PC Connection (NASDAQ:CNXN) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• Shares crossed above its 200‑day moving average, trading as high as $65.15 and last at $63.12, suggesting improved technical momentum.
• The company beat EPS ($0.91 vs. $0.86 expected) but missed revenue ($702.94M vs. $735.49M); Connection has a market cap of $1.59B and a P/E of 19.3.
• Connection raised its quarterly dividend to $0.20 (annualized $0.80, yield ~1.3%), while sell‑side coverage remains an average "Hold" and institutions own about 42.9% of the stock.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $59.89 and traded as high as $65.15. PC Connection shares last traded at $63.12, with a volume of 39,647 shares.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CNXN. Zacks Research upgraded PC Connection from a "strong sell" rating to a "hold" rating in a research report on Monday, December 29th. Weiss Ratings restated a "hold (c)" rating on shares of PC Connection in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has an average rating of "Hold".

PC Connection Price Performance

The firm has a market capitalization of $1.59 billion, a P/E ratio of 19.30, a P/E/G ratio of 1.69 and a beta of 0.83. The stock has a fifty day simple moving average of $61.12 and a two-hundred day simple moving average of $59.89.

PC Connection (NASDAQ:CNXN - Get Free Report) last issued its earnings results on Wednesday, February 4th. The company reported $0.91 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.05. The business had revenue of $702.94 million during the quarter, compared to the consensus estimate of $735.49 million. PC Connection had a return on equity of 9.87% and a net margin of 2.91%. As a group, sell-side analysts expect that PC Connection, Inc. will post 3.33 EPS for the current fiscal year.

PC Connection Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 6th. Shareholders of record on Tuesday, February 17th were issued a $0.20 dividend. The ex-dividend date was Tuesday, February 17th. 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%. PC Connection's dividend payout ratio is presently 24.46%.

Institutional Investors Weigh In On PC Connection

A number of hedge funds have recently added to or reduced their stakes in CNXN. Amundi bought a new stake in PC Connection in the first quarter worth approximately $519,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in 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 acquiring an additional 312 shares during the period. Millennium Management LLC grew its stake in PC Connection by 98.8% in the first quarter. Millennium Management LLC now owns 115,237 shares of the company's stock valued at $7,193,000 after acquiring an additional 57,257 shares during the period. Invesco Ltd. grew its stake in PC Connection by 2.4% in the second quarter. Invesco Ltd. now owns 179,487 shares of the company's stock valued at $11,807,000 after acquiring an additional 4,146 shares during the period. Finally, EverSource Wealth Advisors LLC grew its stake in PC Connection by 625.0% in the second quarter. EverSource Wealth Advisors LLC now owns 580 shares of the company's stock valued at $38,000 after acquiring an additional 500 shares during the period. 42.85% of the stock is currently owned by institutional investors.

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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