PC Connection (NASDAQ:CNXN) Hits New 1-Year High - Here's What Happened

Key Points

• PC Connection shares reached a new 52-week high, trading as high as $93.94 and last changing hands near $94.17, compared with a prior close of $92.81.
• The company reported quarterly EPS of $1.31, exceeding the $1.00 analyst consensus, while revenue of $854 million surpassed expectations of $764.79 million.
• Analyst sentiment remains moderately positive, with one Buy and one Hold rating; PC Connection also maintains a quarterly dividend of $0.20 per share, equal to a 0.9% annual yield.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) reached a new 52-week high during trading on Monday. The company traded as high as $93.94 and last traded at $94.1650, with a volume of 11,891 shares changing hands. The stock had previously closed at $92.81.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Weiss Ratings upgraded shares of PC Connection from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday. Zacks Research cut shares of PC Connection from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy".

PC Connection Stock Performance

The company has a market capitalization of $2.38 billion, a PE ratio of 24.90, a P/E/G ratio of 2.22 and a beta of 0.81. The company's 50-day simple moving average is $84.70 and its 200-day simple moving average is $74.55.

PC Connection (NASDAQ:CNXN - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $1.31 EPS for the quarter, beating analysts' consensus estimates of $1.00 by $0.31. PC Connection had a net margin of 3.21% and a return on equity of 10.90%. The business had revenue of $854.00 million during the quarter, compared to analysts' expectations of $764.79 million. Analysts expect that PC Connection, Inc. will post 4.18 EPS for the current year.

PC Connection Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Tuesday, August 11th were given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 0.9%. The ex-dividend date was Tuesday, August 11th. PC Connection's payout ratio is 21.16%.

Insider Activity

In other PC Connection news, Director David Beffa-Negrini sold 5,000 shares of PC Connection stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $81.05, for a total value of $405,250.00. Following the transaction, the director directly owned 60,875 shares in the company, valued at approximately $4,933,918.75. This trade represents a 7.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Chairman Patricia Gallup sold 7,142 shares of PC Connection stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $85.42, for a total value of $610,069.64. Following the completion of the transaction, the chairman owned 6,934,901 shares in the company, valued at $592,379,243.42. This trade represents a 0.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 46,940 shares of company stock worth $3,992,261 in the last 90 days. 56.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PC Connection

Large investors have recently modified their holdings of the stock. Parallel Advisors LLC lifted its position in PC Connection by 200.4% in the first quarter. Parallel Advisors LLC now owns 709 shares of the company's stock valued at $41,000 after purchasing an additional 473 shares during the period. Meeder Asset Management Inc. purchased a new stake in PC Connection in the 1st quarter valued at approximately $44,000. Quantbot Technologies LP acquired a new position in PC Connection during the 2nd quarter worth approximately $105,000. Farther Finance Advisors LLC increased its position in PC Connection by 7,862.1% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,309 shares of the company's stock worth $208,000 after purchasing an additional 2,280 shares during the period. Finally, Fifth Third Bancorp increased its position in PC Connection by 1,551.2% during the 1st quarter. Fifth Third Bancorp now owns 2,675 shares of the company's stock worth $156,000 after purchasing an additional 2,513 shares during the period. Hedge funds and other institutional investors own 42.85% of the company's stock.

About PC Connection

PC Connection, Inc is an information technology solutions provider that supplies computer hardware, software, networking equipment, peripherals and related technology products to organizations in the United States. The company serves businesses, government agencies and educational institutions through its Connection brand and online and sales channels.

In addition to product distribution, PC Connection provides technology services designed to help customers plan, deploy and manage IT environments.

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