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

CDW Co. (NASDAQ:CDW) was the recipient of a large increase in short interest in the month of December. As of December 31st, there was short interest totalling 2,880,000 shares, an increase of 8.7% from the December 15th total of 2,650,000 shares. Currently, 2.2% of the company’s stock are short sold. Based on an average daily volume of 1,320,000 shares, the short-interest ratio is presently 2.2 days.

CDW Stock Up 0.5 %

Shares of NASDAQ:CDW traded up $0.91 during midday trading on Monday, hitting $188.70. 963,441 shares of the company’s stock were exchanged, compared to its average volume of 1,002,276. CDW has a 12 month low of $168.43 and a 12 month high of $263.37. The company has a market cap of $25.15 billion, a PE ratio of 23.07, a price-to-earnings-growth ratio of 4.91 and a beta of 1.01. The company has a debt-to-equity ratio of 2.39, a current ratio of 1.40 and a quick ratio of 1.28. The stock has a 50 day moving average price of $179.13 and a 200-day moving average price of $205.18.

CDW (NASDAQ:CDW) last issued its quarterly earnings data on Wednesday, October 30th. The information technology services provider reported $2.63 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.68 by ($0.05). CDW had a return on equity of 58.31% and a net margin of 5.33%. The firm had revenue of $5.52 billion during the quarter, compared to the consensus estimate of $5.72 billion. During the same period in the previous year, the company posted $2.60 earnings per share. The company’s revenue for the quarter was down 2.0% on a year-over-year basis. On average, sell-side analysts anticipate that CDW will post 8.99 EPS for the current fiscal year.

CDW Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 10th. Shareholders of record on Monday, November 25th were paid a $0.625 dividend. The ex-dividend date of this dividend was Monday, November 25th. This is a positive change from CDW’s previous quarterly dividend of $0.62. This represents a $2.50 annualized dividend and a dividend yield of 1.32%. CDW’s payout ratio is presently 30.56%.

Analyst Ratings Changes

CDW has been the topic of several recent analyst reports. JPMorgan Chase & Co. lowered shares of CDW from an “overweight” rating to a “neutral” rating and lowered their price objective for the stock from $260.00 to $235.00 in a research note on Monday, October 28th. UBS Group dropped their price objective on CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research note on Tuesday, January 7th. Redburn Atlantic initiated coverage on CDW in a research note on Friday, November 15th. They set a “buy” rating and a $230.00 target price for the company. Citigroup cut CDW from a “buy” rating to a “neutral” rating and dropped their price target for the company from $250.00 to $245.00 in a research note on Tuesday, October 1st. Finally, Morgan Stanley lifted their price objective on shares of CDW from $190.00 to $193.00 and gave the stock an “equal weight” rating in a research report on Monday, December 16th. Four research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $239.33.

Institutional Investors Weigh In On CDW

Several large investors have recently added to or reduced their stakes in the company. Massachusetts Financial Services Co. MA purchased a new stake in shares of CDW in the third quarter worth about $416,111,000. Janus Henderson Group PLC lifted its stake in CDW by 7,029.1% in the 3rd quarter. Janus Henderson Group PLC now owns 1,466,597 shares of the information technology services provider’s stock worth $331,891,000 after purchasing an additional 1,446,025 shares in the last quarter. Holocene Advisors LP bought a new position in CDW in the 3rd quarter valued at $172,217,000. Perpetual Ltd purchased a new position in shares of CDW during the 3rd quarter valued at $158,300,000. Finally, Canada Pension Plan Investment Board raised its position in CDW by 2,045.4% during the second quarter. Canada Pension Plan Investment Board now owns 294,302 shares of the information technology services provider’s stock valued at $65,877,000 after purchasing an additional 280,584 shares in the last quarter. Hedge funds and other institutional investors own 93.15% of the company’s stock.

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.