Zacks Research Downgrades PC Connection (NASDAQ:CNXN) to Hold

Key Points

• Zacks Research downgraded PC Connection from “strong buy” to “hold,” while Weiss Ratings also lowered its rating to “buy (b-).” MarketBeat’s consensus rating remains “Moderate Buy.”
• PC Connection shares opened at $89.49, near their 52-week high of $90.67, with a $2.26 billion market capitalization. The company recently exceeded quarterly expectations, reporting $1.31 in EPS versus a $1.00 estimate and revenue of $854 million versus a $764.79 million estimate.
• Insiders sold approximately $2.87 million of stock over the past three months, including a $610,070 sale by Chairman Patricia Gallup. Institutional ownership stands at 42.85%, while insiders retain a substantial 56.60% stake.

PC Connection (NASDAQ:CNXN - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday, Zacks reports.

Separately, Weiss Ratings cut PC Connection from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, September 16th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy".

PC Connection Stock Down 0.2%

Shares of PC Connection stock opened at $89.49 on Monday. The company has a market cap of $2.26 billion, a P/E ratio of 23.67, a PEG ratio of 2.15 and a beta of 0.85. The firm's 50 day moving average price is $83.11 and its 200-day moving average price is $72.66. PC Connection has a 52-week low of $54.97 and a 52-week high of $90.67.

PC Connection (NASDAQ:CNXN - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.31. The company had revenue of $854.00 million during the quarter, compared to the consensus estimate of $764.79 million. PC Connection had a net margin of 3.21% and a return on equity of 10.90%. As a group, equities research analysts forecast that PC Connection will post 4.18 EPS for the current fiscal year.

Insider Activity at PC Connection

In other PC Connection news, Chairman Patricia Gallup sold 7,142 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $85.42, for a total value of $610,069.64. Following the sale, the chairman directly owned 6,934,901 shares of the company's stock, valued at approximately $592,379,243.42. This represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold a total of 35,710 shares of company stock worth $2,872,655 over the last three months. Insiders own 56.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. PDT Partners LLC acquired a new position in shares of PC Connection in the 2nd quarter valued at $3,557,000. Hsbc Holdings PLC purchased a new position in shares of PC Connection in the 2nd quarter valued at about $1,138,000. Legal & General Group Plc purchased a new position in shares of PC Connection in the 2nd quarter valued at about $1,872,000. Allspring Global Investments Holdings LLC raised its holdings in PC Connection by 137.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 61,038 shares of the company's stock worth $3,661,000 after purchasing an additional 35,358 shares during the period. Finally, Man Group plc acquired a new position in PC Connection in the 2nd quarter worth about $6,925,000. 42.85% of the stock is currently owned by hedge funds and other institutional investors.

PC Connection Company Profile

PC Connection, Inc NASDAQ: CNXN is an information technology solutions provider serving businesses, government agencies, educational institutions and other organizations. The company supplies technology products and provides services designed to help customers plan, implement and manage their IT environments.

Its offerings include computers and mobile devices, servers, storage systems, networking equipment, software, peripherals and communications products. PC Connection also provides professional and lifecycle services, including consulting, systems integration, cloud and data-center solutions, cybersecurity, managed services, deployment, configuration and technical support.

Founded in 1982, the company operates primarily in the United States through brands and business units that include Connection, GovConnection and MoreDirect.

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