CDW (NASDAQ:CDW) Trading Down 21% – What’s Next?

CDW Corporation (NASDAQ:CDW)’s share price traded down 21% on Wednesday . The stock traded as low as $109.56 and last traded at $108.1170. 593,783 shares were traded during trading, a decline of 64% from the average session volume of 1,649,275 shares. The stock had previously closed at $136.80.

CDW News Roundup

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Revenue beat and strong demand tied to AI and cloud spending — CDW reported ~9.2% y/y sales growth as clients ramp spending on AI, cloud and infrastructure, which supports top-line momentum. CDW posts first-quarter revenue beat on strong IT demand amid AI, cloud boom
• Positive Sentiment: Board raised the quarterly cash dividend to $0.63 — a shareholder-friendly move that signals confidence in cash flow and supports yield-oriented investors. CDW Declares Quarterly Cash Dividend of $0.630 Per Share
• Neutral Sentiment: EPS roughly in line with consensus — some outlets show EPS of $2.28 matching estimates, while others flag a small miss vs. a slightly higher street number; net result is mixed investor interpretation. CDW (CDW) Meets Q1 Earnings Estimates
• Neutral Sentiment: Strategic hires and conference activity point to enterprise-services push — management moves and investor outreach suggest a longer-term shift toward higher‑value services. Analysis: CDW’s Hiring Of HPE’s Hang Tan Underscores Enterprise Services Ambitions
• Negative Sentiment: Margin pressure and operating‑profit contraction — gross and operating margins narrowed year‑over‑year (company reported lower gross margin and operating margin declines), which investors flagged as evidence of margin stress despite higher sales. CDW Stock Sinks To 52-Week Low – Here’s Why
• Negative Sentiment: Heavy intraday selling, large-volume outflows and notable institutional trimming amplified the decline — data shows significant volume and some big holders reducing positions, which accelerated the price drop. $CDW stock is down 20% today. Here’s what we see in our data.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Evercore reiterated an “outperform” rating and set a $180.00 price target on shares of CDW in a research note on Tuesday, January 20th. Morgan Stanley boosted their price target on CDW from $141.00 to $142.00 and gave the company an “equal weight” rating in a research note on Thursday, February 5th. Weiss Ratings reiterated a “hold (c-)” rating on shares of CDW in a research note on Friday, April 24th. UBS Group decreased their price objective on CDW from $190.00 to $162.00 and set a “buy” rating for the company in a report on Thursday, February 5th. Finally, Barclays decreased their price objective on CDW from $148.00 to $144.00 and set an “equal weight” rating for the company in a report on Thursday, February 5th. One 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 company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $155.43.

CDW Trading Down 20.3%

The firm has a market cap of $13.95 billion, a price-to-earnings ratio of 13.47, a PEG ratio of 1.86 and a beta of 1.04. The company has a fifty day moving average price of $125.61 and a 200-day moving average price of $134.85. The company has a current ratio of 1.18, a quick ratio of 1.10 and a debt-to-equity ratio of 1.77.

CDW (NASDAQ:CDW) last released its quarterly earnings results on Wednesday, May 6th. The information technology services provider reported $2.28 earnings per share for the quarter, hitting analysts’ consensus estimates of $2.28. The company had revenue of $5.68 billion during the quarter, compared to analysts’ expectations of $5.48 billion. CDW had a return on equity of 50.66% and a net margin of 4.76%.CDW’s quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.15 EPS. As a group, research analysts expect that CDW Corporation will post 10.01 EPS for the current year.

Hedge Funds Weigh In On CDW

A number of large investors have recently bought and sold shares of CDW. Jones Financial Companies Lllp raised its holdings in CDW by 316.0% in the 1st quarter. Jones Financial Companies Lllp now owns 4,896 shares of the information technology services provider’s stock worth $785,000 after purchasing an additional 3,719 shares during the period. Empowered Funds LLC raised its holdings in CDW by 1.2% in the 1st quarter. Empowered Funds LLC now owns 18,076 shares of the information technology services provider’s stock worth $2,897,000 after purchasing an additional 216 shares during the period. California State Teachers Retirement System raised its holdings in CDW by 0.6% in the 2nd quarter. California State Teachers Retirement System now owns 225,709 shares of the information technology services provider’s stock worth $40,309,000 after purchasing an additional 1,242 shares during the period. BI Asset Management Fondsmaeglerselskab A S raised its holdings in CDW by 1,339.7% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 49,380 shares of the information technology services provider’s stock worth $8,819,000 after purchasing an additional 45,950 shares during the period. Finally, State of Tennessee Department of Treasury raised its holdings in CDW by 17.7% in the 2nd quarter. State of Tennessee Department of Treasury now owns 40,927 shares of the information technology services provider’s stock worth $7,309,000 after purchasing an additional 6,143 shares during the period. Institutional investors and hedge funds own 93.15% of the company’s stock.

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.