PC Connection (NASDAQ:CNXN) Stock Price Down 8.5% - What's Next?

Key Points

• PC Connection's stock price fell by 8.5% to $58.58, trading at a significantly lower volume of approximately 8,539 shares compared to its average volume of 104,507 shares.
• Analysts downgraded PC Connection from a "strong-buy" to a "buy" rating amid the recent decline, indicating a shift in market confidence.
• The company's latest earnings report showed earnings per share (EPS) of $0.97, exceeding expectations, though revenue fell short of consensus estimates at $759.69 million.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) shares dropped 8.5% during trading on Thursday . The stock traded as low as $60.12 and last traded at $58.58. Approximately 8,539 shares changed hands during trading, a decline of 92% from the average daily volume of 104,507 shares. The stock had previously closed at $64.03.

Wall Street Analyst Weigh In

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

PC Connection Stock Up 0.5%

The company's fifty day moving average is $65.32 and its 200 day moving average is $65.15. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of 18.65, a PEG ratio of 1.74 and a beta of 0.72.

PC Connection (NASDAQ:CNXN - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.91 by $0.06. PC Connection had a net margin of 2.97% and a return on equity of 9.74%. The firm had revenue of $759.69 million for the quarter, compared to analyst estimates of $774.66 million. On average, equities research analysts forecast that PC Connection, Inc. will post 3.33 EPS for the current fiscal year.

PC Connection Dividend Announcement

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

Insider Buying and Selling at PC Connection

In other news, CEO Timothy J. Mcgrath sold 5,440 shares of the stock in a transaction dated Wednesday, May 28th. The shares were sold at an average price of $67.05, for a total value of $364,752.00. Following the transaction, the chief executive officer directly owned 260,387 shares of the company's stock, valued at $17,458,948.35. This represents a 2.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jack L. Ferguson sold 1,000 shares of the stock in a transaction dated Wednesday, May 28th. The shares were sold at an average price of $66.32, for a total transaction of $66,320.00. Following the completion of the transaction, the director directly owned 66,055 shares in the company, valued at $4,380,767.60. The trade was a 1.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 33,005 shares of company stock worth $2,205,614 over the last ninety days. Insiders own 55.20% of the company's stock.

Hedge Funds Weigh In On PC Connection

Large investors have recently modified their holdings of the stock. Nuveen Asset Management LLC raised its position in shares of PC Connection by 12.7% in the fourth quarter. Nuveen Asset Management LLC now owns 113,261 shares of the company's stock valued at $7,846,000 after purchasing an additional 12,795 shares during the period. SG Americas Securities LLC bought a new position in shares of PC Connection in the first quarter valued at about $339,000. GAMMA Investing LLC raised its position in shares of PC Connection by 333.4% in the first quarter. GAMMA Investing LLC now owns 2,167 shares of the company's stock valued at $135,000 after purchasing an additional 1,667 shares during the period. Vanguard Group Inc. raised its position in shares of PC Connection by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 1,118,289 shares of the company's stock valued at $77,464,000 after purchasing an additional 8,723 shares during the period. Finally, Rhumbline Advisers raised its position in shares of PC Connection by 17.3% in the first quarter. Rhumbline Advisers now owns 100,200 shares of the company's stock valued at $6,254,000 after purchasing an additional 14,768 shares during the period. 42.85% of the stock is owned by institutional investors.

PC Connection Company Profile

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.