Traders Buy High Volume of CDW Call Options (NASDAQ:CDW)

CDW Corporation (NASDAQ:CDW) was the recipient of some unusual options trading on Wednesday. Traders bought 3,680 call options on the company. This represents an increase of 2,244% compared to the typical daily volume of 157 call options.

Insiders Place Their Bets

In other CDW news, insider Sona Chawla sold 7,400 shares of the stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $146.17, for a total transaction of $1,081,658.00. Following the transaction, the insider owned 28,110 shares in the company, valued at approximately $4,108,838.70. This represents a 20.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.90% of the company’s stock.

Institutional Trading of CDW

A number of hedge funds have recently made changes to their positions in the company. Marshall Wace LLP grew its position in shares of CDW by 245.7% during the second quarter. Marshall Wace LLP now owns 168,452 shares of the information technology services provider’s stock worth $30,084,000 after buying an additional 119,719 shares in the last quarter. DNB Asset Management AS boosted its stake in CDW by 733.9% during the 2nd quarter. DNB Asset Management AS now owns 25,641 shares of the information technology services provider’s stock valued at $4,579,000 after acquiring an additional 22,566 shares during the last quarter. SG Americas Securities LLC boosted its stake in CDW by 1,622.9% during the 2nd quarter. SG Americas Securities LLC now owns 202,238 shares of the information technology services provider’s stock valued at $36,118,000 after acquiring an additional 190,500 shares during the last quarter. TD Private Client Wealth LLC grew its holdings in CDW by 781.3% during the 2nd quarter. TD Private Client Wealth LLC now owns 2,732 shares of the information technology services provider’s stock worth $488,000 after acquiring an additional 2,422 shares in the last quarter. Finally, Crescent Grove Advisors LLC increased its position in shares of CDW by 12.6% in the 2nd quarter. Crescent Grove Advisors LLC now owns 160,740 shares of the information technology services provider’s stock worth $28,707,000 after purchasing an additional 18,009 shares during the last quarter. Hedge funds and other institutional investors own 93.15% of the company’s stock.

Key Headlines Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Analysts still view CDW favorably overall — the consensus recommendation is a “Moderate Buy,” supporting medium-term demand for the stock. CDW Corporation (NASDAQ:CDW) Given Consensus Recommendation of “Moderate Buy” by Analysts
• Positive Sentiment: Business partnership: Geotab and CDWare announced an integrated telematics solution for ready‑mix fleets — a niche commercial win that expands CDW-related services exposure and may support revenue in vertical software/solutions. Geotab and CDWare Partner to Deliver Ready-Mix Telematics Solution
• Neutral Sentiment: Corporate calendar: CDW scheduled its Q4 and full‑year 2025 results call for Feb. 4 — an event that could drive short‑term volatility depending on guidance and margins. Management will post slides and host a webcast. CDW to Announce Fourth Quarter and Full Year 2025 Results on February 4
• Negative Sentiment: Analyst downward moves: Citigroup cut CDW’s price target to $148 and put a “neutral” rating in a note, trimming near‑term upside expectations and likely pressuring the stock. CDW price target lowered by Citigroup (Benzinga)
• Negative Sentiment: Sector headwinds: Reports show U.S. IT hardware stocks sliding amid economic uncertainty — a sector-wide pullback that can weigh on CDW given its hardware/distribution exposure. U.S. IT Hardware Stocks Slide Amid Economic Uncertainty
• Negative Sentiment: Relative weakness: Coverage noted CDW underperformed peers recently, suggesting investors are rotating away from the name within the group. CDW Corp. stock underperforms Tuesday when compared to competitors
• Negative Sentiment: Institutional/insider flows: Recent data show significant institutional reductions by several large funds and at least one insider sale, which can amplify downward pressure on the stock. Quiver Quantitative: New Analyst Forecast and institutional activity

CDW Trading Up 2.4%

Shares of CDW stock traded up $3.00 during trading hours on Wednesday, hitting $127.76. The company’s stock had a trading volume of 253,492 shares, compared to its average volume of 1,390,373. The business has a fifty day moving average of $139.84 and a 200 day moving average of $155.41. CDW has a 1-year low of $124.00 and a 1-year high of $222.92. The company has a quick ratio of 1.30, a current ratio of 1.39 and a debt-to-equity ratio of 2.21. The company has a market capitalization of $16.63 billion, a PE ratio of 16.14, a P/E/G ratio of 1.72 and a beta of 1.08.

CDW (NASDAQ:CDW) last announced its quarterly earnings results on Tuesday, November 4th. The information technology services provider reported $2.71 earnings per share for the quarter, topping analysts’ consensus estimates of $2.62 by $0.09. CDW had a net margin of 4.76% and a return on equity of 51.89%. The firm had revenue of $5.74 billion during the quarter, compared to analysts’ expectations of $5.75 billion. As a group, equities analysts forecast that CDW will post 9.41 EPS for the current year.

CDW Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Tuesday, November 25th were issued a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Tuesday, November 25th. This is an increase from CDW’s previous quarterly dividend of $0.63. CDW’s dividend payout ratio (DPR) is 31.82%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Evercore ISI restated an “outperform” rating and issued a $180.00 price objective on shares of CDW in a report on Tuesday. Citigroup reduced their target price on shares of CDW from $160.00 to $148.00 and set a “neutral” rating for the company in a research report on Tuesday. Morgan Stanley downgraded shares of CDW from an “overweight” rating to an “equal weight” rating and decreased their price target for the stock from $177.00 to $141.00 in a research note on Tuesday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CDW in a research note on Thursday, October 30th. Finally, Barclays cut their price objective on shares of CDW from $176.00 to $148.00 and set an “equal weight” rating for the company in a report on Wednesday, November 5th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $171.00.

CDW Company Profile

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.