On May 13th, 2023, it was reported that Foyston Gordon & Payne Inc had expanded its holdings in CDW Co. (NASDAQ:CDW) by a staggering 52.3% during the previous quarter, increasing their stock ownership from 22,627 shares to 34,465 shares and accounting for approximately 1.7% of their entire portfolio. The investment is valued at a stunning $6,155,000 according to the firm’s latest SEC filing.
Following this sharp investment in CDW’s stocks, the information technology services provider announced the Board of Directors’ approval of a massive $750 million stock repurchase plan on February 8th. This authorization allows up to 2.8% of outstanding shares to be bought back through open market purchases if management determines that they are undervalued.
That decision has been met with mixed ratings by equities analysts assessing the company’s potential growth and success rate. Stifel Nicolaus lowered its rating from $215 per share down to $205 per share but maintained a confident “buy” rating for prospective investors wagering on CDW’s success in the market. Credit Suisse Group similarly reduced its target price by $5 to reach a value of $190 per share following an overview of recent market trends.
However, Citigroup raised its target price from $210 per share to an impressive $230 per share and provided a “buy” rating in anticipation of CDW’s future successes following their repurchasing plan announcement – as one would expect after such noteworthy investing news.
It appears there is consensus on Wall Street that CDW is positioned for growth with its new initiatives and strategies; however, opinions vary on just how successful those initiatives will prove in today’s increasingly competitive tech markets.
Only time will tell if Foyston Gordon & Payne Inc’s investment gamble pays off or proves pricey misstep within their larger portfolio objectives, but any information on CDW is sure to garner attention from investors and Wall Street alike as trends continue to solidify.
CDW Co. Stock Sees Spike in Hedge Fund Interest and Insider Buying
CDW Co. Stock Seeing Increase in Hedge Fund Interest and Insider Buying
A recent flurry of activity among hedge funds has led to an increase in stake-taking in shares of CDW, the thriving information technology services provider located in Vernon Hills, Illinois. The hedge funds Aviva PLC, Foster & Motley Inc., Nicolet Advisory Services LLC, First National Advisers LLC, and Denali Advisors LLC have all added to or reduced their stakes in CDW. Aviva PLC saw the biggest spike, with a 112.3% increase in its stake during Q4 of 2022.
Additionally, on May 4th of this year, insider Christine A. Leahy purchased 3,050 shares of CDW stock at an average price of $163.62 per share for a total cost of $499,041.00. With this acquisition, Leahy now owns 68,622 shares valued at $11,227,931.64.
Despite some ups and downs over the past year – with shares trading between a low of $147.91 and high of $215 – the company’s overall financial picture is strong. In its most recent earnings report from February 2023, CDW reported better-than-expected EPS growth ($2.50 compared to an estimated $2.48) for Q1 along with a revenue figure of $5.44 billion versus a predicted $6.19 billion.
As it stands presently, 92.78% of CDW’s stock is owned by institutional investors and hedge funds; while corporate insiders only own approximately 0.85%.
The outlook for CDW looks positive based upon both its recent success and sustained support from key stakeholders within the industry as evidenced by hedge fund interest and insider buying trends leading up to May 13th’s datestamp on this article write-up.
Trading volume has also been encouraging leading up into mid-day Friday as 139,868 shares of CDW stock were exchanged, in contrast to its average daily volume of 912,385. Moving averages for CDW are favorable at present with a 50-day simple moving average of $182.87 and a 200-day simple moving average of $186.84.
At present CDW’s market capitalization stands at $22.79 billion; P/E ratio reads as 20.99, while P/E/G Ratio sits at 1.41 according to data released leading up to May 13th, 2023 per financial research analysts covering the company.
