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

PC Connection, Inc. (NASDAQ:CNXN) shares hit a new 52-week high on Tuesday . The company traded as high as $88.58 and last traded at $88.5440, with a volume of 67939 shares traded. The stock had previously closed at $85.90.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CNXN. Zacks Research raised PC Connection from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 30th. Weiss Ratings cut PC Connection from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, September 16th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. According to data from MarketBeat, PC Connection currently has an average rating of “Strong Buy”.

PC Connection Trading Up 2.0%

The business has a 50 day simple moving average of $82.32 and a 200-day simple moving average of $71.84. The stock has a market capitalization of $2.24 billion, a price-to-earnings ratio of 23.43, a price-to-earnings-growth ratio of 2.08 and a beta of 0.85.

PC Connection (NASDAQ:CNXN) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $1.31 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.31. PC Connection had a net margin of 3.21% and a return on equity of 10.90%. The business had revenue of $854.00 million for the quarter, compared to analyst estimates of $764.79 million. Research analysts predict that PC Connection, Inc. will post 4.18 EPS for the current year.

PC Connection Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, August 11th were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a yield of 0.9%. PC Connection’s dividend payout ratio (DPR) is currently 21.16%.

Insider Buying and Selling at PC Connection

In other news, Chairman Patricia Gallup sold 7,142 shares of the business’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $85.42, for a total transaction of $610,069.64. Following the completion of the sale, the chairman directly owned 6,934,901 shares of the company’s stock, valued at $592,379,243.42. The trade was a 0.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In the last quarter, insiders have sold 35,710 shares of company stock valued at $2,872,655. 56.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in CNXN. BlackRock Inc. purchased a new stake in PC Connection during the second quarter valued at about $158,833,000. Dimensional Fund Advisors LP lifted its stake in shares of PC Connection by 0.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,526,494 shares of the company’s stock valued at $89,237,000 after purchasing an additional 4,345 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of 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 purchasing an additional 1,650 shares during the period. Denali Advisors LLC grew its holdings in shares of PC Connection by 19.1% during the 2nd 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 purchased a new stake in shares of PC Connection during the 2nd quarter worth about $6,925,000. 42.85% of the stock is owned by hedge funds and other institutional investors.

About PC Connection

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.