CDW (NASDAQ:CDW) Reaches New 12-Month Low Following Analyst Downgrade

CDW Corporation (NASDAQ:CDW) reached a new 52-week low on Thursday after Citigroup lowered their price target on the stock from $150.00 to $123.00. Citigroup currently has a neutral rating on the stock. CDW traded as low as $106.00 and last traded at $109.00, with a volume of 6321308 shares traded. The stock had previously closed at $136.80.

Other equities analysts have also issued research reports about the company. UBS Group lowered their price objective on CDW from $162.00 to $147.00 and set a “buy” rating on the stock in a research note on Thursday. Evercore reaffirmed an “outperform” rating and issued a $180.00 price target on shares of CDW in a research note on Tuesday, January 20th. Raymond James Financial set a $150.00 price target on CDW in a research note on Wednesday. JPMorgan Chase & Co. decreased their price target on CDW from $160.00 to $130.00 and set a “neutral” rating on the stock in a research note on Thursday. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CDW in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $142.14.

Key Stories Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported Q1 EPS of $2.28, matching estimates, while revenue of $5.68 billion topped expectations and rose 9.2% year over year; management also highlighted its “Geared for Growth” and AI-first initiatives, which could support margin improvement and up to $200 million in cost savings. Article Title
• Positive Sentiment: JPMorgan still sees upside from current levels despite lowering its target to $130, and several other recent price targets remain above the stock price, suggesting analysts have not turned outright bearish. Article Title
• Neutral Sentiment: Technical commentary says CDW is in oversold territory, which could support a bounce if selling pressure fades, but this is more of a trading signal than a fundamental catalyst. Article Title
• Negative Sentiment: Despite the revenue beat, the market punished the stock sharply after earnings, indicating investors were disappointed by the broader outlook or not convinced the growth story is enough to re-rate the shares. Article Title
• Negative Sentiment: JPMorgan cut its price target from $160 to $130 and maintained only a neutral rating, reinforcing a more cautious view on near-term upside. Article Title

Institutional Investors Weigh In On CDW

Institutional investors and hedge funds have recently modified their holdings of the company. Root Financial Partners LLC acquired a new position in CDW during the 3rd quarter worth about $26,000. Hollencrest Capital Management lifted its stake in CDW by 909.1% during the 1st quarter. Hollencrest Capital Management now owns 222 shares of the information technology services provider’s stock worth $27,000 after acquiring an additional 200 shares in the last quarter. Quent Capital LLC acquired a new position in CDW during the 3rd quarter worth about $57,000. eCIO Inc. acquired a new position in CDW during the 4th quarter worth about $61,000. Finally, Covestor Ltd lifted its stake in CDW by 87.9% during the 3rd quarter. Covestor Ltd now owns 483 shares of the information technology services provider’s stock worth $77,000 after acquiring an additional 226 shares in the last quarter. Hedge funds and other institutional investors own 93.15% of the company’s stock.

CDW Trading Down 4.9%

The company has a 50 day moving average of $125.02 and a 200-day moving average of $134.26. The company has a debt-to-equity ratio of 1.81, a quick ratio of 1.10 and a current ratio of 1.16. The stock has a market cap of $13.39 billion, a price-to-earnings ratio of 12.75, a price-to-earnings-growth ratio of 1.52 and a beta of 1.04.

CDW (NASDAQ:CDW) last posted its earnings results on Wednesday, May 6th. The information technology services provider reported $2.28 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.28. CDW had a return on equity of 49.67% and a net margin of 4.70%.The firm had revenue of $5.68 billion for the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the prior year, the company earned $2.15 EPS. CDW’s revenue was up 9.2% on a year-over-year basis. On average, research analysts anticipate that CDW Corporation will post 10.01 earnings per share for the current year.

CDW Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Monday, May 25th will be paid a dividend of $0.63 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $2.52 annualized dividend and a yield of 2.4%. CDW’s dividend payout ratio is presently 31.15%.

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.