As the world of technology continues to advance at an unprecedented rate, companies like CDW Co. remain at the forefront of providing innovative solutions for businesses across various industries. This sentiment was recently echoed by Cyndeo Wealth Partners LLC, a notable institutional investor that acquired 1,261 shares in CDW Co. during the fourth quarter of 2022. Valued at approximately $225,000, this strategic move reflects an ongoing confidence in the company’s potential for growth and development.
Just two months later, CDW Co. announced that its Board of Directors had authorized a share buyback program totaling $750.00 million on February 8th. This move allows the information technology services provider to repurchase up to 2.8% of its outstanding shares through open market purchases. Share buybacks are a common practice utilized by companies whose management believes their stocks are undervalued—this authorization indicates optimism from both executives and board members alike.
As of April 7th, NASDAQ CDW opened at $185.50 with a fifty-day moving average price of $198.02 and a two-hundred-day moving average price of $184.60. Despite changing market conditions and increasing competition within the industry, CDW Co.’s stock has maintained stability throughout the past year—ranging between a 52-week low of $147.91 and a high point of $215.00—demonstrating resilience amidst adversity.
CDW Co.’s debt-to-equity ratio stands at 3.66 with current and quick ratios at 1.33 and 1.17 respectively—a strong indication that the company is well-positioned for financial stability moving forward into fiscal year-end reports scheduled for May/June.
Additionally, based on data taken as per late December last year: The company possesses a total economic cushion when viewed comprehensively through an enterprise value to operating cash flow metric yielding around ~18.77, rather than being marketed purely through traditional earnings-based multiples such as the Price-to-Earnings ratio.
At a market capitalization of $25.15 billion and price-to-earnings-growth ratio of 1.49 with a beta of 1.11, CDW Co.’s financial solvency and potential for future growth makes it an attractive option for institutional investment firms like Cyndeo Wealth Partners LLC.
In conclusion, the strategic moves made by both CDW Co. and Cyndeo Wealth Partners LLC offer insight into the current climate surrounding the technology industry at large. As companies continue to innovate and adjust to changing market conditions, investors will look towards firms that demonstrate stability, resilience, and growth potential—with CDW Co. standing as an exemplary candidate that has proved itself time and again in this regard.
CDW Beats Q4 Earnings Estimate and Looks to Future Growth
On February 8th, 2023, CDW (NASDAQ:CDW), the leading technology solutions provider in North America and beyond, announced impressive results for Q4 of 2022. The company had an EPS of $2.50, beating out the consensus estimate of $2.48 by a mere two cents. It also reported revenue of $5.44 billion for the quarter, which was down 1.8% on the same quarter in the prior year.
Despite this fall in revenue, CDW remains favored by institutional investors and hedge funds alike. Vanguard Group Inc., which has an ownership stake worth over $2.8 billion dollars, increased its holding by 1.3% in the first quarter alone.
Furthermore, other institutional investors like Fiduciary Management Inc WI and Assenagon Asset Management SA have increased their stakes in CDW by over 12% and a colossal 677%, respectively.
In light of these recent developments and earnings reports, analysts believe that CDW is poised for astronomical growth in the coming years as well as a promising future in terms of stock price appreciation.
For instance, Credit Suisse Group increased their projected price target for CDW from $220 to $230 per share and gave the stock an “outperform” rating last month during their earnings conference call.
Finally, with a dividend payout ratio of only 29%, shareholders continue to receive consistent payouts from CDW’s long-term cash repatriation plan; most recently, a quarterly dividend payout of $0.59 was dispensed per share on Friday March 10th.
Analysts project that CDW will make tremendous gains again this year with an estimated EPS prediction of approximately $9.9 per share for fiscal year ending December 31st since becoming increasingly popular among wise investors seeking dependable returns through both dividends and appreciation in valuation.
Given these impressive financial statistics and support from respected firms across the investment spectrum, CDW is well-positioned for long-term growth and value creation over the years ahead.
