1. CDW Corporation (NASDAQ:CDW)
Select Equity Group’s Stake Value: $1,244,692,000
Percentage of Select Equity Group’s 13F Portfolio: 4.18%
Number of Hedge Fund Holders: 37
Select Equity Group owns 6.8 million shares of CDW Corporation (NASDAQ:CDW) as of Q3 2021, worth $1.24 billion, representing 4.18% of the fund’s 13F securities. CDW Corporation (NASDAQ:CDW) is an Illinois-based provider of technology products and services, serving enterprises, governments, and the education sector.
CDW Corporation (NASDAQ:CDW) purchased Sirius Computer Solutions from Clayton, Dubilier & Rice in December, which is a company providing mission-critical technology-based solutions for corporate and institutional customers. The total purchase price was $2.5 billion.
On November 3, CDW Corporation (NASDAQ:CDW) declared a C$0.50 per share quarterly dividend, which is a 25% increase from the prior dividend of C$0.40. The dividend was paid on December 10 to shareholders of record on November 24.
CDW Corporation (NASDAQ:CDW) announced its Q3 results on November 3, reporting earnings per share of $2.13, exceeding estimates by $0.08. The $5.30 billion revenue was up 11.43% year-over-year, but missed estimates by $23.49 million.
Evercore ISI analyst Amit Daryanani on December 14 reinstated coverage of CDW Corporation (NASDAQ:CDW) with an Outperform rating and a $225 price target. Despite PC worries, he expects CDW Corporation (NASDAQ:CDW) to “out-execute” and sustain high single-digit revenue and double-digit EPS growth.
In the third quarter of 2021, 37 hedge funds were long CDW Corporation (NASDAQ:CDW), up from 27 funds in the prior quarter.
Here is what Wedgewood Partners has to say about CDW Corporation (NASDAQ:CDW) in its Q2 2021 investor letter:
“We have owned CDW stock for nearly two years now, and we have been quite pleased to see our thesis playing out as expected – even with the completely unexpected trauma of the pandemic fireworks during our holding period. These are the key components of our investment thesis, in simplistic form: First, the IT distribution and consulting industry is an attractive place to invest, with secular growth above that of the broad economy. Second, we expect the Company to continue to take share within the IT distribution and consulting industry, growing faster than the industry while continuing to improve margins and returns. The pandemic emerged shortly after our purchase, but even that did not alter the favorable dynamics underlying our thesis, as you can see below. (Click to read full text)
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