CDW (NASDAQ:CDW) Shares Gap Up on Strong Earnings

Shares of CDW Corporation (NASDAQ:CDW) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $126.16, but opened at $133.50. CDW shares last traded at $134.4710, with a volume of 585,930 shares changing hands.

The information technology services provider reported $2.57 EPS for the quarter, beating analysts’ consensus estimates of $2.44 by $0.13. CDW had a net margin of 4.76% and a return on equity of 50.66%. The firm had revenue of $5.51 billion during the quarter, compared to the consensus estimate of $5.33 billion. During the same quarter last year, the firm earned $2.48 EPS. The firm’s revenue for the quarter was up 6.3% compared to the same quarter last year.

CDW Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Wednesday, February 25th will be issued a $0.63 dividend. The ex-dividend date is Wednesday, February 25th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.8%. CDW’s payout ratio is 31.82%.

CDW News Summary

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Q4 beat on adjusted EPS and revenue — CDW reported adjusted EPS of $2.57 (above consensus) and revenue of $5.51B, driven by broad demand and small-business strength; investors rewarded the topline beat and margin expansion. Reuters: CDW beats fourth-quarter estimates
• Positive Sentiment: Management cited AI and cloud services as durable demand drivers and highlighted record margins and ongoing buybacks that supported the stock’s move higher. Yahoo: CDW Leans on AI, Cloud and Buybacks
• Positive Sentiment: Capital return: Board declared a $0.63 quarterly dividend and management emphasized buybacks (nearly $1B returned recently), underpinning shareholder yield and signaling confidence in cash flow. BusinessWire: Dividend announcement
• Neutral Sentiment: Small analyst moves: Morgan Stanley nudged its target from $141 to $142 with an “equal weight” rating — a minor signal that some shops see limited near-term upside. Benzinga: Morgan Stanley target change
• Neutral Sentiment: Analyst landscape remains mixed: consensus/median targets sit well above today’s price (QuiverQuant shows a median near ~$166.5), indicating divergent views on multi-year growth vs. valuation. QuiverQuant: Analyst targets & institutional flow
• Negative Sentiment: JPMorgan lowered its price target from $170 to $160 and moved to “neutral” — a notable headline that could cap upside if other large shops follow. Benzinga: JPMorgan cuts target
• Negative Sentiment: Conflicting/GAAP details in some call transcripts: one transcript flags a GAAP EPS miss (different from the adjusted-beat headlines), which could create short-term confusion for investors focused on GAAP metrics. InsiderMonkey: Earnings call transcript

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Barclays lowered their price target on CDW from $148.00 to $144.00 and set an “equal weight” rating for the company in a research report on Thursday. Weiss Ratings reissued a “hold (c-)” rating on shares of CDW in a research note on Tuesday, January 27th. Raymond James Financial raised shares of CDW from an “outperform” rating to a “strong-buy” rating and set a $185.00 price target for the company in a research note on Tuesday, November 25th. Morgan Stanley upped their price target on shares of CDW from $141.00 to $142.00 and gave the company an “equal weight” rating in a report on Thursday. Finally, UBS Group reduced their price objective on shares of CDW from $190.00 to $162.00 and set a “buy” rating on the stock in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $160.43.

Insider Buying and Selling at CDW

In other CDW news, insider Sona Chawla sold 7,400 shares of the company’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $146.17, for a total value of $1,081,658.00. Following the completion of the sale, the insider directly owned 28,110 shares in the company, valued at approximately $4,108,838.70. This represents a 20.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.84% of the company’s stock.

Institutional Trading of CDW

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Root Financial Partners LLC bought a new position in shares of CDW in the 3rd quarter worth $26,000. Quent Capital LLC purchased a new position in CDW in the third quarter valued at about $57,000. eCIO Inc. bought a new position in CDW in the fourth quarter worth about $61,000. Covestor Ltd raised its holdings in CDW by 87.9% in the third quarter. Covestor Ltd now owns 483 shares of the information technology services provider’s stock worth $77,000 after purchasing an additional 226 shares in the last quarter. Finally, American National Bank & Trust purchased a new stake in shares of CDW during the fourth quarter valued at about $110,000. Institutional investors own 93.15% of the company’s stock.

CDW Stock Up 1.9%

The business’s fifty day moving average price is $136.52 and its two-hundred day moving average price is $151.58. The company has a debt-to-equity ratio of 1.77, a quick ratio of 1.30 and a current ratio of 1.18. The firm has a market capitalization of $18.33 billion, a P/E ratio of 17.40, a PEG ratio of 1.98 and a beta of 1.08.

About CDW

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.