PC Connection (NASDAQ:CNXN) Sets New 52-Week Low - Time to Sell?

Key Points

• PC Connection's stock reached a new 52-week low at $56.72, down significantly from a previous close of $64.03, with a trading volume of 208,302 shares.
• Wall Street analysts downgraded PC Connection from a "strong-buy" to a "buy" rating, reflecting a shift in market sentiment towards the company's performance.
• The company announced a quarterly dividend of $0.15 per share, with an ex-dividend date set for August 12th, indicating a 1.0% yield for shareholders.

Shares of PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $56.72 and last traded at $61.59, with a volume of 208302 shares. The stock had previously closed at $64.03.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen lowered shares of PC Connection from a "buy" rating to a "hold" rating in a research report on Saturday.

PC Connection Price Performance

The firm has a market cap of $1.49 billion, a price-to-earnings ratio of 17.95, a P/E/G ratio of 1.74 and a beta of 0.72. The firm's 50 day moving average price is $65.21 and its two-hundred day moving average price is $65.07.

PC Connection (NASDAQ:CNXN - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.97 earnings per share for the quarter, topping analysts' consensus estimates of $0.91 by $0.06. The business had revenue of $759.69 million during the quarter, compared to analysts' expectations of $774.66 million. PC Connection had a net margin of 2.97% and a return on equity of 9.74%. On average, analysts anticipate that PC Connection, Inc. will post 3.33 earnings per share for the current year.

PC Connection Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Tuesday, August 12th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, August 12th. PC Connection's dividend payout ratio is currently 18.29%.

Insider Transactions at PC Connection

In other news, Director Jack L. Ferguson sold 1,000 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The shares were sold at an average price of $66.32, for a total value of $66,320.00. Following the completion of the sale, the director directly owned 66,055 shares of the company's stock, valued at approximately $4,380,767.60. This represents a 1.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Timothy J. Mcgrath sold 26,565 shares of the company's stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $66.80, for a total transaction of $1,774,542.00. Following the completion of the sale, the chief executive officer owned 265,827 shares of the company's stock, valued at approximately $17,757,243.60. This trade represents a 9.09% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 33,005 shares of company stock valued at $2,205,614 over the last three months. 55.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PC Connection

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. AlphaQuest LLC grew its position in shares of PC Connection by 131.5% during the 2nd quarter. AlphaQuest LLC now owns 10,805 shares of the company's stock worth $711,000 after buying an additional 6,138 shares during the period. Denali Advisors LLC lifted its position in shares of PC Connection by 25.7% in the second quarter. Denali Advisors LLC now owns 66,631 shares of the company's stock worth $4,383,000 after purchasing an additional 13,608 shares in the last quarter. Moran Wealth Management LLC bought a new stake in PC Connection during the second quarter worth $2,154,000. CWM LLC raised its position in PC Connection by 158.2% during the second quarter. CWM LLC now owns 4,226 shares of the company's stock worth $278,000 after acquiring an additional 2,589 shares in the last quarter. Finally, KLP Kapitalforvaltning AS raised its position in PC Connection by 13.3% during the second quarter. KLP Kapitalforvaltning AS now owns 14,500 shares of the company's stock worth $954,000 after acquiring an additional 1,700 shares in the last quarter. 42.85% of the stock is owned by institutional investors.

About PC Connection

PC Connection, Inc, together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories.