PC Connection (NASDAQ:CNXN) Hits New 52-Week High - Here's Why

Key Points

• PC Connection (NASDAQ: CNXN) hit a new 52-week high, trading as high as $75.76 after closing at $74.90 the prior session.
• The company recently posted better-than-expected quarterly results, earning $0.77 per share versus estimates of $0.62 on revenue of $721.87 million, above consensus.
• Sentiment has improved as analysts upgraded the stock and the company continued paying a quarterly dividend of $0.20 per share, implying a 1.1% annual yield.

Shares of PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) hit a new 52-week high during trading on Thursday . The stock traded as high as $75.76 and last traded at $75.31, with a volume of 68814 shares. The stock had previously closed at $74.90.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on CNXN shares. Wall Street Zen upgraded shares of PC Connection from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Weiss Ratings upgraded shares of PC Connection from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy".

PC Connection Trading Up 0.6%

The stock has a market cap of $1.90 billion, a P/E ratio of 21.91, a PEG ratio of 1.89 and a beta of 0.88. The company has a 50 day simple moving average of $69.01 and a 200 day simple moving average of $63.41.

PC Connection (NASDAQ:CNXN - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.15. PC Connection had a return on equity of 10.17% and a net margin of 3.02%.The firm had revenue of $721.87 million during the quarter, compared to the consensus estimate of $696.09 million. As a group, sell-side analysts expect that PC Connection, Inc. will post 3.93 earnings per share for the current year.

PC Connection Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Tuesday, May 12th were issued a dividend of $0.20 per share. The ex-dividend date was Tuesday, May 12th. This represents a $0.80 annualized dividend and a yield of 1.1%. PC Connection's dividend payout ratio is presently 23.26%.

Insiders Place Their Bets

In other PC Connection news, Chairman Patricia Gallup sold 7,384 shares of PC Connection stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $71.91, for a total value of $530,983.44. Following the sale, the chairman directly owned 7,027,747 shares in the company, valued at approximately $505,365,286.77. The trade was a 0.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold a total of 28,592 shares of company stock valued at $2,048,512 over the last ninety days. 56.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PC Connection

Hedge funds have recently modified their holdings of the stock. Qube Research & Technologies Ltd raised its holdings in PC Connection by 71.3% during the third quarter. Qube Research & Technologies Ltd now owns 165,573 shares of the company's stock worth $10,264,000 after acquiring an additional 68,906 shares in the last quarter. UBS Group AG increased its position in shares of PC Connection by 189.9% during the 4th quarter. UBS Group AG now owns 89,814 shares of the company's stock worth $5,188,000 after purchasing an additional 58,831 shares during the last quarter. Millennium Management LLC increased its position in shares of PC Connection by 98.8% during the 1st quarter. Millennium Management LLC now owns 115,237 shares of the company's stock worth $7,193,000 after purchasing an additional 57,257 shares during the last quarter. Invesco Ltd. raised its stake in shares of PC Connection by 22.1% during 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 in the last quarter. Finally, Engineers Gate Manager LP bought a new stake in shares of PC Connection during the 2nd quarter worth approximately $2,585,000. 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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