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

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

Hedge Funds Weigh In On CDW

A number of large investors have recently modified their holdings of the company. OFI Invest Asset Management purchased a new position in shares of CDW during the third quarter worth approximately $25,000. Tsfg LLC purchased a new position in shares of CDW during the first quarter worth approximately $26,000. VisionPoint Advisory Group LLC purchased a new position in shares of CDW during the third quarter worth approximately $28,000. TFC Financial Management Inc. raised its stake in shares of CDW by 61.1% during the third quarter. TFC Financial Management Inc. now owns 145 shares of the information technology services provider’s stock worth $29,000 after acquiring an additional 55 shares in the last quarter. Finally, Larson Financial Group LLC purchased a new position in shares of CDW during the fourth quarter worth approximately $30,000. 93.15% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Barclays upped their price target on shares of CDW from $219.00 to $261.00 and gave the company an “equal weight” rating in a research report on Thursday, February 8th. Citigroup upped their price target on shares of CDW from $255.00 to $295.00 and gave the company a “buy” rating in a research report on Thursday, April 4th. Evercore ISI upped their price objective on shares of CDW from $250.00 to $300.00 and gave the company an “outperform” rating in a research note on Friday, March 22nd. Finally, 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 research note on Thursday, April 11th. Four analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, CDW currently has a consensus rating of “Moderate Buy” and a consensus price target of $238.90.

CDW Stock Performance

NASDAQ CDW traded down $1.37 during trading hours on Tuesday, reaching $240.01. 651,700 shares of the company were exchanged, compared to its average volume of 706,331. CDW has a 1 year low of $160.66 and a 1 year high of $263.37. The business’s 50 day simple moving average is $247.59 and its 200-day simple moving average is $226.92. The company has a quick ratio of 1.11, a current ratio of 1.23 and a debt-to-equity ratio of 2.46. The stock has a market capitalization of $32.25 billion, a P/E ratio of 29.63, a P/E/G ratio of 2.75 and a beta of 1.09.

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

CDW declared that its board has approved a share repurchase plan on Wednesday, February 7th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the information technology services provider to purchase up to 2.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

CDW Announces Dividend

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

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.