Harris Associates L P Adds $121M in CDW Corporation ($CDW)
Harris Associates raised its holdings in CDW Corporation by 18.9%, now owning over 5.3 million shares.
Key Points
- Harris Associates added 857,250 shares of CDW, raising its stake by 18.9% to 5,383,062 shares, valued at $706.7 million.
- Shares of CDW Corporation (NasdaqGS:CDW) traded near $131.28, with a market cap of $16.2 billion and a P/E ratio of 15.43.
- Analysts maintain a 'buy' consensus with a target mean price of $147.3, reflecting positive sentiment around CDW.
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Harris Associates L P has significantly increased its investment in CDW Corporation (NasdaqGS:CDW). According to its latest 13F filing with the SEC on May 15, 2026, the firm boosted its holdings by 857,250 shares, bringing its total to 5,383,062 shares. This move represents an 18.9% increase in its position, now valued at approximately $706.7 million.
What Changed in Harris Associates's CDW Corporation Position
Harris Associates's recent filing shows a substantial increase in its stake in CDW Corporation. The firm added 857,250 shares, growing its total ownership by 18.9% from 4,525,812 shares to 5,383,062 shares. The value of these holdings stands at about $706.7 million, indicating a strong vote of confidence in the company's prospects.
Other Institutional Activity in CDW Corporation
In addition to Harris Associates, several other prominent funds adjusted their positions in CDW Corporation. BlackRock, Inc. increased its holdings by 1,068,612 shares, ending with 14,720,299 shares valued at approximately $1.78 billion. Vanguard Capital Management LLC and Vanguard Portfolio Management LLC both established positions with 8,420,409 and 8,183,342 shares, valued at about $1.02 billion and $990.3 million, respectively. Meanwhile, State Street Corp slightly trimmed its stake by 54,804 shares, resulting in 5,731,195 shares worth around $693.6 million.
CDW Corporation Stock Down 7.2%
Shares of CDW Corporation traded near $131.28, with a market cap of approximately $16.2 billion. The company has a P/E ratio of 15.43 and a forward P/E of 10.89, indicating potential growth. With a beta of 0.987, CDW's stock is less volatile than the market. The stock's 52-week range is between $97.12 and $183.91, and it maintains a 50-day moving average of $124.83 and a 200-day moving average of $136.64.
$CDW stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
CDW Corporation reported annual revenue of $22.9 billion, reflecting a growth rate of 9.2%. The company achieved a net margin of 4.7% and a return on equity of 44.2%. Its earnings per share (EPS) stood at $8.21. The next earnings report is expected on August 5, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 target cuts vs 0 raises.
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EPS & revenue
EPS missed estimates by 1.2%. Revenue beat estimates by 2.7%.
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Profit surprise
EBITDA missed by 32 percent. Operating income missed by 43 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
5 target cuts.
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Earnings quality
Gross margin down 0.6 points. Positive free cash flow.
Earnings Call Summary
CDW had a strong first quarter with net sales up 9 percent and gross profit up 6 percent, beating revenue expectations by about $147 million but missing earnings per share by 15 cents. The quarter was driven by customer urgency to buy hardware infrastructure, especially servers and networking equipment for AI applications, amid memory pricing uncertainty. Commercial customers led growth at 10 percent, and the company is rolling out AI tools to its sales teams to improve efficiency. Management expects the elevated backlog to support second quarter growth and believes margin pressure from heavy hardware mix will ease in the second half as customers balance spending across services and software.
Guidance CDW expects gross profit to grow low to mid-single digits for all of 2026, now raised from mid-single-digit guidance. Full year non-GAAP earnings per share expected to grow at the high end of mid-single digits. For the second quarter, they expect gross profit to grow high single digits from the first quarter and mid-single digits year over year.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Dividend
CDW Corporation offers an annual dividend rate of $2.52, yielding 1.94%. The company maintains a payout ratio of 30.57%, indicating a balanced approach to rewarding shareholders while retaining earnings for growth.
Insider Buying and Selling at CDW Corporation
On June 10, 2026, several insiders at CDW Corporation made stock purchases. Lynda Clarizio bought 8 shares, Virginia Addicott acquired 90 shares, and Peter Locy, the Senior Vice President, Controller, and Chief Accounting Officer, purchased 19 shares. Other insiders, including Marc Ellis Jones, Anthony Foxx, and Kelly Grier, also bought small amounts, all at an average price of $129.30.
Analysts Set New Price Targets
In recent analyst activity, Citigroup maintained a 'hold' rating on CDW with a $123 target on May 8, 2026. UBS kept its 'buy' rating with a $147 target on May 7, 2026, while JP Morgan and Barclays maintained 'hold' ratings with targets of $130 and $123, respectively. The consensus among analysts is a 'buy' rating, with a target mean price of $147.3 based on 10 analyst opinions.
About CDW Corporation
CDW Corporation is a leading provider of information technology solutions, serving businesses, government agencies, and educational institutions in the United States, the United Kingdom, and Canada. Headquartered in Vernon Hills, Illinois, and led by CEO Christine A. Leahy, the company offers a range of products and services, including hardware, software, and integrated IT solutions. CDW operates through three segments: Commercial, Government, and Education, employing about 14,800 people.
Bottom Line
Harris Associates's decision to increase its stake in CDW Corporation signals confidence in the company's future. Investors often look to such moves for insights, though it's important to remember that 13F filings are historical snapshots and may not reflect current positions. With a strong market presence and positive analyst sentiment, CDW remains a company to watch in the tech sector.
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