Stock Traders Buy Large Volume of Call Options on CDW (NASDAQ:CDW)

CDW Corporation (NASDAQ:CDW) was the recipient of unusually large options trading activity on Wednesday. Stock investors acquired 3,680 call options on the company. This represents an increase of 2,244% compared to the average daily volume of 157 call options.

CDW Stock Performance

Shares of CDW stock opened at $127.62 on Thursday. CDW has a fifty-two week low of $124.00 and a fifty-two week high of $222.92. The stock’s 50-day moving average is $139.44 and its two-hundred day moving average is $155.22. The company has a debt-to-equity ratio of 2.21, a current ratio of 1.39 and a quick ratio of 1.30. The firm has a market cap of $16.61 billion, a P/E ratio of 16.11, a PEG ratio of 1.62 and a beta of 1.08.

CDW (NASDAQ:CDW) last announced its quarterly earnings results on Tuesday, November 4th. The information technology services provider reported $2.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.62 by $0.09. CDW had a return on equity of 51.89% and a net margin of 4.76%.The business had revenue of $5.74 billion during the quarter, compared to analyst estimates of $5.75 billion. Analysts predict that CDW will post 9.41 earnings per share for the current fiscal year.

CDW Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Tuesday, November 25th were given a $0.63 dividend. This is a positive change from CDW’s previous quarterly dividend of $0.63. This represents a $2.52 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend was Tuesday, November 25th. CDW’s payout ratio is presently 31.82%.

Key CDW News

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Unusually large call buying — Traders bought ~3,680 CDW call options (a ~2,244% jump vs. average), signaling short‑term bullish interest or positioning ahead of events. Elevated call volume can lift stock volatility and indicates directional bets from options market participants. Options Activity
• Positive Sentiment: Analyst consensus remains constructive — Street consensus classifies CDW as a “Moderate Buy,” supporting demand from investors who follow analyst views and model‑driven buy lists. Analyst Consensus
• Neutral Sentiment: Upcoming earnings date set for Feb. 4 — Management will report Q4 and full‑year 2025 results and host a webcast; this provides a clear catalyst that could drive volatility and re‑rate consensus depending on guidance and margin commentary. Investors are likely positioning into this event. Earnings Release
• Neutral Sentiment: Partnership news in commercial solutions — A Geotab/CDWare tie‑up highlights CDW’s ecosystem reach into telematics/industry verticals; strategic partnerships support cross‑sell but are unlikely to move near‑term revenue meaningfully on their own. Partnership Announcement
• Negative Sentiment: Price‑target cut by Citigroup to $148 (neutral rating) — Citigroup trimmed its target from $160 to $148, reducing upside and signaling more cautious near‑term expectations; analyst revisions can weigh on sentiment and institutional flows. Citigroup Price Target
• Negative Sentiment: Sector and peer weakness / underperformance — Recent coverage notes U.S. IT hardware stocks sliding amid macro uncertainty and CDW underperformed peers on Tuesday, which can pressure multiple and create headwinds for near‑term shares. Sector Weakness Peer Underperformance

Insider Transactions at CDW

In other CDW news, insider Sona Chawla sold 7,400 shares of the company’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $146.17, for a total value of $1,081,658.00. Following the transaction, the insider owned 28,110 shares of the company’s stock, valued at approximately $4,108,838.70. This represents a 20.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.84% of the company’s stock.

Hedge Funds Weigh In On CDW

Several institutional investors have recently bought and sold shares of the stock. Root Financial Partners LLC bought a new position in shares of CDW in the 3rd quarter valued at approximately $26,000. Quent Capital LLC acquired a new position in CDW during the third quarter valued at approximately $57,000. eCIO Inc. bought a new position in shares of CDW in the fourth quarter valued at approximately $61,000. Covestor Ltd raised its position in shares of CDW by 87.9% in the third quarter. Covestor Ltd now owns 483 shares of the information technology services provider’s stock valued at $77,000 after purchasing an additional 226 shares during the period. Finally, Steph & Co. lifted its stake in shares of CDW by 917.6% in the second quarter. Steph & Co. now owns 692 shares of the information technology services provider’s stock worth $124,000 after buying an additional 624 shares during the last quarter. 93.15% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Citigroup cut their target price on shares of CDW from $160.00 to $148.00 and set a “neutral” rating on the stock in a research note on Tuesday. Raymond James Financial upgraded CDW from an “outperform” rating to a “strong-buy” rating and set a $185.00 price target on the stock in a report on Tuesday, November 25th. UBS Group reduced their price objective on CDW from $200.00 to $190.00 and set a “buy” rating for the company in a research note on Wednesday, November 5th. Barclays decreased their price objective on CDW from $176.00 to $148.00 and set an “equal weight” rating for the company in a research report on Wednesday, November 5th. Finally, Evercore ISI reaffirmed an “outperform” rating and set a $180.00 target price on shares of CDW in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $171.00.

About CDW

CDW (NASDAQ: CDW) is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.