PC Connection (NASDAQ:CNXN) Reaches New 12-Month High - What's Next?

Key Points

• PC Connection reached a new 52-week high, trading near $94 and up 0.6%, giving the company a market capitalization of approximately $2.35 billion.
• The company reported stronger-than-expected quarterly results, with EPS of $1.31 versus the $1.00 estimate and revenue of $854 million compared with expectations of $764.79 million.
• Analyst sentiment remains positive but moderated to “Moderate Buy” after recent downgrades, while PC Connection maintains a quarterly dividend of $0.20, or $0.80 annually, yielding about 0.9%.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) reached a new 52-week high on Monday. The company traded as high as $93.89 and last traded at $94.01, with a volume of 124192 shares trading hands. The stock had previously closed at $92.38.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Zacks Research downgraded PC Connection from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Weiss Ratings downgraded PC Connection from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, September 16th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy".

PC Connection Trading Up 0.6%

The company has a market cap of $2.35 billion, a price-to-earnings ratio of 24.65, a PEG ratio of 2.21 and a beta of 0.81. The business has a fifty day moving average of $83.77 and a two-hundred day moving average of $73.33.

PC Connection (NASDAQ:CNXN - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $1.31 EPS for the quarter, beating the consensus estimate of $1.00 by $0.31. The company had revenue of $854.00 million for the quarter, compared to analyst estimates of $764.79 million. PC Connection had a return on equity of 10.90% and a net margin of 3.21%. On average, research analysts forecast that PC Connection, Inc. will post 4.18 EPS for the current fiscal year.

PC Connection Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, August 11th were issued 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 presently 21.16%.

Insider Buying and Selling

In other news, Chairman Patricia Gallup sold 7,142 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $85.42, for a total transaction of $610,069.64. Following the completion of the transaction, the chairman directly owned 6,934,901 shares in the company, valued at approximately $592,379,243.42. This represents a 0.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold a total of 28,568 shares of company stock valued at $2,352,289 in the last quarter. 56.60% of the stock is owned by insiders.

Hedge Funds Weigh In On PC Connection

Several large investors have recently made changes to their positions in the stock. Parallel Advisors LLC increased its position in shares of PC Connection by 200.4% in the 1st 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 last quarter. Meeder Asset Management Inc. acquired a new position in PC Connection during the first quarter worth approximately $44,000. Principal Financial Group Inc. lifted its stake in PC Connection by 2.0% in the first quarter. Principal Financial Group Inc. now owns 55,201 shares of the company's stock valued at $3,227,000 after buying an additional 1,071 shares during the last quarter. Quantbot Technologies LP purchased a new stake in PC Connection in the second quarter valued at approximately $105,000. Finally, Bank of New York Mellon Corp boosted its holdings in shares of PC Connection by 1.2% in the first quarter. Bank of New York Mellon Corp now owns 138,286 shares of the company's stock valued at $8,084,000 after acquiring an additional 1,650 shares during the period. 42.85% of the stock is currently owned by institutional investors and hedge funds.

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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