CDW – CDW Corporation

CDW Corporation: Monthly Investment Analysis – November 2025

Published on November 26, 2025

Company Overview

CDW Corporation, headquartered in Vernon Hills, Illinois, stands as a prominent provider of information technology (IT) solutions across the United States, the United Kingdom, and Canada. Operating within the Technology sector, CDW has developed a strong positioning in the Information Technology Services industry since its inception in 1984. The company’s diverse business model encompasses Corporate, Small Business, and Public segments, delivering an extensive range of hardware and software products, integrated IT solutions, including on-premise and cloud services, and professional advisory and managed services. With a remarkable total revenue of approximately $22.1 billion, CDW has affirmed its status as a key player in catering to various sectors, including business, government, education, and healthcare.

52-Week Price Performance Analysis

The 52-week stock price chart for CDW Corporation reveals a predominantly bearish trend, which presents significant implications for prospective investors. Currently, the stock is priced at $143.54, a stark contrast to its 52-week high of $222.92. This represents a 37.39% decline and highlights a shift in market sentiment toward the company.

Key Technical Insights

• Resistance Levels: The chart indicates a critical resistance level around $180, which has proven difficult to breach, confirmed by multiple tests without sustainable breakthroughs.
• Support Levels: Recently, the support level near $143 was breached, suggesting further downside risk if prices do not recover above this threshold.
• Moving Averages: The 50-day moving average stands at $152.96, with CDW trading significantly below this average. This indicates a bearish momentum, reinforcing concerns about short-term price pressures.
• Momentum Indicators: The stock began the year on an uptrend but has undergone a steady decline since the early months; a noticeable head and shoulders formation emerged between March and May, signaling a potential transition from bullish to bearish momentum. Recent trading patterns indicate a consolidation phase; however, failing to hold above key support levels emphasizes caution for investors.

Market Dynamics

Investors should be particularly vigilant regarding upcoming trading sessions, as a breach below critical support may ignite further sell-offs while any sustained recovery above $143 might inspire cautious optimism.

Financial Performance and Metrics

In its third-quarter report for 2025, CDW achieved a 4.0% increase in net sales compared to the same quarter in 2024, attributed to heightened demand for network communication products, notebooks, desktops, software, and services. However, operating income witnessed an 8.0% decline, largely from increased selling and administrative expenses, showcasing the challenges under which the company operates.

Key Financial Metrics

• Total Revenue: Approximately $22.1 billion
• EBITDA: Around $1.96 billion, indicating robust operational efficiency.
• Dividend: A quarterly cash dividend of $0.630 per share was recently announced, reflecting the company’s aim to distribute 25% of trailing twelve-month non-GAAP net income as part of its capital allocation strategy.

Valuation Considerations

• Shares Outstanding: A total of 130,193,660 shares are currently issued.
• Short Interest: Approximately 4,227,920 shares are shorted, equating to 0.0369% of the float, suggesting a generally optimistic outlook among investors.
• Stock Price Movement: The current price of $143.54 and potential high target of $225.00 imply potential upside. Analysts have established a mean target price of $182.00, indicating positive future expectations despite recent performance dips.

Recent News and Developments

CDW’s recent announcements include a 1% increase in its quarterly cash dividend to $0.630 per share, payable on December 10, 2025, which may symbolize company stability amidst operational challenges. Furthermore, on November 20, 2025, the stock drifted to a new 52-week low of $137.30, reflecting a 22.53% drop over the past year, influenced by broader sector dynamics, including volatility in technology markets.

In a recent assessment, BofA Securities revised its price target from $200 to $170, maintaining a Neutral rating in light of revenue misses and cautious guidance for the fourth quarter. As analysts continue evaluating the impact of ongoing economic conditions, feedback reflects a mixed sentiment, urging investors to tread carefully.

Market Sentiment and Analyst Recommendations

Current market sentiment surrounding CDW Corporation is nuanced. With the absence of a clear analyst consensus owing to varying evaluations, investors face a landscape characterized by both opportunities and inherent risks. The mean target sits at $182.00, while the median price target is slightly high at $183.00.

• Opportunities: If macroeconomic conditions stabilize, CDW’s diversified offerings and recent strategic moves could position the stock for recovery.
• Risks: Persistent trading below key support levels, along with rising operational expenses and mixed analyst sentiment, indicate a watchful environment for potential investors.

In conclusion, CDW Corporation remains a company with considerable potential and a strong service portfolio, yet investors must weigh the current risks against projected growth in an ever-evolving market landscape. As the stock approaches pivotal price points, strategic monitoring of financial health, market sentiment, and operational updates will remain crucial for discerning long-term investment strategies.

Metric	Value
Market Cap	$18.8b
Total Debt	$6.1b
Total Cash	$452.9m
Shares Outstanding	130.2m
Float Shares	129.7m