The Milwaukee-based IT solutions company is offering 8 million shares of its common stock at a price of $44.05 per share.
The offering will close on November 30.
Barclays and Goldman Sachs are underwriting the offering, CDW said.
As of the market close on Tuesday, 4.16 million shares of CDW have traded, versus its 30-day average of 1.21 million shares.
Separately, TheStreet Ratings team rates CDW CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate CDW CORP (CDW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CDW's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 7.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 175.00% and other important driving factors, this stock has surged by 37.38% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although CDW had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The gross profit margin for CDW CORP is rather low; currently it is at 17.91%. Regardless of CDW's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.31% trails the industry average.
- The debt-to-equity ratio is very high at 3.04 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, CDW's quick ratio is somewhat strong at 1.17, demonstrating the ability to handle short-term liquidity needs.
- You can view the full analysis from the report here: CDW
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.