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

PC Connection, Inc. (NASDAQ:CNXN) shares hit a new 52-week high on Tuesday. The stock traded as high as $90.67 and last traded at $89.7210, with a volume of 3458 shares. The stock had previously closed at $89.70.

Analysts Set New Price Targets

Several brokerages have commented on CNXN. Zacks Research raised shares of PC Connection from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. Weiss Ratings lowered 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 given a Buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Strong Buy”.

PC Connection Stock Performance

The business has a 50-day simple moving average of $82.94 and a 200-day simple moving average of $72.45. The company has a market cap of $2.25 billion, a price-to-earnings ratio of 23.63, a price-to-earnings-growth ratio of 2.14 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 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. Research analysts anticipate that PC Connection, Inc. will post 4.18 EPS for the current year.

PC Connection Announces Dividend

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

Insider Buying and Selling

In other PC Connection news, Chairman Patricia Gallup sold 7,142 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $85.42, for a total value of $610,069.64. Following the sale, the chairman directly owned 6,934,901 shares of the company’s stock, valued at approximately $592,379,243.42. This represents a 0.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. In the last ninety days, insiders have sold 35,710 shares of company stock worth $2,872,655. Insiders own 56.60% of the company’s stock.

Institutional Investors Weigh In On PC Connection

Institutional investors have recently modified their holdings of the company. PDT Partners LLC purchased a new position in PC Connection in the second quarter valued at $3,557,000. Hsbc Holdings PLC purchased a new stake in PC Connection during the second quarter worth approximately $1,138,000. Legal & General Group Plc purchased a new stake in shares of PC Connection during the 2nd quarter worth approximately $1,872,000. Allspring Global Investments Holdings LLC lifted its position in PC Connection by 137.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 61,038 shares of the company’s stock valued at $3,661,000 after acquiring an additional 35,358 shares during the last quarter. Finally, Man Group plc acquired a new stake in shares of PC Connection in the 2nd quarter valued at 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.