PC Connection (NASDAQ:CNXN) Reaches New 12-Month High – Should You Buy?

Shares of PC Connection, Inc. (NASDAQ:CNXN) hit a new 52-week high during trading on Wednesday . The company traded as high as $88.35 and last traded at $87.3090, with a volume of 93108 shares trading hands. The stock had previously closed at $85.20.

Analyst Upgrades and Downgrades

CNXN has been the subject of a number of analyst reports. Weiss Ratings raised shares of PC Connection from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, July 30th. Zacks Research raised shares of PC Connection from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the stock. Based on data from MarketBeat, PC Connection has a consensus rating of “Strong Buy”.

PC Connection Stock Performance

The stock has a market capitalization of $2.20 billion, a price-to-earnings ratio of 22.98, a price-to-earnings-growth ratio of 2.05 and a beta of 0.85. The business has a fifty day simple moving average of $81.10 and a 200 day simple moving average of $70.76.

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

PC Connection Announces Dividend

The firm 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 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, August 11th. PC Connection’s dividend payout ratio (DPR) is currently 21.16%.

Insiders Place Their Bets

In other news, Chairman Patricia Gallup sold 7,142 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $78.96, for a total value of $563,932.32. Following the sale, the chairman directly owned 6,949,185 shares in the company, valued at approximately $548,707,647.60. This trade represents a 0.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold 35,710 shares of company stock valued at $2,760,597 over the last quarter. Company insiders own 56.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CNXN. BlackRock Inc. bought a new position in PC Connection in the 2nd quarter valued at approximately $158,833,000. Dimensional Fund Advisors LP grew its holdings in PC Connection by 0.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,526,494 shares of the company’s stock worth $89,237,000 after acquiring an additional 4,345 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in PC Connection by 1.2% during the 1st quarter. Bank of New York Mellon Corp now owns 138,286 shares of the company’s stock worth $8,084,000 after acquiring an additional 1,650 shares during the last quarter. Denali Advisors LLC lifted its holdings in shares of PC Connection by 19.1% during the second quarter. Denali Advisors LLC now owns 99,200 shares of the company’s stock worth $7,241,000 after purchasing an additional 15,900 shares during the period. Finally, Man Group plc acquired a new position in PC Connection during the 2nd quarter worth about $6,925,000. Institutional investors and hedge funds own 42.85% of the company’s stock.

PC Connection Company Profile

PC Connection, Inc (NASDAQ: CNXN) is an information technology solutions provider serving businesses, government agencies, educational institutions and other organizations. The company supplies technology products and provides services designed to help customers plan, implement and manage their IT environments.

Its offerings include computers and mobile devices, servers, storage systems, networking equipment, software, peripherals and communications products. PC Connection also provides professional and lifecycle services, including consulting, systems integration, cloud and data-center solutions, cybersecurity, managed services, deployment, configuration and technical support.

Founded in 1982, the company operates primarily in the United States through brands and business units that include Connection, GovConnection and MoreDirect.