CDW Corporation $CDW Stock: Sumitomo Mitsui Trust Group Inc. Reduces Stake

Sumitomo Mitsui Trust Group Inc. trimmed its position in shares of CDW Corporation (NASDAQ:CDW) by 4.7% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 309,389 shares of the information technology services provider’s stock after selling 15,105 shares during the quarter. Sumitomo Mitsui Trust Group Inc.’s holdings in CDW were worth $39,651,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of CDW in the second quarter valued at approximately $2,143,082,000. Pzena Investment Management LLC bought a new position in shares of CDW in the 2nd quarter worth about $371,135,000. Jupiter Topco LLC acquired a new position in CDW in the second quarter valued at approximately $300,073,000. Alyeska Investment Group L.P. increased its stake in shares of CDW by 197.1% in the 2nd quarter. Alyeska Investment Group L.P. now owns 1,854,952 shares of the information technology services provider’s stock valued at $260,880,000 after acquiring an additional 1,230,517 shares in the last quarter. Finally, Bank of America Corp DE acquired a new position in shares of CDW during the 2nd quarter valued at $255,058,000. 93.15% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on CDW shares. Morgan Stanley increased their target price on shares of CDW from $170.00 to $171.00 and gave the stock an “overweight” rating in a research note on Thursday, August 6th. Barclays decreased their price target on shares of CDW from $150.00 to $148.00 and set an “equal weight” rating for the company in a research note on Monday, September 21st. Weiss Ratings upgraded shares of CDW from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 25th. Finally, Citigroup increased their price objective on shares of CDW from $123.00 to $145.00 and gave the stock a “neutral” rating in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $150.12.

CDW Price Performance

Shares of NASDAQ:CDW opened at $168.75 on Thursday. CDW Corporation has a twelve month low of $97.12 and a twelve month high of $172.47. The stock’s 50 day moving average is $148.23 and its 200-day moving average is $133.47. The company has a quick ratio of 1.05, a current ratio of 1.17 and a debt-to-equity ratio of 1.97. The firm has a market capitalization of $21.10 billion, a price-to-earnings ratio of 20.28, a PEG ratio of 1.96 and a beta of 0.92.

CDW (NASDAQ:CDW) last posted its quarterly earnings results on Wednesday, November 4th. The information technology services provider reported $3.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.98 by $0.28. The business had revenue of $6.75 billion during the quarter, compared to the consensus estimate of $6.19 billion. CDW had a net margin of 4.60% and a return on equity of 50.61%. CDW’s revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the firm posted $2.71 EPS. Sell-side analysts forecast that CDW Corporation will post 10.33 EPS for the current fiscal year.

CDW Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 25th will be issued a dividend of $0.68 per share. This is an increase from CDW’s previous quarterly dividend of $0.63. This represents a $2.72 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Wednesday, November 25th. CDW’s dividend payout ratio is 30.29%.

Insider Activity at CDW

In other news, insider Elizabeth Connelly sold 26,695 shares of the business’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the completion of the sale, the insider directly owned 34,215 shares of the company’s stock, valued at $4,708,668.30. The trade was a 43.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.82% of the stock is currently owned by insiders.

CDW News Summary

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported adjusted earnings of $3.26 per share, above analyst expectations of about $2.98, and revenue of $6.755 billion versus estimates of roughly $6.19 billion. Revenue grew 17.7% year over year. Article: CDW Stock Jumps as AI Infrastructure Demand Drives Q3 Beat
• Positive Sentiment: Reports attributed the strong quarter to enterprise AI adoption and broad-based demand. The earnings call also highlighted record growth and the company’s outlook, supporting investor confidence in demand. Article: CDW Earnings Call Highlights Record Growth and Outlook
• Positive Sentiment: The board declared a quarterly dividend of $0.68 per share, up 7.9% from $0.63. The higher payout adds to shareholder returns and signals confidence in cash generation. Article: CDW Raises Quarterly Dividend by 7.9%
• Negative Sentiment: Despite the sales and earnings beat, margin compression and rising expenses were cited as risks that investors will monitor for their impact on future profitability. Article: CDW Q3 Earnings Beat Despite Margin Compression

About CDW

CDW Corporation (NASDAQ: CDW) is a provider of technology products and services for business, government, education and healthcare organizations. The company helps customers plan, procure, implement and manage information technology solutions from leading hardware, software and cloud vendors.

Its offerings include computers, servers, networking equipment, data-storage systems, cybersecurity products, collaboration tools, software licensing and cloud solutions. CDW also provides professional and managed services, including technology consulting, infrastructure deployment, cloud management, security support and lifecycle services.

Founded in 1984 as Computer Discount Warehouse, CDW serves customers primarily in the United States, Canada and the United Kingdom through sales teams, digital channels and technology partnerships.