PC Connection (NASDAQ:CNXN) Stock Rating Lowered by Wall Street Zen

Key Points

• PC Connection (NASDAQ:CNXN) was downgraded from a "buy" rating to a "hold" by Wall Street Zen, influencing market sentiment.
• Recently, PC Connection reported earnings of $0.97 per share, exceeding estimates, but had revenue of $759.69 million, falling short of expectations of $774.66 million.
• Insider trading activity included significant share sales by key executives, with a total of 33,005 shares sold in the last quarter.

Wall Street Zen downgraded shares of PC Connection (NASDAQ:CNXN - Free Report) from a buy rating to a hold rating in a research report released on Saturday.

PC Connection Trading Up 2.2%

NASDAQ:CNXN traded up $1.32 on Friday, hitting $60.29. The company had a trading volume of 37,854 shares, compared to its average volume of 105,183. The stock has a market capitalization of $1.53 billion, a price-to-earnings ratio of 18.38, a PEG ratio of 1.71 and a beta of 0.72. The firm has a 50 day moving average of $65.05 and a two-hundred day moving average of $65.03. PC Connection has a 52 week low of $56.72 and a 52 week high of $77.19.

PC Connection (NASDAQ:CNXN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.97 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analysts' expectations of $774.66 million. As a group, equities analysts forecast that PC Connection will post 3.33 EPS for the current year.

PC Connection Dividend Announcement

The firm 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 $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 1.0%. The ex-dividend date is Tuesday, August 12th. PC Connection's dividend payout ratio is 18.29%.

Insider Activity at PC Connection

In other news, CEO Timothy J. Mcgrath sold 26,565 shares of the stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $66.80, for a total transaction of $1,774,542.00. Following the completion of the sale, the chief executive officer directly owned 265,827 shares in the company, valued at $17,757,243.60. This represents a 9.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Jack L. Ferguson sold 1,000 shares of the stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of $66.32, for a total transaction of $66,320.00. Following the sale, the director owned 66,055 shares of the company's stock, valued at approximately $4,380,767.60. This trade represents a 1.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 33,005 shares of company stock valued at $2,205,614. Corporate insiders own 55.20% of the company's stock.

Institutional Investors Weigh In On PC Connection

Large investors have recently modified their holdings of the company. GAMMA Investing LLC grew its holdings in PC Connection by 26,952.8% in the first quarter. GAMMA Investing LLC now owns 135,264 shares of the company's stock worth $8,443,000 after purchasing an additional 134,764 shares during the period. Jacobs Levy Equity Management Inc. grew its holdings in PC Connection by 446.5% in the first quarter. Jacobs Levy Equity Management Inc. now owns 109,460 shares of the company's stock worth $6,832,000 after purchasing an additional 89,429 shares during the period. Millennium Management LLC grew its holdings in PC Connection by 98.8% in the first quarter. Millennium Management LLC now owns 115,237 shares of the company's stock worth $7,193,000 after purchasing an additional 57,257 shares during the period. Nuveen LLC acquired a new stake in PC Connection in the first quarter worth $2,190,000. Finally, Moran Wealth Management LLC acquired a new stake in PC Connection in the second quarter worth $2,154,000. 42.85% of the stock is currently owned by institutional investors and hedge funds.

About PC Connection

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.