PC Connection (NASDAQ:CNXN) Shares Gap Down Following Weak Earnings

PC Connection, Inc. (NASDAQ:CNXN) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $61.96, but opened at $59.48. PC Connection shares last traded at $58.31, with a volume of 9,686 shares trading hands.

The company reported $0.50 earnings per share for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.14). The company had revenue of $632.03 million for the quarter, compared to analysts’ expectations of $694.19 million. PC Connection had a net margin of 2.98% and a return on equity of 10.21%. During the same quarter in the previous year, the business posted $0.56 EPS.

PC Connection Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 29th. Investors of record on Tuesday, May 14th will be paid a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 0.65%. The ex-dividend date is Monday, May 13th. PC Connection’s dividend payout ratio is currently 12.82%.

Wall Street Analyst Weigh In

Separately, StockNews.com downgraded shares of PC Connection from a “strong-buy” rating to a “buy” rating in a research report on Friday, April 26th.

Institutional Trading of PC Connection

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Pacer Advisors Inc. increased its holdings in PC Connection by 65.0% in the 4th quarter. Pacer Advisors Inc. now owns 672,203 shares of the company’s stock worth $45,179,000 after acquiring an additional 264,687 shares in the last quarter. Rhumbline Advisers raised its position in shares of PC Connection by 151.5% during the 3rd quarter. Rhumbline Advisers now owns 93,488 shares of the company’s stock worth $4,990,000 after purchasing an additional 56,310 shares during the last quarter. Brown Advisory Inc. lifted its stake in PC Connection by 12.5% in the 3rd quarter. Brown Advisory Inc. now owns 393,186 shares of the company’s stock valued at $20,988,000 after buying an additional 43,578 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its holdings in PC Connection by 34.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 95,358 shares of the company’s stock worth $6,287,000 after buying an additional 24,539 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC raised its holdings in shares of PC Connection by 80.7% during the fourth quarter. Campbell & CO Investment Adviser LLC now owns 24,577 shares of the company’s stock valued at $1,652,000 after acquiring an additional 10,979 shares during the last quarter. 42.85% of the stock is currently owned by hedge funds and other institutional investors.

PC Connection Stock Up 3.2 %

The firm has a 50-day moving average price of $64.54 and a two-hundred day moving average price of $63.44. The firm has a market cap of $1.61 billion, a PE ratio of 19.61, a P/E/G ratio of 1.78 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.