CDW Corp (NASDAQ: CDW)’s stock price has increased by 5.08 compared to its previous closing price of 192.99. However, the company has seen a 3.96% increase in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-05 that CDW’s 3Q24 results were disappointing, with revenue declining and guidance lowered. The company’s heavy exposure to hardware, which is facing weaker demand, is a headwind. As the market focuses on near-term growth, CDW’s valuation could face significant downside pressure.
Is It Worth Investing in CDW Corp (NASDAQ: CDW) Right Now?
CDW Corp (NASDAQ: CDW) has a price-to-earnings ratio that is above its average at 24.77x. The stock has a 36-month beta value of 1.05. Opinions on the stock are mixed, with 5 analysts rating it as a “buy,” 5 as “overweight,” 3 as “hold,” and 1 as “sell.”
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The public float for CDW is 132.75M, and at present, short sellers hold a 2.93% of that float. On November 07, 2024, the average trading volume of CDW was 912.60K shares.
CDW’s Market Performance
CDW stock saw a decrease of 3.96% in the past week, with a monthly decline of -9.31% and a quarterly a decrease of -4.48%. The volatility ratio for the week is 2.47%, and the volatility levels for the last 30 days are 2.18% for CDW Corp (CDW). The simple moving average for the past 20 days is -4.23% for CDW’s stock, with a -11.41% simple moving average for the past 200 days.
Analysts’ Opinion of CDW
Many brokerage firms have already submitted their reports for CDW stocks, with JP Morgan repeating the rating for CDW by listing it as a “Neutral.” The predicted price for CDW in the upcoming period, according to JP Morgan is $235 based on the research report published on October 28, 2024 of the current year 2024.
Citigroup, on the other hand, stated in their research note that they expect to see CDW reach a price target of $245, previously predicting the price at $250. The rating they have provided for CDW stocks is “Neutral” according to the report published on October 01st, 2024.
CDW Trading at -6.72% from the 50-Day Moving Average
After a stumble in the market that brought CDW to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -23.00% of loss for the given period.
Volatility was left at 2.18%, however, over the last 30 days, the volatility rate increased by 2.47%, as shares sank -10.15% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -10.66% lower at present.
During the last 5 trading sessions, CDW rose by +3.96%, which changed the moving average for the period of 200-days by -9.79% in comparison to the 20-day moving average, which settled at $211.76. In addition, CDW Corp saw -10.79% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CDW starting from LEAHY CHRISTINE A, who purchase 1,200 shares at the price of $216.15 back on Aug 01 ’24. After this action, LEAHY CHRISTINE A now owns 102,200 shares of CDW Corp, valued at $259,380 using the latest closing price.
MIRALLES ALBERT JOSEPH JR, the of CDW Corp, purchase 1,050 shares at $216.62 during a trade that took place back on Aug 01 ’24, which means that MIRALLES ALBERT JOSEPH JR is holding 16,876 shares at $227,449 based on the most recent closing price.
Stock Fundamentals for CDW
Current profitability levels for the company are sitting at:
- 0.08 for the present operating margin
- 0.22 for the gross margin
The net margin for CDW Corp stands at 0.05. The total capital return value is set at 0.19. Equity return is now at value 53.36, with 8.14 for asset returns.
Based on CDW Corp (CDW), the company’s capital structure generated 0.72 points at debt to capital in total, while cash flow to debt ratio is standing at 0.24. The debt to equity ratio resting at 2.57. The interest coverage ratio of the stock is 7.95.
Currently, EBITDA for the company is 1.95 billion with net debt to EBITDA at 2.7. When we switch over and look at the enterprise to sales, we see a ratio of 1.54. The receivables turnover for the company is 3.85for trailing twelve months and the total asset turnover is 1.45. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.40.
Conclusion
To sum up, CDW Corp (CDW) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
