Ohio-Based Institutional Investor &Strs Gains a New Stake in CDW Co.
Introduction
July 20, 2023 – In the first quarter of this year, Strs Ohio, an institutional investor, acquired a new stake in information technology services provider CDW Co. (NASDAQ:CDW), according to its recent filing with the Securities and Exchange Commission. This move highlights the investor’s confidence in CDW’s potential and its commitment to expanding its portfolio. Additionally, insider Christine A. Leahy made a significant purchase of CDW stocks on May 4th, further boosting investor sentiment. This article will analyze these recent developments and provide an overview of CDW’s financials as of July 2023.
Investor Confidence: Strs Ohio’s Share Acquisition
Strs Ohio recently announced its purchase of 8,210 shares of CDW Co., valued at approximately $1,600,000. With this acquisition, the institutional investor has demonstrated its strong belief in CDW’s growth trajectory and market position within the information technology services industry. The move also sends positive signals to other investors regarding the potential profitability of investing in CDW.
Insider Investment: Christine A. Leahy Adds to Her Holdings
Further bolstering confidence in CDW is insider Christine A. Leahy’s recent acquisition of 3,050 shares from the company. Purchased at an average price of $163.62 per share, representing an investment worth $499,041.00, this transaction demonstrates Leahy’s trust in the company’s future prospects.
Following this purchase, Leahy now holds a substantial amount of shares totaling 68,622 shares valued at $11,227,931.64. Such a significant investment by an insider suggests that those closest to the company have faith in its ability to generate long-term value for shareholders.
Financial Performance and Market Outlook
NASDAQ-listed CDW opened at $189.75 on the day of this report, reflecting a stable position amidst market fluctuations. The stock’s 50-day moving average price stands at $177.28, while the 200-day moving average is slightly higher at $185.69. These figures indicate that CDW has weathered short-term volatility and maintained strong support levels.
CDW Co., with its quick ratio of 1.15 and current ratio of 1.31, possesses sufficient liquidity to meet short-term obligations promptly.
The company’s debt-to-equity ratio of 3.66 indicates a conservative approach to debt utilization, allowing it to navigate economic uncertainties efficiently while supporting future growth initiatives.
CDW registered a 52-week low trading price of $147.91 and reached a high of $215.00 during this period, indicating strong investor interest in the stock.
With a solid market capitalization value of $25.58 billion and a relatively modest P/E ratio of 23.78 as of July 2023, CDW presents an attractive investment opportunity for those seeking exposure to the information technology services sector.
Moreover, CDW boasts an impressive price-to-earnings-growth (PEG) ratio of 1.60, which suggests that its shares are reasonably valued relative to its earnings growth potential.
Conclusion
As Strs Ohio acquires a noteworthy stake in CDW Co., institutional investor confidence in the firm is on the rise. Furthermore, insider Christine A. Leahy’s acquisition reinforces positive sentiment towards CDW’s future prospects within the information technology services industry.
Trading within a relatively stable price range despite market volatility, CDW continues to exhibit financial strength with solid liquidity ratios and conservative debt management practices.
With its sound financial footing and compelling market outlook underpinned by steady growth potential, CDW Co.’s appeal as an investment option remains intact for investors seeking exposure to an established player in the information technology services sector.
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CDW Receives Attention from Institutional Investors and Hedge Funds
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CDW’s Growth Potential Attracts Institutional Investors and Hedge Funds
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CDW (NASDAQ:CDW), the information technology services provider, has recently attracted the attention of various institutional investors and hedge funds. One such investor is Securian Asset Management Inc., which increased its stake in CDW by 1.8% during the first quarter. The company now owns 11,393 shares of CDW’s stock, valued at $2,220,000, after acquiring an additional 200 shares in the last quarter. This move suggests that Securian Asset Management Inc. sees potential in CDW and believes it to be a valuable investment.
Another hedge fund that modified its holdings of CDW is First Trust Direct Indexing L.P., which lifted its stake in CDW by 10.7% during the same period. First Trust Direct Indexing L.P. now owns 1,753 shares of CDW’s stock valued at $342,000 after acquiring an additional 169 shares in the last quarter. This increase in holdings indicates that First Trust Direct Indexing L.P. also recognizes CDW as a promising investment opportunity.
Additionally, State of New Jersey Common Pension Fund D lifted its stake in CDW by 1.1% during the first quarter. The pension fund now owns 74,676 shares of CDW’s stock valued at $14,554,000 after acquiring an additional 842 shares in the last quarter. Similarly, Jennison Associates LLC increased its stake in CDW by an astonishing 2,849.1% during the same period. The company now owns 56,859 shares of CDW’s stock valued at $11,081,000 after acquiring an additional 54,931 shares recently.
Lastly, Tower Bridge Advisors also saw potential in CDW and increased its position by 11.8% during the first quarter. The company now owns 12,300 shares of CDW’s stock valued at $2,397,000 after purchasing an additional 1,300 shares last quarter. Overall, 94.73% of CDW’s stock is currently owned by institutional investors, highlighting the confidence they have in the company’s future prospects.
Several equities research analysts have also recently issued reports on CDW. Stifel Nicolaus decreased their target price on CDW from $215.00 to $205.00 and maintained a “buy” rating for the company in a research report released on April 19th. Citigroup initiated coverage on CDW with a “buy” rating and set a price target of $205.00 for the company on June 29th. Credit Suisse Group decreased their price target on CDW from $195.00 to $190.00 in a research note issued on May 4th.
Furthermore, StockNews.com initiated coverage on CDW and assigned it a “hold” rating on May 18th. Barclays also initiated coverage on CDW, giving it an “equal weight” rating and setting a target price of $198.00 per share for July’s report . With three investment analysts issuing hold ratings and six issuing buy ratings, Bloomberg data indicates that CDW has an average rating of “Moderate Buy” and a consensus target price of $201.00.
In other news related to CDW, Christine A. Leahy, an insider at the firm, purchased 3,050 shares of the company’s stock in a transaction that occurred on May 4th with an average price of $163.62 per share totaling approximately $499,041. Following this purchase, Leahy now owns 68,622 shares of the company valued at approximately $11,22793114 according to SEC filing .
CDW last posted its quarterly earnings data on May 3rd and reported earnings per share (EPS) of $1.99 for the quarter compared to the consensus estimate of $1.91, beating the forecast by 0.08 cents per share. The company had a return on equity of 90.20% and a net margin of 4.78%. Furthermore, CDW generated $5.10 billion in revenue for the quarter, in line with analysts’ estimates.
On June 13th, CDW announced its quarterly dividend, paying investors of record on May 25th a dividend of $0.59 per share. This represents an annualized dividend payout ratio (DPR) of $2.36 and yields a return of 1.24%. The ex-dividend date was May 24th.
Looking ahead, it is anticipated that CDW Co. will post earnings per share (EPS) amounting to approximately $9.05 for the current year according to equities research analysts.
In conclusion, CDW has attracted attention from various institutional investors and hedge funds due to its promising growth potential within the information technology services sector. Analysts have issued both buy and hold ratings, reflecting varying opinions regarding the company’s future performance in today’s dynamic market landscape. With recent insider investment and positive EPS reports, CDW seems poised to deliver strong returns for investors in the coming quarters as it continues to establish
