PC Connection (NASDAQ:CNXN) Trading Down 7.1% Following Weak Earnings

PC Connection, Inc. (NASDAQ:CNXN)’s share price was down 7.1% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $70.44 and last traded at $66.63. Approximately 1,042 shares traded hands during trading, a decline of 98% from the average daily volume of 66,386 shares. The stock had previously closed at $71.73.

The company reported $0.78 EPS for the quarter, missing the consensus estimate of $0.90 by ($0.12). PC Connection had a return on equity of 10.30% and a net margin of 3.23%. During the same period in the prior year, the company earned $0.90 earnings per share.

PC Connection Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Tuesday, February 25th will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.94%. The ex-dividend date is Tuesday, February 25th. This is a positive change from PC Connection’s previous quarterly dividend of $0.10. PC Connection’s dividend payout ratio (DPR) is presently 11.73%.

Wall Street Analysts Forecast Growth

Separately, StockNews.com raised PC Connection from a “hold” rating to a “buy” rating in a research note on Thursday, November 28th.

Insider Transactions at PC Connection

In other news, Director Negrini David Beffa sold 5,000 shares of the company’s stock in a transaction on Wednesday, November 20th. The stock was sold at an average price of $70.00, for a total transaction of $350,000.00. Following the transaction, the director now owns 71,750 shares of the company’s stock, valued at $5,022,500. This represents a 6.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 56.50% of the company’s stock.

Hedge Funds Weigh In On PC Connection

Several large investors have recently made changes to their positions in CNXN. AlphaQuest LLC acquired a new position in PC Connection in the fourth quarter valued at about $735,000. Victory Capital Management Inc. raised its position in shares of PC Connection by 10.2% during the fourth quarter. Victory Capital Management Inc. now owns 52,668 shares of the company’s stock worth $3,648,000 after purchasing an additional 4,896 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in shares of PC Connection by 2.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 251,721 shares of the company’s stock worth $17,437,000 after buying an additional 6,903 shares in the last quarter. Bailard Inc. grew its holdings in shares of PC Connection by 23.3% during the fourth quarter. Bailard Inc. now owns 7,400 shares of the company’s stock worth $513,000 after buying an additional 1,400 shares in the last quarter. Finally, Denali Advisors LLC grew its holdings in shares of PC Connection by 8.0% during the fourth quarter. Denali Advisors LLC now owns 104,900 shares of the company’s stock worth $7,266,000 after buying an additional 7,800 shares in the last quarter. Institutional investors and hedge funds own 42.85% of the company’s stock.

PC Connection Stock Down 0.7 %

The stock has a 50 day simple moving average of $71.49 and a two-hundred day simple moving average of $71.37. The stock has a market capitalization of $1.67 billion, a P/E ratio of 18.62, a P/E/G ratio of 2.07 and a beta of 0.67.

About PC Connection

PC Connection, Inc, together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories.