PC Connection, Inc. (NASDAQ:CNXN) to Issue Quarterly Dividend of $0.20

Key Points

• PC Connection declared a quarterly dividend of $0.20 per share, payable August 28 to shareholders of record on August 11, representing an annualized dividend of $0.80 and a 1.0% yield.
• The dividend appears well covered, with a current payout ratio of 20.7% and an expected future payout ratio of 18.9% based on projected earnings.
• PC Connection reported quarterly EPS of $1.31, beating analyst estimates of $1.00, while revenue of $854 million also exceeded the $764.79 million consensus forecast.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Investors of record on Tuesday, August 11th will be given a dividend of 0.20 per share on Friday, August 28th. This represents a c) dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Tuesday, August 11th.

PC Connection has a payout ratio of 20.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect PC Connection to earn $4.24 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 18.9%.

PC Connection Trading Down 0.2%

NASDAQ CNXN opened at $82.97 on Thursday. The business has a fifty day simple moving average of $73.51 and a 200 day simple moving average of $65.64. PC Connection has a 12 month low of $54.97 and a 12 month high of $84.81. The firm has a market capitalization of $2.09 billion, a P/E ratio of 24.12, a PEG ratio of 2.12 and a beta of 0.88.

PC Connection (NASDAQ:CNXN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $1.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.00 by $0.31. The firm had revenue of $854.00 million for the quarter, compared to the consensus estimate of $764.79 million. PC Connection had a net margin of 3.02% and a return on equity of 10.17%. As a group, sell-side analysts predict that PC Connection will post 3.93 EPS for the current fiscal year.

Insider Activity at PC Connection

In related news, Chairman Patricia Gallup sold 7,142 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $72.86, for a total value of $520,366.12. Following the completion of the transaction, the chairman directly owned 7,006,321 shares of the company's stock, valued at approximately $510,480,548.06. This trade represents a 0.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last 90 days, insiders have sold 28,592 shares of company stock worth $2,048,512. Corporate insiders own 56.60% of the company's stock.

Institutional Investors Weigh In On PC Connection

Several institutional investors have recently made changes to their positions in CNXN. Dimensional Fund Advisors LP grew its position 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 in the last quarter. Vanguard Group Inc. lifted its holdings in PC Connection by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 1,080,151 shares of the company's stock worth $62,390,000 after purchasing an additional 10,218 shares in the last quarter. Geode Capital Management LLC lifted its holdings in PC Connection by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 377,001 shares of the company's stock worth $21,777,000 after purchasing an additional 2,945 shares in the last quarter. Invesco Ltd. boosted its stake in PC Connection by 22.1% in the 4th quarter. Invesco Ltd. now owns 219,220 shares of the company's stock worth $12,662,000 after purchasing an additional 39,716 shares during the period. Finally, Qube Research & Technologies Ltd boosted its stake in PC Connection by 71.3% in the 3rd quarter. Qube Research & Technologies Ltd now owns 165,573 shares of the company's stock worth $10,264,000 after purchasing an additional 68,906 shares during the period. Hedge funds and other institutional investors own 42.85% of the company's stock.

PC Connection Company Profile

PC Connection, Inc NASDAQ: CNXN, now operating under the trade name Connection, is a value-added provider of information technology solutions founded in 1982 and headquartered in Merrimack, New Hampshire. The company offers a broad portfolio of hardware and software products sourced from leading technology vendors, alongside professional services designed to help organizations design, deploy and maintain IT environments.

Connection's product offerings encompass desktop and notebook computers, servers and storage systems, networking and cybersecurity solutions, as well as cloud and virtualization technologies.

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