PC Connection (NASDAQ:CNXN) Posts Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Key Points

• PC Connection beat quarterly estimates: EPS was $1.24 versus the $1.04 consensus, while revenue reached $874.31 million compared with expectations of $773.74 million.
• Shares fell 2.4% to $86.46 despite the earnings beat, with the stock trading between a 12-month low of $54.97 and high of $96.90.
• Insiders sold $5.31 million of company stock over the past 90 days, while analyst sentiment remained a “Moderate Buy” overall after mixed rating changes.

PC Connection (NASDAQ:CNXN - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $1.04 by $0.20, FiscalAI reports. The company had revenue of $874.31 million for the quarter, compared to analysts' expectations of $773.74 million. PC Connection had a return on equity of 10.90% and a net margin of 3.21%.

PC Connection Trading Down 2.4%

CNXN stock traded down $2.12 during mid-day trading on Wednesday, hitting $86.46. 245,714 shares of the company were exchanged, compared to its average volume of 118,556. The company has a market capitalization of $2.18 billion, a PE ratio of 22.87, a price-to-earnings-growth ratio of 2.12 and a beta of 0.81. The firm has a fifty day simple moving average of $86.29 and a 200 day simple moving average of $71.91. PC Connection has a twelve month low of $54.97 and a twelve month high of $96.90.

Insider Transactions at PC Connection

In related news, Chairman Patricia Gallup sold 7,192 shares of PC Connection stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $87.20, for a total transaction of $627,142.40. Following the sale, the chairman directly owned 6,899,191 shares in the company, valued at $601,609,455.20. The trade was a 0.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David Beffa-Negrini sold 5,000 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $81.05, for a total value of $405,250.00. Following the completion of the sale, the director 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. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 62,136 shares of company stock valued at $5,312,310. Insiders own 56.60% of the company's stock.

Analysts Set New Price Targets

CNXN has been the subject of several analyst reports. Zacks Research cut PC Connection from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Weiss Ratings upgraded PC Connection from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy".

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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