Zacks Research Upgrades PC Connection (NASDAQ:CNXN) to Strong-Buy

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

A number of other analysts have also commented on CNXN. Weiss Ratings upgraded shares of PC Connection from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday. 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 analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Strong Buy”.

PC Connection Price Performance

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

PC Connection (NASDAQ:CNXN) last issued its earnings results on Wednesday, July 29th. The company reported $1.31 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.31. The business had revenue of $854.00 million during the quarter, compared to analyst estimates of $764.79 million. PC Connection had a return on equity of 10.90% and a net margin of 3.21%. As a group, sell-side analysts expect that PC Connection will post 4.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other PC Connection news, Chairman Patricia Gallup sold 7,384 shares of the stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $71.91, for a total value of $530,983.44. Following the transaction, the chairman owned 7,027,747 shares of the company’s stock, valued at approximately $505,365,286.77. This represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 28,592 shares of company stock valued at $2,048,512 over the last 90 days. 56.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PC Connection

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Martingale Asset Management L P lifted its stake in shares of PC Connection by 1.3% in the 4th quarter. Martingale Asset Management L P now owns 19,137 shares of the company’s stock worth $1,105,000 after purchasing an additional 252 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of PC Connection by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,900 shares of the company’s stock worth $431,000 after buying an additional 312 shares during the last quarter. Franklin Resources Inc. grew its position in PC Connection by 8.2% during the third quarter. Franklin Resources Inc. now owns 4,616 shares of the company’s stock valued at $286,000 after buying an additional 348 shares during the period. WINTON GROUP Ltd grew its position in PC Connection by 6.7% during the fourth quarter. WINTON GROUP Ltd now owns 6,257 shares of the company’s stock valued at $361,000 after buying an additional 394 shares during the period. Finally, Swiss National Bank grew its position in PC Connection by 1.8% during the fourth quarter. Swiss National Bank now owns 22,500 shares of the company’s stock valued at $1,300,000 after buying an additional 400 shares during the period. Hedge funds and other institutional investors own 42.85% of the company’s stock.

PC Connection News Roundup

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.

PC Connection Company Profile

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.