CDW (NASDAQ:CDW) Shares Down 21% – Here’s Why

Shares of CDW Corporation (NASDAQ:CDW) dropped 21% during trading on Wednesday . The company traded as low as $109.56 and last traded at $108.1170. Approximately 593,783 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 1,649,275 shares. The stock had previously closed at $136.80.

Trending Headlines about 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

Analyst Ratings Changes

CDW has been the topic of a number of research analyst reports. JPMorgan Chase & Co. dropped their target price on shares of CDW from $160.00 to $130.00 and set a “neutral” rating on the stock in a research note on Thursday. Evercore reissued an “outperform” rating and set a $180.00 target price on shares of CDW in a research report on Tuesday, January 20th. Citigroup decreased their target price on shares of CDW from $150.00 to $123.00 and set a “neutral” rating for the company in a research report on Friday. Morgan Stanley increased their target price on shares of CDW from $141.00 to $142.00 and gave the company an “equal weight” rating in a research report on Thursday, February 5th. Finally, Barclays dropped their price target on CDW from $144.00 to $123.00 and set an “equal weight” rating on the stock in a research note on Thursday. One 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 stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $142.14.

CDW Trading Down 4.9%

The company has a debt-to-equity ratio of 1.81, a current ratio of 1.16 and a quick ratio of 1.10. The stock’s fifty day simple moving average is $125.02 and its 200-day simple moving average is $134.26. The firm has a market cap of $13.41 billion, a PE ratio of 12.75, a PEG ratio of 1.50 and a beta of 1.04.

CDW (NASDAQ:CDW) last issued 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 net margin of 4.70% and a return on equity of 49.67%. The firm had revenue of $5.68 billion during the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter last year, the company posted $2.15 earnings per share. The firm’s revenue was up 9.2% compared to the same quarter last year. On average, sell-side analysts forecast that CDW Corporation will post 10.01 earnings per share for the current year.

CDW Announces Dividend

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

Institutional Trading of CDW

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CDW. Root Financial Partners LLC acquired a new stake in shares of CDW in the third quarter valued at about $26,000. Hollencrest Capital Management grew its position in shares of CDW by 909.1% in the first quarter. Hollencrest Capital Management now owns 222 shares of the information technology services provider’s stock valued at $27,000 after purchasing an additional 200 shares during the period. Quent Capital LLC acquired a new stake in shares of CDW in the third quarter valued at about $57,000. eCIO Inc. acquired a new stake in shares of CDW in the fourth quarter valued at about $61,000. Finally, Covestor Ltd grew its position in shares of CDW by 87.9% in the third quarter. Covestor Ltd now owns 483 shares of the information technology services provider’s stock valued at $77,000 after purchasing an additional 226 shares during the period. Institutional investors and hedge funds own 93.15% of the company’s stock.

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.