PC Connection (NASDAQ:CNXN) Shares Down 7.1% After Earnings Miss

PC Connection, Inc. (NASDAQ:CNXN) shares fell 7.1% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $70.44 and last traded at $66.63. 1,042 shares changed hands during trading, a decline of 98% from the average session volume of 66,386 shares. The stock had previously closed at $71.73.

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

PC Connection Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Tuesday, February 25th will be issued a $0.15 dividend. The ex-dividend date is Tuesday, February 25th. This represents a $0.60 annualized dividend and a yield of 0.94%. This is a boost from PC Connection’s previous quarterly dividend of $0.10. PC Connection’s payout ratio is 12.16%.

Analyst Ratings Changes

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

Insiders Place Their Bets

In related news, Director Negrini David Beffa sold 5,000 shares of the stock in a transaction dated Wednesday, November 20th. The stock was sold at an average price of $70.00, for a total transaction of $350,000.00. Following the completion of the sale, the director now owns 71,750 shares in the company, valued at approximately $5,022,500. This trade represents a 6.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 56.90% of the stock is currently owned by insiders.

Institutional Trading of PC Connection

Hedge funds have recently made changes to their positions in the business. Point72 DIFC Ltd bought a new position in shares of PC Connection during the third quarter valued at approximately $28,000. Signaturefd LLC boosted its holdings in PC Connection by 328.1% during the 3rd quarter. Signaturefd LLC now owns 488 shares of the company’s stock valued at $37,000 after acquiring an additional 374 shares during the period. CWM LLC grew its position in PC Connection by 125.5% in the 3rd quarter. CWM LLC now owns 850 shares of the company’s stock valued at $64,000 after acquiring an additional 473 shares during the last quarter. nVerses Capital LLC increased its stake in PC Connection by 1,000.0% in the third quarter. nVerses Capital LLC now owns 1,100 shares of the company’s stock worth $83,000 after purchasing an additional 1,000 shares during the period. Finally, Intech Investment Management LLC bought a new stake in shares of PC Connection during the third quarter worth $243,000. 42.85% of the stock is currently owned by hedge funds and other institutional investors.

PC Connection Stock Down 10.8 %

The stock’s 50 day moving average price is $71.49 and its 200-day moving average price is $71.37. The stock has a market capitalization of $1.68 billion, a PE ratio of 18.76, a price-to-earnings-growth 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.