PC Connection (NASDAQ:CNXN) Reaches New 12-Month High - Here's What Happened

Key Points

• PC Connection shares reached a new 52-week high, trading as high as $84.19 and last at $83.00, giving the company a market capitalization of approximately $2.04 billion.
• Recent analyst sentiment improved, with Weiss Ratings and Wall Street Zen upgrading the stock to “Buy”; MarketBeat lists a consensus rating of “Moderate Buy.”
• The company exceeded quarterly expectations, reporting $0.77 in earnings per share versus $0.62 forecast and revenue of $721.87 million versus $696.09 million. PC Connection also paid a quarterly dividend of $0.20 per share, equivalent to a 1.0% annual yield.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $84.19 and last traded at $83.00, with a volume of 3241 shares. The stock had previously closed at $81.23.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Weiss Ratings raised shares of PC Connection from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, June 3rd. Wall Street Zen raised shares of PC Connection from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy".

PC Connection Stock Down 0.5%

The firm has a market cap of $2.04 billion, a price-to-earnings ratio of 23.45, a price-to-earnings-growth ratio of 2.07 and a beta of 0.88. The business has a 50 day moving average of $72.44 and a 200 day moving average of $65.12.

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

PC Connection Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Tuesday, May 12th were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Tuesday, May 12th. PC Connection's payout ratio is currently 23.26%.

Insider Activity

In related news, Chairman Patricia Gallup sold 7,384 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $71.91, for a total transaction of $530,983.44. Following the sale, the chairman owned 7,027,747 shares in the company, valued at approximately $505,365,286.77. This trade represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold a total of 28,592 shares of company stock worth $2,048,512 over the last quarter. Corporate insiders own 56.60% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Qube Research & Technologies Ltd lifted its position 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 buying an additional 68,906 shares during the period. UBS Group AG grew its holdings in PC Connection by 189.9% in the 4th quarter. UBS Group AG now owns 89,814 shares of the company's stock valued at $5,188,000 after buying an additional 58,831 shares during the period. Millennium Management LLC grew its holdings in PC Connection by 98.8% in the 1st quarter. Millennium Management LLC now owns 115,237 shares of the company's stock valued at $7,193,000 after buying an additional 57,257 shares during the period. Invesco Ltd. increased 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 valued at $12,662,000 after acquiring an additional 39,716 shares during the last quarter. Finally, Engineers Gate Manager LP acquired a new position in shares of PC Connection during the 2nd quarter valued at about $2,585,000. Hedge funds and other institutional investors own 42.85% of the company's stock.

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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