PC Connection, Inc. (NASDAQ:CNXN) Shareholders Set to Receive $0.20 Quarterly Dividend

Key Points

• PC Connection declared a quarterly dividend of $0.20 per share, payable November 27 to shareholders of record on November 10. The annualized dividend is $0.80, yielding approximately 0.9%.
• The dividend appears well covered, with a current payout ratio of 20.7% and an expected future payout ratio of 17.9%. The company also exceeded quarterly earnings expectations, reporting $1.24 in EPS versus the $1.04 consensus and revenue of $874.31 million.
• PC Connection shares opened at $86.50, while insiders have sold 62,136 shares worth approximately $5.31 million over the past 90 days; insiders collectively own 56.6% of the company.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) declared a quarterly dividend on Wednesday, October 28th. Shareholders of record on Tuesday, November 10th will be given a dividend of $0.20 per share on Friday, November 27th. This represents a $0.80 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Tuesday, November 10th.

PC Connection has a payout ratio of 20.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect PC Connection to earn $4.47 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 17.9%.

PC Connection Price Performance

PC Connection stock opened at $86.50 on Thursday. PC Connection has a 12 month low of $54.97 and a 12 month high of $96.90. The company has a fifty day moving average price of $86.44 and a two-hundred day moving average price of $72.05. The company has a market cap of $2.18 billion, a PE ratio of 22.88, a P/E/G ratio of 2.12 and a beta of 0.81.

PC Connection (NASDAQ:CNXN - Get Free Report) last issued its earnings results on Wednesday, October 28th. The company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $1.04 by $0.20. PC Connection had a net margin of 3.21% and a return on equity of 10.90%. The company had revenue of $874.31 million for the quarter, compared to analysts' expectations of $773.74 million. Equities research analysts anticipate that PC Connection will post 4.18 earnings per share for the current year.

Insiders Place Their Bets

In other news, Chairman Patricia Gallup sold 8,004 shares of the business's stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $86.57, for a total transaction of $692,906.28. Following the completion of the transaction, the chairman owned 6,906,383 shares of the company's stock, valued at approximately $597,885,576.31. The trade was a 0.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director David Beffa-Negrini sold 5,000 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $81.05, for a total transaction of $405,250.00. Following the transaction, the director directly owned 60,875 shares of the company's stock, valued at approximately $4,933,918.75. This trade represents a 7.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 62,136 shares of company stock valued at $5,312,310. 56.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On PC Connection

Several institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in PC Connection during the 2nd quarter valued at about $158,833,000. Dimensional Fund Advisors LP increased its stake in shares of PC Connection by 0.3% in the first quarter. Dimensional Fund Advisors LP now owns 1,526,494 shares of the company's stock valued at $89,237,000 after purchasing an additional 4,345 shares during the period. Bank of New York Mellon Corp increased its stake in shares of PC Connection by 1.2% in the first quarter. Bank of New York Mellon Corp now owns 138,286 shares of the company's stock valued at $8,084,000 after purchasing an additional 1,650 shares during the period. Denali Advisors LLC raised its holdings in shares of PC Connection by 19.1% during the second quarter. Denali Advisors LLC now owns 99,200 shares of the company's stock valued at $7,241,000 after buying an additional 15,900 shares during the last quarter. Finally, Man Group plc bought a new stake in shares of PC Connection during the second quarter valued at approximately $6,925,000. Institutional investors own 42.85% of the company's stock.

PC Connection Company Profile

PC Connection, Inc is an information technology solutions provider that supplies technology products, services and expertise to businesses, government agencies, educational institutions and other organizations. The company helps customers plan, acquire, deploy and manage IT environments across workplace, data center, networking, security and cloud infrastructure.

Its offerings include computers, servers, storage systems, networking equipment, software, peripherals and related technology accessories.

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