PC Connection (NASDAQ:CNXN) Stock Price Down 8.5% - Time to Sell?

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)'s stock price traded down 8.5% on Thursday . The stock traded as low as $60.12 and last traded at $58.58. 8,539 shares changed hands during trading, a decline of 92% from the average session volume of 104,507 shares. The stock had previously closed at $64.03.

Analyst Ratings Changes

Separately, Wall Street Zen cut PC Connection from a "buy" rating to a "hold" rating in a research note on Saturday.

PC Connection Trading Down 1.0%

The stock has a market capitalization of $1.55 billion, a PE ratio of 18.59, a price-to-earnings-growth ratio of 1.78 and a beta of 0.72. The firm has a 50-day moving average price of $65.32 and a 200-day moving average price of $65.22.

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

PC Connection Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Tuesday, August 12th will be issued a dividend of $0.15 per share. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $0.60 annualized dividend and a yield of 1.0%. PC Connection's dividend payout ratio is 18.18%.

Insider Activity

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Nuveen Asset Management LLC grew its holdings in PC Connection by 12.7% during the 4th quarter. Nuveen Asset Management LLC now owns 113,261 shares of the company's stock valued at $7,846,000 after buying an additional 12,795 shares in the last quarter. SG Americas Securities LLC purchased a new position in PC Connection during the 1st quarter valued at about $339,000. GAMMA Investing LLC grew its holdings in PC Connection by 333.4% during the 1st quarter. GAMMA Investing LLC now owns 2,167 shares of the company's stock valued at $135,000 after buying an additional 1,667 shares in the last quarter. Vanguard Group Inc. grew its holdings in PC Connection by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 1,118,289 shares of the company's stock valued at $77,464,000 after buying an additional 8,723 shares in the last quarter. Finally, Rhumbline Advisers grew its holdings in PC Connection by 17.3% during the 1st quarter. Rhumbline Advisers now owns 100,200 shares of the company's stock valued at $6,254,000 after buying an additional 14,768 shares in the last quarter. Hedge funds and other institutional investors own 42.85% of the company's stock.

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.