CDW (NASDAQ:CDW) Shares Gap Down – What’s Next?

Shares of CDW Corporation (NASDAQ:CDW) gapped down before the market opened on Wednesday . The stock had previously closed at $154.00, but opened at $115.45. CDW shares last traded at $132.83, with a volume of 1,799,802 shares changing hands.

Analysts Set New Price Targets

CDW has been the topic of several recent research reports. Barclays dropped their price objective on shares of CDW from $144.00 to $123.00 and set an “equal weight” rating on the stock in a report on Thursday, May 7th. Morgan Stanley increased their target price on shares of CDW from $170.00 to $171.00 and gave the stock an “overweight” rating in a research note on Thursday. Weiss Ratings upgraded CDW from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, June 11th. Royal Bank Of Canada raised CDW to an “outperform” rating and set a $130.00 price target for the company in a report on Wednesday, May 27th. Finally, UBS Group dropped their price objective on CDW from $162.00 to $147.00 and set a “buy” rating on the stock in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $147.00.

CDW Price Performance

The firm has a market cap of $17.63 billion, a price-to-earnings ratio of 16.60, a P/E/G ratio of 1.86 and a beta of 0.96. The company has a current ratio of 1.17, a quick ratio of 1.06 and a debt-to-equity ratio of 1.97. The stock’s fifty day moving average price is $135.78 and its 200-day moving average price is $127.64.

CDW (NASDAQ:CDW) last announced its earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share for the quarter, topping the consensus estimate of $2.80 by $0.11. CDW had a net margin of 4.60% and a return on equity of 50.61%. The company had revenue of $6.57 billion during the quarter, compared to analyst estimates of $6.21 billion. During the same quarter last year, the firm posted $2.60 earnings per share. CDW’s revenue was up 10.0% compared to the same quarter last year. As a group, equities research analysts forecast that CDW Corporation will post 10.21 earnings per share for the current fiscal year.

CDW Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th will be given a dividend of $0.63 per share. The ex-dividend date is Tuesday, August 25th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.8%. CDW’s payout ratio is 30.29%.

Insider Activity at CDW

In other CDW news, Director David W. Nelms acquired 18,000 shares of the company’s stock in a transaction on Wednesday, May 27th. The shares were bought at an average cost of $111.43 per share, for a total transaction of $2,005,740.00. Following the completion of the purchase, the director owned 51,025 shares in the company, valued at $5,685,715.75. This trade represents a 54.50% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.82% of the stock is owned by insiders.

Institutional Investors Weigh In On CDW

A number of institutional investors and hedge funds have recently modified their holdings of the company. Fenimore Asset Management Inc grew its holdings in CDW by 0.8% in the fourth quarter. Fenimore Asset Management Inc now owns 1,150,567 shares of the information technology services provider’s stock valued at $156,707,000 after purchasing an additional 9,485 shares during the last quarter. Marshall Wace LLP grew its holdings in shares of CDW by 255.7% during the third quarter. Marshall Wace LLP now owns 599,248 shares of the information technology services provider’s stock worth $95,448,000 after buying an additional 430,796 shares in the last quarter. Pacer Advisors Inc. grew its holdings in shares of CDW by 5,081.1% during the first quarter. Pacer Advisors Inc. now owns 549,247 shares of the information technology services provider’s stock worth $66,470,000 after buying an additional 538,646 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of CDW in the second quarter valued at approximately $44,850,000. Finally, BNP Paribas Financial Markets raised its position in shares of CDW by 20.5% in the fourth quarter. BNP Paribas Financial Markets now owns 284,965 shares of the information technology services provider’s stock valued at $38,812,000 after buying an additional 48,547 shares during the last quarter. Institutional investors and hedge funds own 93.15% of the company’s stock.

CDW Company Profile

CDW (NASDAQ: CDW) is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.