PC Connection (NASDAQ:CNXN) Announces Earnings Results

Key Points

• Q‑quarter beat: PC Connection reported EPS of $0.77 vs. a $0.63 consensus and revenue of $721.9M vs. a $698.8M estimate, delivering better‑than‑expected results.
• Dividend raised: The company increased its quarterly dividend to $0.20 (from $0.15), an $0.80 annualized payout with a 1.3% yield and a 24.46% payout ratio.
• Stock and ownership snapshot: Shares traded around $63.38 with a $1.6B market cap and a 19.4 P/E, and institutional/hedge fund ownership stands at about 42.9% with several funds modestly increasing positions.

PC Connection (NASDAQ:CNXN - Get Free Report) released its earnings results on Wednesday. The company reported $0.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.63 by $0.14, FiscalAI reports. PC Connection had a return on equity of 9.87% and a net margin of 2.91%.The business had revenue of $721.87 million during the quarter, compared to the consensus estimate of $698.84 million.

PC Connection Stock Performance

NASDAQ:CNXN traded down $0.24 during trading hours on Wednesday, reaching $63.38. The stock had a trading volume of 50,624 shares, compared to its average volume of 78,393. The stock has a 50 day simple moving average of $60.96 and a 200 day simple moving average of $60.09. PC Connection has a 12-month low of $54.97 and a 12-month high of $71.17. The stock has a market cap of $1.60 billion, a P/E ratio of 19.38, a price-to-earnings-growth ratio of 1.69 and a beta of 0.83.

PC Connection Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 6th. Shareholders of record on Tuesday, February 17th were given a $0.20 dividend. This is an increase from PC Connection's previous quarterly dividend of $0.15. This represents a $0.80 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Tuesday, February 17th. PC Connection's dividend payout ratio (DPR) is 24.46%.

Hedge Funds Weigh In On PC Connection

Several hedge funds have recently made changes to their positions in the stock. Martingale Asset Management L P grew its position in shares of PC Connection by 1.3% in the fourth quarter. Martingale Asset Management L P now owns 19,137 shares of the company's stock valued at $1,105,000 after purchasing an additional 252 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of PC Connection by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,900 shares of the company's stock valued at $431,000 after purchasing an additional 312 shares in the last quarter. Franklin Resources Inc. grew its position in shares of PC Connection by 8.2% in the third quarter. Franklin Resources Inc. now owns 4,616 shares of the company's stock valued at $286,000 after purchasing an additional 348 shares in the last quarter. WINTON GROUP Ltd grew its position in shares of PC Connection by 6.7% in the fourth quarter. WINTON GROUP Ltd now owns 6,257 shares of the company's stock valued at $361,000 after purchasing an additional 394 shares in the last quarter. Finally, Swiss National Bank grew its position in shares of PC Connection by 1.8% in the fourth quarter. Swiss National Bank now owns 22,500 shares of the company's stock valued at $1,300,000 after purchasing an additional 400 shares in the last quarter. 42.85% of the stock is currently owned by hedge funds and other institutional investors.

About PC Connection

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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