Bank of America Corp DE Acquires New Stake in PC Connection, Inc. $CNXN

Key Points

• Bank of America acquired 42,198 shares of PC Connection during the second quarter, valued at approximately $3.08 million and representing about 0.17% of the company. Institutional investors collectively own 42.85% of CNXN.
• Analysts remain bullish, with the stock holding an average “Strong Buy” rating. PC Connection also exceeded quarterly expectations, reporting $1.31 in earnings per share versus the $1.00 consensus estimate and revenue of $854 million.
• Chairman Patricia Gallup sold 7,142 shares for roughly $610,000, while insiders sold 35,710 shares during the quarter. PC Connection maintains a quarterly dividend of $0.20, equivalent to an annualized $0.80 payout and a 0.9% yield.

Bank of America Corp DE bought a new stake in shares of PC Connection, Inc. (NASDAQ:CNXN - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 42,198 shares of the company's stock, valued at approximately $3,080,000. Bank of America Corp DE owned about 0.17% of PC Connection at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in CNXN. Parallel Advisors LLC grew its stake in PC Connection by 200.4% during the 1st quarter. Parallel Advisors LLC now owns 709 shares of the company's stock valued at $41,000 after acquiring an additional 473 shares in the last quarter. Meeder Asset Management Inc. acquired a new stake in PC Connection in the 1st quarter valued at about $44,000. Quantbot Technologies LP purchased a new position in PC Connection in the 2nd quarter worth approximately $105,000. Fifth Third Bancorp lifted its stake in PC Connection by 1,551.2% in the 1st quarter. Fifth Third Bancorp now owns 2,675 shares of the company's stock worth $156,000 after purchasing an additional 2,513 shares in the last quarter. Finally, State of Wyoming acquired a new position in shares of PC Connection during the 2nd quarter worth approximately $237,000. Hedge funds and other institutional investors own 42.85% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on CNXN. Zacks Research upgraded PC Connection from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 30th. Weiss Ratings downgraded 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 Strong Buy rating and one has given a Buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Strong Buy".

Insider Activity

In other news, Chairman Patricia Gallup sold 7,142 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $85.42, for a total transaction of $610,069.64. Following the sale, the chairman 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last quarter, insiders sold 35,710 shares of company stock valued at $2,872,655. 56.60% of the stock is currently owned by insiders.

PC Connection Stock Down 0.2%

CNXN stock opened at $89.49 on Wednesday. The stock has a market cap of $2.26 billion, a price-to-earnings ratio of 23.67, a price-to-earnings-growth ratio of 2.15 and a beta of 0.85. PC Connection, Inc. has a 52-week low of $54.97 and a 52-week high of $90.67. The business has a fifty day moving average of $83.11 and a two-hundred day moving average of $72.66.

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, topping the consensus estimate of $1.00 by $0.31. PC Connection had a net margin of 3.21% and a return on equity of 10.90%. The company had revenue of $854.00 million during the quarter, compared to analyst estimates of $764.79 million. As a group, sell-side analysts anticipate that PC Connection, Inc. will post 4.18 EPS for the current year.

PC Connection Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, August 11th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Tuesday, August 11th. PC Connection's payout ratio is currently 21.16%.

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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