGP Wealth Management LLC bought a new stake in CDW during the fourth quarter valued at about $1,559,000. Finally, California Public Employees Retirement System grew its holdings in CDW by 1.0% during the third quarter. California Public Employees Retirement System now owns 819,011 shares of the information technology services provider’s stock valued at $165,244,000 after purchasing an additional 7,854 shares during the period. Hedge funds and other institutional investors own 93.15% of the company’s stock.

CDW Price Performance

Shares of NASDAQ:CDW traded up $1.15 during mid-day trading on Friday, reaching $219.56. The stock had a trading volume of 805,670 shares, compared to its average volume of 768,724. The company has a current ratio of 1.26, a quick ratio of 1.11 and a debt-to-equity ratio of 2.35. The company has a market cap of $29.51 billion, a P/E ratio of 27.41, a price-to-earnings-growth ratio of 2.47 and a beta of 1.09. CDW Co. has a 1 year low of $162.59 and a 1 year high of $263.37. The business’s 50 day moving average price is $245.67 and its 200 day moving average price is $229.16.

CDW (NASDAQ:CDW) last posted its earnings results on Wednesday, February 7th. The information technology services provider reported $2.57 EPS for the quarter, topping analysts’ consensus estimates of $2.56 by $0.01. CDW had a return on equity of 67.56% and a net margin of 5.16%. The company had revenue of $5.02 billion for the quarter, compared to the consensus estimate of $5.32 billion. During the same period in the previous year, the business earned $2.40 earnings per share. The firm’s revenue for the quarter was down 7.7% on a year-over-year basis. Research analysts expect that CDW Co. will post 9.89 EPS for the current fiscal year.

CDW announced that its Board of Directors has initiated a share repurchase plan on Wednesday, February 7th that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the information technology services provider to purchase up to 2.4% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

CDW Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 11th. Shareholders of record on Friday, May 24th will be given a dividend of $0.62 per share. The ex-dividend date of this dividend is Thursday, May 23rd. This represents a $2.48 dividend on an annualized basis and a yield of 1.13%. CDW’s dividend payout ratio (DPR) is presently 30.96%.

Wall Street Analyst Weigh In

CDW has been the subject of several recent research reports. JPMorgan Chase & Co. cut their price target on CDW from $280.00 to $265.00 and set an “overweight” rating for the company in a report on Thursday. Citigroup dropped their price objective on CDW from $295.00 to $260.00 and set a “buy” rating for the company in a research note on Thursday. Barclays dropped their price objective on CDW from $261.00 to $232.00 and set an “equal weight” rating for the company in a research note on Thursday. Evercore ISI upped their price objective on CDW from $250.00 to $300.00 and gave the stock an “outperform” rating in a research note on Friday, March 22nd. Finally, Stifel Nicolaus dropped their price objective on CDW from $265.00 to $250.00 and set a “buy” rating for the company in a research note on Thursday. Three equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $235.50.

CDW 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.