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

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

CDW Stock Performance

CDW stock opened at $188.70 on Tuesday. CDW has a 1-year low of $168.43 and a 1-year high of $263.37. The firm has a market cap of $25.15 billion, a P/E ratio of 23.07, a P/E/G ratio of 4.91 and a beta of 1.01. The company has a current ratio of 1.40, a quick ratio of 1.28 and a debt-to-equity ratio of 2.39. The firm has a 50-day moving average of $178.95 and a 200-day moving average of $204.97.

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

CDW Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 10th. Shareholders of record on Monday, November 25th were issued a $0.625 dividend. The ex-dividend date 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 yield of 1.32%. CDW’s dividend payout ratio is 30.56%.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on CDW shares. Redburn Atlantic started coverage on CDW in a research report on Friday, November 15th. They set a “buy” rating and a $230.00 price target on the stock. Morgan Stanley upped their target price on CDW from $190.00 to $193.00 and gave the stock an “equal weight” rating in a research note on Monday, December 16th. JPMorgan Chase & Co. downgraded shares of CDW from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $260.00 to $235.00 in a research note on Monday, October 28th. Barclays cut their price objective on shares of CDW from $229.00 to $201.00 and set an “equal weight” rating for the company in a research note on Thursday, October 31st. Finally, UBS Group decreased their target price on shares of CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research report on Tuesday, January 7th. Four research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $239.33.

Institutional Investors Weigh In On CDW

Several institutional investors and hedge funds have recently modified their holdings of the stock. Janney Montgomery Scott LLC increased its position in shares of CDW by 0.9% during the fourth quarter. Janney Montgomery Scott LLC now owns 38,893 shares of the information technology services provider’s stock valued at $6,769,000 after buying an additional 348 shares during the period. Atomi Financial Group Inc. boosted its position in CDW by 9.5% during the 4th quarter. Atomi Financial Group Inc. now owns 1,370 shares of the information technology services provider’s stock valued at $238,000 after acquiring an additional 119 shares in the last quarter. Perpetual Ltd grew its holdings in shares of CDW by 14.6% during the 4th quarter. Perpetual Ltd now owns 801,516 shares of the information technology services provider’s stock worth $139,496,000 after acquiring an additional 102,004 shares during the period. Atwood & Palmer Inc. raised its position in shares of CDW by 0.4% in the 4th quarter. Atwood & Palmer Inc. now owns 157,303 shares of the information technology services provider’s stock worth $27,377,000 after acquiring an additional 559 shares in the last quarter. Finally, UMB Bank n.a. lifted its stake in shares of CDW by 8.0% in the 4th quarter. UMB Bank n.a. now owns 2,065 shares of the information technology services provider’s stock valued at $359,000 after purchasing an additional 153 shares during the period. 93.15% of the stock is owned by hedge funds and other institutional investors.

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.