PC Connection (NASDAQ:CNXN) Reaches New 1-Year High – Should You Buy?

PC Connection, Inc. (NASDAQ:CNXN)’s share price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $75.30 and last traded at $74.6810, with a volume of 12414 shares changing hands. The stock had previously closed at $72.99.

Analysts Set New Price Targets

CNXN has been the topic of several recent research reports. Weiss Ratings upgraded shares of PC Connection from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, June 3rd. Wall Street Zen upgraded shares of PC Connection from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy”.

PC Connection Stock Performance

The company has a fifty day simple moving average of $68.25 and a 200 day simple moving average of $63.04. The stock has a market capitalization of $1.83 billion, a price-to-earnings ratio of 21.06, a P/E/G ratio of 1.88 and a beta of 0.88.

PC Connection (NASDAQ:CNXN) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.15. The company had revenue of $721.87 million during the quarter, compared to analysts’ expectations of $696.09 million. PC Connection had a return on equity of 10.17% and a net margin of 3.02%. As a group, equities analysts predict that PC Connection, Inc. will post 3.93 earnings per share for the current fiscal year.

PC Connection Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 12th were given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, May 12th. PC Connection’s dividend payout ratio is currently 23.26%.

Insider Activity

In other news, Chairman Patricia Gallup sold 7,384 shares of the stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $71.91, for a total transaction of $530,983.44. Following the completion of the sale, the chairman directly owned 7,027,747 shares in the company, valued at $505,365,286.77. This represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In the last 90 days, insiders have sold 21,450 shares of company stock valued at $1,528,146. 56.60% of the stock is currently owned by insiders.

Institutional Trading of PC Connection

Institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC raised its position in shares of PC Connection by 625.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 580 shares of the company’s stock worth $38,000 after acquiring an additional 500 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in shares of PC Connection by 196.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 629 shares of the company’s stock valued at $39,000 after purchasing an additional 417 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of PC Connection by 200.4% during 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 in the last quarter. Meeder Asset Management Inc. acquired a new stake in PC Connection during the first quarter worth approximately $44,000. Finally, Quarry LP acquired a new stake in PC Connection during the third quarter worth approximately $75,000. Institutional investors own 42.85% of the company’s stock.

About PC Connection

PC Connection, Inc (NASDAQ: CNXN), now operating under the trade name Connection, is a value-added provider of information technology solutions founded in 1982 and headquartered in Merrimack, New Hampshire. The company offers a broad portfolio of hardware and software products sourced from leading technology vendors, alongside professional services designed to help organizations design, deploy and maintain IT environments.

Connection’s product offerings encompass desktop and notebook computers, servers and storage systems, networking and cybersecurity solutions, as well as cloud and virtualization technologies.