CDW Corporation [NASDAQ: CDW] surged by $3.67 during the normal trading session on Thursday and reaching a high of $115.56 during the day while it closed the day at $114.84. The company report on August 10, 2020 that CDW Corporation Announces Upsizing and Pricing of Registered Offering of $700 Million of Senior Notes due 2029.
CDW Corporation (NASDAQ: CDW), a leading multi-brand technology solutions provider to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced that its wholly owned subsidiaries CDW LLC and CDW Finance Corporation (together, the “Issuers”) have priced an offering of $700 million in aggregate principal amount of 3.25% senior notes due 2029 (the “Notes”), representing an increase of $70 million in aggregate principal amount from the initially proposed offering size, in an offering registered under the Securities Act of 1933, as amended (the “Note Offering”). The Notes were priced at 100 % of par. The sale of the Notes is expected to be completed on August 13, 2020, subject to customary closing conditions.
The Issuers intend to use the proceeds from the Note Offering (a) to fund the redemption of all of their outstanding $600 million aggregate principal amount of Senior Notes due 2025 (the “2025 Senior Notes”) at a redemption price of 103.75% of the principal amount redeemed plus accrued and unpaid interest to the date of redemption and (b) to pay fees and expenses related to such redemption and the Note Offering. The remaining proceeds will be used for general corporate purposes. The Issuers have issued a conditional notice of redemption to holders of the 2025 Senior Notes. The redemption of the 2025 Senior Notes is contingent upon the pricing and closing of the Note Offering.
CDW Corporation stock has also gained 2.24% of its value over the past 7 days. However, CDW stock has inclined by 3.54% in the 3 months of the year. Over the past six months meanwhile, it has gained 0.54% and lost -19.60% year-on date.
The market cap for CDW stock reached $16.56 billion, with 142.40 million shares outstanding and 141.35 million shares in the current float. Compared to the average trading volume of 854.02K shares, CDW reached a trading volume of 1177825 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about CDW Corporation [CDW]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CDW shares is $131.88 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CDW stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for CDW Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 12, 2020. The new note on the price target was released on June 29, 2020, representing the official price target for CDW Corporation stock. Previously, the target price had yet another raise to $120, while Morgan Stanley analysts kept a Equal-Weight rating on CDW stock.
The Average True Range (ATR) for CDW Corporation is set at 2.91, with the Price to Sales ratio for CDW stock in the period of the last 12 months amounting to 0.91. The Price to Book ratio for the last quarter was 15.50, with the Price to Cash per share for the same quarter was set at 6.65. Price to Free Cash Flow for CDW in the course of the last twelve months was 26.25 with Quick ratio for the last quarter at 1.30.
CDW stock trade performance evaluation
CDW Corporation [CDW] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.24. With this latest performance, CDW shares dropped by -0.69% in over the last four-week period, additionally plugging by 0.54% over the last 6 months – not to mention a rise of 2.78% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CDW stock in for the last two-week period is set at 51.79, with the RSI for the last a single of trading hit 55.66, and the three-weeks RSI is set at 51.12 for CDW Corporation [CDW]. The present Moving Average for the last 50 days of trading for this stock 114.94, while it was recorded at 112.32 for the last single week of trading, and 119.15 for the last 200 days.
CDW Corporation [CDW]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and CDW Corporation [CDW] shares currently have an operating margin of +6.29 and a Gross Margin at +16.86. CDW Corporation’s Net Margin is presently recorded at +4.09.
Return on Total Capital for CDW is now 23.91, given the latest momentum, and Return on Invested Capital for the company is 17.27. Return on Equity for this stock inclined to 76.14, with Return on Assets sitting at 9.72. When it comes to the capital structure of this company, CDW Corporation [CDW] has a Total Debt to Total Equity ratio set at 407.00. Additionally, CDW Total Debt to Total Capital is recorded at 80.28, with Total Debt to Total Assets ending up at 48.86. Long-Term Debt to Equity for the company is recorded at 355.55, with the Long-Term Debt to Total Capital now at 70.13.
Reflecting on the efficiency of the workforce at the company, CDW Corporation [CDW] managed to generate an average of $74,424 per employee. Receivables Turnover for the company is 5.65 with a Total Asset Turnover recorded at a value of 2.38.CDW Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.50.
Earnings per share (EPS) analysis for CDW Corporation [CDW] stock
With the latest financial reports released by the company, CDW Corporation posted 1.7/share EPS, while the average EPS was predicted by analysts to be reported at 1.58/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 7.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CDW. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for CDW Corporation go to 9.10%.
CDW Corporation [CDW]: Insider Ownership positions
There are presently around $15,063 million, or 93.30% of CDW stock, in the hands of institutional investors. The top three institutional holders of CDW stocks are: VANGUARD GROUP INC with ownership of 16,620,890, which is approximately -4.287% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 10,320,695 shares of the stock with an approximate value of $1.19 billion in CDW stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $867.56 million in CDW stock with ownership of nearly 27.033% of the company’s market capitalization.
Positions in CDW Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 311 institutional holders increased their position in CDW Corporation [NASDAQ:CDW] by around 12,751,762 shares. Additionally, 323 investors decreased positions by around 12,937,447 shares, while 86 investors held positions by with 105,480,019 shares. The mentioned changes placed institutional holdings at 131,169,228 shares, according to the latest SEC report filing. CDW stock had 84 new institutional investments in for a total of 2,837,445 shares, while 54 institutional investors sold positions of 832,802 shares during the same period.