PC Connection (NASDAQ:CNXN) Upgraded by Zacks Research to Strong-Buy Rating

PC Connection (NASDAQ:CNXN) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday,Zacks.com reports.

Several other research analysts have also issued reports on the stock. Wall Street Zen upgraded shares of PC Connection from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Weiss Ratings raised shares of PC Connection from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Strong Buy”.

PC Connection Stock Up 1.5%

Shares of CNXN stock opened at $83.72 on Thursday. The stock has a market cap of $2.11 billion, a price-to-earnings ratio of 22.15, a PEG ratio of 1.98 and a beta of 0.88. The business’s fifty day moving average is $74.23 and its 200 day moving average is $65.93. PC Connection has a twelve month low of $54.97 and a twelve month high of $88.31.

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, topping analysts’ consensus estimates of $1.00 by $0.31. PC Connection had a return on equity of 10.90% and a net margin of 3.21%.The business had revenue of $854.00 million during the quarter, compared to the consensus estimate of $764.79 million. Equities research analysts expect that PC Connection will post 4.18 earnings per share for the current fiscal year.

Insider Activity at PC Connection

In other news, Chairman Patricia Gallup sold 7,142 shares of the firm’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $72.86, for a total transaction of $520,366.12. Following the completion of the transaction, the chairman directly owned 7,006,321 shares in the company, valued at $510,480,548.06. This trade represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold 28,592 shares of company stock valued at $2,048,512 over the last 90 days. Corporate insiders own 56.60% of the company’s stock.

Institutional Trading of PC Connection

Several institutional investors have recently bought and sold shares of CNXN. EverSource Wealth Advisors LLC increased its stake in PC Connection by 625.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 580 shares of the company’s stock valued at $38,000 after purchasing an additional 500 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of PC Connection by 196.7% during the third quarter. PNC Financial Services Group Inc. now owns 629 shares of the company’s stock valued at $39,000 after buying an additional 417 shares during the last quarter. Parallel Advisors LLC grew its holdings in shares of PC Connection by 200.4% during the first quarter. Parallel Advisors LLC now owns 709 shares of the company’s stock valued at $41,000 after buying an additional 473 shares during the last quarter. Meeder Asset Management Inc. bought a new stake in shares of PC Connection during the first quarter valued at approximately $44,000. Finally, Quarry LP bought a new stake in shares of PC Connection during the third quarter valued at approximately $75,000. 42.85% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting PC Connection

Here are the key news stories impacting PC Connection this week:

• Positive Sentiment: The earnings and revenue beat, along with reports highlighting record revenue and profit, reinforces investor confidence in PC Connection’s operating momentum. PC Connection Q2 Earnings Call Highlights
• Positive Sentiment: Sidoti raised its FY2026 EPS estimate to $4.08 from $3.93 and its FY2027 estimate to $4.55 from $4.44, implying expectations for continued earnings growth.
• Positive Sentiment: The company declared a quarterly dividend of $0.20 per share, payable August 28 to shareholders of record August 11. The dividend provides ongoing shareholder income, although the indicated yield is approximately 1%.
• Neutral Sentiment: A Zacks comparison examines CNXN’s year-to-date performance against retail and wholesale peers, including CarMax, potentially giving investors additional context on its relative strength. PC Connection Peer Performance Comparison
• Negative Sentiment: Sidoti lowered several near-term forecasts, including Q3 2026 EPS to $1.00 from $1.06, Q4 2026 to $1.00 from $1.05, Q1 2027 to $0.81 from $0.82, and Q4 2027 to $1.18 from $1.21. These reductions signal some caution around quarterly performance despite higher annual estimates.

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.