Morgan Stanley Increases CDW (NASDAQ:CDW) Price Target to $188.00


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CDW (NASDAQ:CDW) had its price objective upped by Morgan Stanley from $164.00 to $188.00 in a report issued on Thursday, The Fly reports. The brokerage currently has an “overweight” rating on the information technology services provider’s stock. Morgan Stanley’s price objective would indicate a potential upside of 10.38% from the stock’s previous close.

Several other equities research analysts have also recently weighed in on the company. Zacks Investment Research upgraded CDW from a “hold” rating to a “buy” rating and set a $162.00 target price for the company in a report on Monday, March 8th. Citigroup increased their target price on CDW from $145.00 to $175.00 and gave the company a “buy” rating in a report on Thursday, February 11th. Credit Suisse Group increased their target price on CDW from $150.00 to $175.00 and gave the company an “outperform” rating in a report on Thursday, February 11th. Finally, William Blair restated an “outperform” rating on shares of CDW in a report on Wednesday, February 10th. One analyst has rated the stock with a sell rating, one has issued a hold rating and six have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $152.50.

CDW opened at $170.32 on Thursday. The stock has a 50-day moving average price of $160.37 and a 200-day moving average price of $138.94. CDW has a 12-month low of $93.75 and a 12-month high of $172.79. The company has a current ratio of 1.50, a quick ratio of 1.33 and a debt-to-equity ratio of 3.12. The stock has a market capitalization of $24.01 billion, a P/E ratio of 33.59, a PEG ratio of 1.60 and a beta of 1.10.

CDW (NASDAQ:CDW) last posted its quarterly earnings data on Tuesday, February 9th. The information technology services provider reported $1.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.51 by $0.31. CDW had a return on equity of 88.43% and a net margin of 4.08%. The firm had revenue of $4.96 billion during the quarter, compared to analysts’ expectations of $4.38 billion. During the same period in the prior year, the business earned $1.57 EPS. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. On average, equities research analysts predict that CDW will post 6.08 EPS for the current year.

CDW declared that its board has approved a share repurchase plan on Wednesday, February 10th that allows the company to buyback $1.25 billion in shares. This buyback authorization allows the information technology services provider to reacquire up to 5.6% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

In other news, insider Frederick J. Kulevich sold 2,500 shares of the stock in a transaction that occurred on Tuesday, February 16th. The stock was sold at an average price of $154.78, for a total value of $386,950.00. Following the completion of the transaction, the insider now owns 15,478 shares of the company’s stock, valued at approximately $2,395,684.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Christina M. Corley sold 3,500 shares of the stock in a transaction that occurred on Tuesday, March 16th. The stock was sold at an average price of $162.13, for a total value of $567,455.00. Following the completion of the transaction, the insider now directly owns 44,235 shares of the company’s stock, valued at approximately $7,171,820.55. The disclosure for this sale can be found here. Insiders have sold a total of 9,500 shares of company stock valued at $1,421,480 in the last ninety days. 1.33% of the stock is currently owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new position in CDW in the 4th quarter worth $205,404,000. Mawer Investment Management Ltd. raised its holdings in CDW by 45.9% during the fourth quarter. Mawer Investment Management Ltd. now owns 2,847,959 shares of the information technology services provider’s stock valued at $375,333,000 after acquiring an additional 895,959 shares during the period. Alliancebernstein L.P. raised its holdings in CDW by 14.8% during the fourth quarter. Alliancebernstein L.P. now owns 5,159,012 shares of the information technology services provider’s stock valued at $679,906,000 after acquiring an additional 665,708 shares during the period. Select Equity Group L.P. raised its holdings in CDW by 8.2% during the fourth quarter. Select Equity Group L.P. now owns 7,460,355 shares of the information technology services provider’s stock valued at $983,200,000 after acquiring an additional 565,290 shares during the period. Finally, Wedge Capital Management L L P NC raised its holdings in CDW by 10,701.0% during the fourth quarter. Wedge Capital Management L L P NC now owns 541,887 shares of the information technology services provider’s stock valued at $71,415,000 after acquiring an additional 536,870 shares during the period. Hedge funds and other institutional investors own 91.41% of the company’s stock.

About CDW

CDW Corporation provides integrated information technology (IT) solutions to business, government, education, and healthcare customers 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, as well as integrated IT solutions, including mobility, security, data center optimization, cloud computing, virtualization, and collaboration.

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Analyst Recommendations for CDW (NASDAQ:CDW)

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