Short Interest in CDW Co. (NASDAQ:CDW) Expands By 24.0%

CDW Co. (NASDAQ:CDW) was the target of a significant increase in short interest in the month of February. As of February 28th, there was short interest totalling 3,460,000 shares, an increase of 24.0% from the February 13th total of 2,790,000 shares. Approximately 2.6% of the company’s shares are short sold. Based on an average trading volume of 1,330,000 shares, the days-to-cover ratio is currently 2.6 days.

Institutional Trading of CDW

Several large investors have recently made changes to their positions in CDW. Lansforsakringar Fondforvaltning AB publ purchased a new position in shares of CDW during the 4th quarter valued at approximately $293,000. Dogwood Wealth Management LLC increased its stake in shares of CDW by 37.3% in the 4th quarter. Dogwood Wealth Management LLC now owns 3,013 shares of the information technology services provider’s stock valued at $524,000 after purchasing an additional 819 shares in the last quarter. Siemens Fonds Invest GmbH raised its holdings in CDW by 483.9% in the 4th quarter. Siemens Fonds Invest GmbH now owns 8,571 shares of the information technology services provider’s stock worth $1,492,000 after purchasing an additional 7,103 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in CDW during the fourth quarter worth approximately $23,999,000. Finally, Azzad Asset Management Inc. ADV grew its holdings in CDW by 41.7% in the fourth quarter. Azzad Asset Management Inc. ADV now owns 7,903 shares of the information technology services provider’s stock valued at $1,375,000 after purchasing an additional 2,325 shares during the period. 93.15% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have issued reports on CDW shares. Morgan Stanley boosted their target price on CDW from $193.00 to $201.00 and gave the company an “equal weight” rating in a research report on Thursday, February 6th. Barclays increased their target price on CDW from $201.00 to $223.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 6th. Finally, UBS Group lowered their target price on shares of CDW from $233.00 to $220.00 and set a “buy” rating for the company in a research note on Tuesday, January 7th. Four investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $242.67.

CDW Stock Performance

Shares of CDW opened at $168.80 on Monday. The company has a current ratio of 1.35, a quick ratio of 1.24 and a debt-to-equity ratio of 2.38. The firm has a market cap of $22.37 billion, a PE ratio of 21.22, a P/E/G ratio of 3.21 and a beta of 1.01. CDW has a 12 month low of $162.84 and a 12 month high of $263.37. The stock has a fifty day moving average price of $185.56 and a 200-day moving average price of $194.86.

CDW (NASDAQ:CDW) last issued its quarterly earnings results on Wednesday, February 5th. The information technology services provider reported $2.40 earnings per share for the quarter, topping the consensus estimate of $2.33 by $0.07. CDW had a return on equity of 55.42% and a net margin of 5.13%. Equities research analysts predict that CDW will post 9.41 earnings per share for the current fiscal year.

CDW Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 25th were paid a $0.625 dividend. This represents a $2.50 annualized dividend and a dividend yield of 1.48%. The ex-dividend date of this dividend was Tuesday, February 25th. CDW’s payout ratio is 31.37%.

CDW announced that its Board of Directors has approved a stock repurchase plan on Wednesday, February 5th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the information technology services provider to purchase up to 2.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

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.