PC Connection (NASDAQ:CNXN) Shares Gap Down on Disappointing Earnings

PC Connection, Inc. (NASDAQ:CNXN) 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 EPS for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.14). PC Connection had a return on equity of 10.21% and a net margin of 2.98%. The firm had revenue of $632.03 million during the quarter, compared to analyst estimates of $694.19 million. During the same period in the prior year, the business posted $0.56 EPS.

PC Connection Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 29th. Shareholders of record on Tuesday, May 14th will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Monday, May 13th. This represents a $0.40 dividend on an annualized basis and a yield of 0.65%. PC Connection’s payout ratio is presently 12.82%.

Wall Street Analyst Weigh In

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

Institutional Investors Weigh In On PC Connection

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pacer Advisors Inc. grew its holdings in shares of PC Connection by 65.0% during the 4th quarter. Pacer Advisors Inc. now owns 672,203 shares of the company’s stock valued at $45,179,000 after acquiring an additional 264,687 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in PC Connection by 3.0% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 229,124 shares of the company’s stock worth $12,231,000 after purchasing an additional 6,743 shares during the last quarter. Brown Advisory Inc. raised its stake 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 worth $20,988,000 after purchasing an additional 43,578 shares in the last quarter. Rhumbline Advisers lifted its holdings in shares of PC Connection by 151.5% during the 3rd quarter. Rhumbline Advisers now owns 93,488 shares of the company’s stock valued at $4,990,000 after buying an additional 56,310 shares during the last quarter. Finally, Exchange Traded Concepts LLC grew its stake in shares of PC Connection by 50.5% in the 4th quarter. Exchange Traded Concepts LLC now owns 17,313 shares of the company’s stock valued at $1,164,000 after buying an additional 5,806 shares in the last quarter. Hedge funds and other institutional investors own 42.85% of the company’s stock.

PC Connection Price Performance

The stock has a market cap of $1.61 billion, a price-to-earnings ratio of 19.61, a P/E/G ratio of 1.78 and a beta of 0.67. The business has a fifty day moving average of $64.54 and a 200 day moving average of $63.44.

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.