PC Connection (NASDAQ:CNXN) Stock Crosses Above 50 Day Moving Average – Here’s What Happened

PC Connection, Inc. (NASDAQ:CNXN)’s share price crossed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $86.77 and traded as high as $87.36. PC Connection shares last traded at $86.83, with a volume of 246,400 shares changing hands.

Key Headlines Impacting PC Connection

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

• Positive Sentiment: Q3 results substantially exceeded expectations. PC Connection reported earnings of $1.24 per share, up from $0.97 a year earlier and above the $1.04 consensus estimate. Revenue reached a record $874.31 million, well ahead of the $773.74 million analyst forecast, with demand for AI servers cited as a key growth driver. PC Connection Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Sidoti raised several forward earnings forecasts. The firm increased its FY2026 EPS estimate to $4.38 from $4.08, FY2027 to $4.68 from $4.55, Q4 2026 to $1.06 from $1.00, and Q3 2027 to $1.25 from $1.17. Sidoti projects FY2028 EPS of $5.15, suggesting continued earnings growth if demand remains strong.
• Positive Sentiment: The quarterly dividend was maintained. PC Connection declared a $0.20-per-share dividend payable November 27 to shareholders of record November 10, equivalent to $0.80 annually and a yield of approximately 0.9%. PC Connection Declares Quarterly Dividend
• Negative Sentiment: The earnings beat has not fully resolved cash-flow concerns. A market report noted that investors continue to question the company’s cash position and cash generation, limiting the stock’s reaction despite record sales and stronger-than-expected profit. PC Connection Stock Shrugs Off Q3 Earnings Beat As Cash Questions Linger

Wall Street Analyst Weigh In

CNXN has been the subject of several analyst reports. Weiss Ratings raised shares of PC Connection from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Zacks Research downgraded shares of PC Connection from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, PC Connection currently has an average rating of “Moderate Buy”.

PC Connection Price Performance

The firm has a fifty day simple moving average of $86.77 and a 200 day simple moving average of $72.32. The company has a market cap of $2.19 billion, a price-to-earnings ratio of 21.44, a P/E/G ratio of 1.92 and a beta of 0.81.

PC Connection (NASDAQ:CNXN) last released its quarterly earnings results on Wednesday, October 28th. The company reported $1.24 EPS for the quarter, beating analysts’ consensus estimates of $1.04 by $0.20. PC Connection had a net margin of 3.25% and a return on equity of 11.38%. The company had revenue of $874.31 million for the quarter, compared to analyst estimates of $773.74 million. Analysts expect that PC Connection, Inc. will post 4.46 earnings per share for the current year.

PC Connection Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Tuesday, November 10th will be paid a $0.20 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $0.80 dividend on an annualized basis and a yield of 0.9%. PC Connection’s dividend payout ratio (DPR) is presently 19.75%.

Insider Buying and Selling at PC Connection

In other news, Director David Beffa-Negrini sold 5,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $81.05, for a total value of $405,250.00. Following the completion of the sale, the director directly owned 60,875 shares of the company’s stock, valued at approximately $4,933,918.75. This represents a 7.59% 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 this hyperlink. Also, Chairman Patricia Gallup sold 8,004 shares of the stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $86.57, for a total value of $692,906.28. Following the completion of the sale, the chairman directly owned 6,906,383 shares of the company’s stock, valued at $597,885,576.31. This represents a 0.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 62,136 shares of company stock worth $5,312,310 in the last quarter. Insiders own 56.60% of the company’s stock.

Hedge Funds Weigh In On PC Connection

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. PDT Partners LLC bought a new stake in PC Connection during the second quarter worth about $3,557,000. Bank of America Corp DE acquired a new stake in shares of PC Connection during the second quarter worth approximately $3,080,000. Legal & General Group Plc acquired a new stake in shares of PC Connection during the second quarter worth approximately $1,872,000. Hsbc Holdings PLC bought a new position in shares of PC Connection in the second quarter valued at approximately $1,138,000. Finally, Allspring Global Investments Holdings LLC raised its stake in shares of 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. Institutional investors own 42.85% of the company’s stock.

About PC Connection

PC Connection, Inc is an information technology solutions provider that supplies technology products, services and expertise to businesses, government agencies, educational institutions and other organizations. The company helps customers plan, acquire, deploy and manage IT environments across workplace, data center, networking, security and cloud infrastructure.

Its offerings include computers, servers, storage systems, networking equipment, software, peripherals and related technology accessories.