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

Shares of PC Connection, Inc. (NASDAQ:CNXN) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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 traded.

The company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.14). PC Connection had a return on equity of 10.55% and a net margin of 2.92%. The firm had revenue of $632.03 million during the quarter, compared to analysts’ expectations of $694.19 million. During the same period in the previous year, the firm posted $0.56 earnings per share.

PC Connection Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 15th. Investors of record on Tuesday, February 27th were issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.68%. This is an increase from PC Connection’s previous quarterly dividend of $0.08. The ex-dividend date of this dividend was Monday, February 26th. PC Connection’s payout ratio is presently 12.66%.

Wall Street Analysts Forecast Growth

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

Institutional Trading of PC Connection

Institutional investors and hedge funds have recently bought and sold shares of the business. Maryland State Retirement & Pension System acquired a new stake in PC Connection in the 3rd quarter valued at $222,000. Brown Advisory Inc. raised its holdings in shares of PC Connection by 12.5% during 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 during the period. Allspring Global Investments Holdings LLC lifted its position in PC Connection by 0.7% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 107,655 shares of the company’s stock worth $5,747,000 after acquiring an additional 708 shares in the last quarter. Teacher Retirement System of Texas boosted its holdings in PC Connection by 30.9% in the 3rd quarter. Teacher Retirement System of Texas now owns 17,163 shares of the company’s stock worth $916,000 after acquiring an additional 4,051 shares during the period. Finally, Illinois Municipal Retirement Fund purchased a new position in PC Connection in the 3rd quarter worth approximately $332,000. Institutional investors and hedge funds own 42.85% of the company’s stock.

PC Connection Price Performance

The company has a market cap of $1.54 billion, a price-to-earnings ratio of 19.61, a P/E/G ratio of 1.78 and a beta of 0.67. The company’s 50-day simple moving average is $64.87 and its 200-day simple moving average is $63.41.

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.