PC Connection (NASDAQ:CNXN) Shares Down 7.1% Following Weak Earnings

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) fell 7.1% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $70.44 and last traded at $66.63. 1,042 shares traded 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 (EPS) for the quarter, missing analysts' consensus estimates of $0.90 by ($0.12). PC Connection had a net margin of 3.11% and a return on equity of 9.74%. During the same period last year, the firm earned $0.90 earnings per share.

PC Connection Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Tuesday, February 25th will be given a $0.15 dividend. The ex-dividend date is Tuesday, February 25th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.92%. This is an increase from PC Connection's previous quarterly dividend of $0.10. PC Connection's payout ratio is currently 18.24%.

Analyst Ratings Changes

Separately, StockNews.com raised shares of PC Connection from a "hold" rating to a "buy" rating in a report on Thursday, November 28th.

Insider Transactions at PC Connection

In related news, Director Negrini David Beffa sold 5,000 shares of the firm's stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $70.00, for a total transaction of $350,000.00. Following the transaction, the director now directly owns 71,750 shares of the company's stock, 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 56.90% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in CNXN. Point72 DIFC Ltd acquired a new stake in PC Connection during the third quarter worth approximately $28,000. Signaturefd LLC lifted its position in shares of 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 holdings in shares of PC Connection by 125.5% during the 3rd quarter. CWM LLC now owns 850 shares of the company's stock worth $64,000 after purchasing an additional 473 shares in the last quarter. nVerses Capital LLC increased its position in shares of 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 acquired a new position in PC Connection in the third quarter valued at about $243,000. Institutional investors and hedge funds own 42.85% of the company's stock.

PC Connection Price Performance

The firm has a market cap of $1.71 billion, a P/E ratio of 19.74, a PEG ratio of 1.87 and a beta of 0.67. The company's 50-day moving average is $71.31 and its two-hundred day moving average is $71.41.

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.