In this article, we discuss 5 of Thomas Bancroft’s Makaira Partners’ stock picks. If you want to see more of Thomas Bancroft’s stock picks, go directly to Thomas Bancroft’s Makaira Partners’ Stock Picks: Liberty Broadband (LBRDA), Bath & Body Works (BBWI), and More.
5. CDW Corporation (NASDAQ:CDW)
Bancroft’s Stake Value: $50,471,000
Percentage of Thomas Bancroft’s 13F Portfolio: 10.01%
Number of Hedge Fund Holders: 27
CDW Corporation (NASDAQ: CDW) provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products, as well as integrated IT solutions, including on-premise, hybrid, and cloud capabilities across data-center and networking, digital workspace, security, and virtualization. CDW Corporation (NASDAQ: CDW) was founded in 1984 and is based in Lincolnshire, Illinois.
This August, Credit Suisse analyst Matthew Cabral raised the firm’s price target on CDW Corporation (NASDAQ: CDW) from $200 to $210 and kept an Outperform rating on the shares. The analyst cites CDW’s second-quarter “solid beat,” with revenues and EPS of $5.15 billion and $2.02 respectively.
According to the latest filings, Makaira Partners owned roughly 289,000 shares in the firm at the end of June 2021 worth $50.4 million, representing 10.01% of the portfolio.
As of the fiscal second quarter of 2021, CDW Corporation (NASDAQ: CDW) reported an EPS of $2.02, beating estimates by $0.22. Total revenue grew 17.88% year over year to $5.15 billion beating estimates by $173.28 million. The share price of CDW Corporation (NASDAQ: CDW) has gained 20.95% over the past 6 months and 50.31% year to date.
By the end of the second quarter of 2021, 27 hedge funds out of the 873 tracked by Insider Monkey held stakes in CDW Corporation (NASDAQ: CDW) worth about $1.76 billion. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $1.90 billion.
Wedgewood Partners, an investment management firm, published its second-quarter 2021 investor letter. The fund mentioned CDW Corporation (NASDAQ: CDW) and discussed its stance on the firm. Here’s what they had to say:
“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…”
