PC Connection, Inc. (NASDAQ:CNXN) Sees Large Increase in Short Interest

PC Connection, Inc. (NASDAQ:CNXN) was the recipient of a large growth in short interest in the month of August. As of August 31st, there was short interest totalling 304,300 shares, a growth of 10.4% from the August 15th total of 275,600 shares. Based on an average daily trading volume, of 94,900 shares, the days-to-cover ratio is presently 3.2 days. Approximately 2.5% of the company’s shares are sold short.

Analyst Ratings Changes

Separately, StockNews.com raised PC Connection from a “buy” rating to a “strong-buy” rating in a research note on Thursday, August 29th.

PC Connection Stock Performance

Shares of NASDAQ:CNXN traded up $0.98 on Wednesday, hitting $75.44. 33,414 shares of the company’s stock were exchanged, compared to its average volume of 77,677. The firm’s 50-day moving average is $69.30 and its 200 day moving average is $66.41. The company has a market capitalization of $1.99 billion, a PE ratio of 23.87, a P/E/G ratio of 2.00 and a beta of 0.62. PC Connection has a 1-year low of $51.63 and a 1-year high of $76.39.

PC Connection (NASDAQ:CNXN) last released its quarterly earnings data on Wednesday, July 31st. The company reported $1.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.17. The business had revenue of $736.48 million during the quarter, compared to analysts’ expectations of $703.50 million. PC Connection had a return on equity of 10.51% and a net margin of 3.22%. On average, analysts anticipate that PC Connection will post 3.55 EPS for the current fiscal year.

PC Connection Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 30th. Stockholders of record on Tuesday, August 13th were given a dividend of $0.10 per share. The ex-dividend date of this dividend was Tuesday, August 13th. This represents a $0.40 annualized dividend and a dividend yield of 0.53%. PC Connection’s dividend payout ratio is currently 12.82%.

Insider Activity at PC Connection

In related news, CEO Timothy J. Mcgrath sold 15,377 shares of the business’s stock in a transaction on Tuesday, August 6th. The stock was sold at an average price of $70.18, for a total transaction of $1,079,157.86. Following the completion of the transaction, the chief executive officer now directly owns 277,691 shares of the company’s stock, valued at approximately $19,488,354.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 56.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Pacer Advisors Inc. grew its stake in PC Connection by 23.6% during the 2nd quarter. Pacer Advisors Inc. now owns 1,258,275 shares of the company’s stock worth $80,781,000 after buying an additional 240,312 shares during the last quarter. Vanguard Group Inc. grew its stake in PC Connection by 1.4% during the 1st quarter. Vanguard Group Inc. now owns 1,040,881 shares of the company’s stock worth $68,625,000 after buying an additional 14,838 shares during the last quarter. American Century Companies Inc. grew its stake in PC Connection by 31.1% during the 2nd quarter. American Century Companies Inc. now owns 262,993 shares of the company’s stock worth $16,884,000 after buying an additional 62,398 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in PC Connection by 1.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 232,936 shares of the company’s stock worth $15,656,000 after buying an additional 3,812 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its position in PC Connection by 9.5% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 104,387 shares of the company’s stock worth $6,702,000 after acquiring an additional 9,029 shares during the period. Hedge funds and other institutional investors own 42.85% of the company’s stock.

PC Connection Company Profile

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.