CDW (NASDAQ:CDW) Shares Gap Down Following Weak Earnings

Shares of CDW Co. (NASDAQ:CDW) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $232.47, but opened at $220.48. CDW shares last traded at $220.65, with a volume of 67,628 shares changing hands.

The information technology services provider reported $2.34 earnings per share for the quarter, missing the consensus estimate of $2.39 by ($0.05). The firm had revenue of $5.42 billion during the quarter, compared to analysts’ expectations of $5.43 billion. CDW had a return on equity of 63.60% and a net margin of 5.29%. The business’s revenue was down 3.6% on a year-over-year basis. During the same period last year, the business earned $2.43 earnings per share.

CDW Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 10th. Investors of record on Monday, August 26th will be issued a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 1.18%. The ex-dividend date is Monday, August 26th. CDW’s dividend payout ratio is currently 30.96%.

Analyst Ratings Changes

Several analysts recently commented on CDW shares. Northcoast Research upgraded shares of CDW from a “neutral” rating to a “buy” rating and set a $270.00 price target for the company in a report on Friday, June 7th. Stifel Nicolaus raised their price target on shares of CDW from $250.00 to $260.00 and gave the stock a “buy” rating in a report on Wednesday, July 17th. Barclays decreased their price target on shares of CDW from $232.00 to $229.00 and set an “equal weight” rating for the company in a report on Thursday. Citigroup decreased their price target on shares of CDW from $295.00 to $260.00 and set a “buy” rating for the company in a report on Thursday, May 2nd. Finally, JPMorgan Chase & Co. reduced their target price on shares of CDW from $280.00 to $265.00 and set an “overweight” rating for the company in a research note on Thursday, May 2nd. Three analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $250.78.

Insider Buying and Selling at CDW

In other news, insider Sona Chawla sold 18,437 shares of CDW stock in a transaction that occurred on Tuesday, July 16th. The shares were sold at an average price of $240.45, for a total value of $4,433,176.65. Following the transaction, the insider now owns 22,428 shares of the company’s stock, valued at $5,392,812.60. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 0.90% of the company’s stock.

Hedge Funds Weigh In On CDW

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its stake in shares of CDW by 4.6% in the 1st quarter. Vanguard Group Inc. now owns 16,407,542 shares of the information technology services provider’s stock valued at $4,196,721,000 after buying an additional 714,393 shares in the last quarter. Wellington Management Group LLP grew its holdings in shares of CDW by 29.1% in the 4th quarter. Wellington Management Group LLP now owns 3,464,886 shares of the information technology services provider’s stock worth $787,638,000 after purchasing an additional 781,421 shares during the last quarter. Mawer Investment Management Ltd. grew its holdings in shares of CDW by 0.9% in the 1st quarter. Mawer Investment Management Ltd. now owns 3,101,924 shares of the information technology services provider’s stock worth $793,410,000 after purchasing an additional 27,753 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of CDW by 3.7% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,431,573 shares of the information technology services provider’s stock worth $366,168,000 after purchasing an additional 51,450 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of CDW by 3.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,135,792 shares of the information technology services provider’s stock worth $258,196,000 after purchasing an additional 33,235 shares during the last quarter. Institutional investors own 93.15% of the company’s stock.

CDW Trading Down 1.8 %

The company’s fifty day moving average price is $225.71 and its two-hundred day moving average price is $234.20. The company has a current ratio of 1.26, a quick ratio of 1.13 and a debt-to-equity ratio of 2.35. The firm has a market cap of $28.20 billion, a P/E ratio of 26.20, a price-to-earnings-growth ratio of 3.24 and a beta of 1.04.

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.