PC Connection (NASDAQ:CNXN) Share Price Crosses Above Fifty Day Moving Average – Time to Sell?

PC Connection, Inc. (NASDAQ:CNXN)’s stock price passed above its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $86.77 and traded as high as $87.36. PC Connection shares last traded at $86.83, with a volume of 246,400 shares changing hands.

Key PC Connection News

Here are the key news stories impacting PC Connection this week:

• Positive Sentiment: Q3 results substantially exceeded expectations. PC Connection reported earnings of $1.24 per share, up from $0.97 a year earlier and above the $1.04 consensus estimate. Revenue reached a record $874.31 million, well ahead of the $773.74 million analyst forecast, with demand for AI servers cited as a key growth driver. PC Connection Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Sidoti raised several forward earnings forecasts. The firm increased its FY2026 EPS estimate to $4.38 from $4.08, FY2027 to $4.68 from $4.55, Q4 2026 to $1.06 from $1.00, and Q3 2027 to $1.25 from $1.17. Sidoti projects FY2028 EPS of $5.15, suggesting continued earnings growth if demand remains strong.
• Positive Sentiment: The quarterly dividend was maintained. PC Connection declared a $0.20-per-share dividend payable November 27 to shareholders of record November 10, equivalent to $0.80 annually and a yield of approximately 0.9%. PC Connection Declares Quarterly Dividend
• Negative Sentiment: The earnings beat has not fully resolved cash-flow concerns. A market report noted that investors continue to question the company’s cash position and cash generation, limiting the stock’s reaction despite record sales and stronger-than-expected profit. PC Connection Stock Shrugs Off Q3 Earnings Beat As Cash Questions Linger

Analyst Ratings Changes

Several brokerages recently issued reports on CNXN. Zacks Research downgraded shares of PC Connection from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Weiss Ratings upgraded shares of PC Connection from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, PC Connection presently has an average rating of “Moderate Buy”.

PC Connection Stock Up 1.4%

The stock has a fifty day moving average of $86.77 and a 200-day moving average of $72.32. The firm has a market capitalization of $2.19 billion, a P/E ratio of 21.44, a P/E/G ratio of 1.92 and a beta of 0.81.

PC Connection (NASDAQ:CNXN) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $1.24 earnings per share for the quarter, topping the consensus estimate of $1.04 by $0.20. PC Connection had a return on equity of 11.38% and a net margin of 3.25%. The firm had revenue of $874.31 million for the quarter, compared to analyst estimates of $773.74 million. Sell-side analysts predict that PC Connection, Inc. will post 4.46 EPS for the current fiscal year.

PC Connection Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Tuesday, November 10th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Tuesday, November 10th. PC Connection’s payout ratio is currently 19.75%.

Insider Transactions at PC Connection

In related news, Director David Beffa-Negrini sold 5,000 shares of the firm’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $81.05, for a total value of $405,250.00. Following the transaction, the director owned 60,875 shares in the company, valued at approximately $4,933,918.75. This trade represents a 7.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Patricia Gallup sold 7,192 shares of the stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $87.20, for a total transaction of $627,142.40. Following the sale, the chairman owned 6,899,191 shares in the company, valued at $601,609,455.20. The trade was a 0.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 62,136 shares of company stock valued at $5,312,310. 56.60% of the stock is currently owned by company insiders.

Institutional Trading of PC Connection

Large investors have recently made changes to their positions in the company. Vise Technologies Inc. bought a new position in PC Connection in the third quarter valued at approximately $237,000. Summit Global Investments acquired a new position in PC Connection during the third quarter valued at approximately $306,000. State of Wyoming lifted its stake in PC Connection by 38.9% during the third quarter. State of Wyoming now owns 4,513 shares of the company’s stock worth $407,000 after purchasing an additional 1,263 shares during the last quarter. Signaturefd LLC lifted its stake in PC Connection by 505.4% during the third quarter. Signaturefd LLC now owns 1,011 shares of the company’s stock worth $91,000 after purchasing an additional 844 shares during the last quarter. Finally, Fifth Third Wealth Advisors LLC bought a new stake in PC Connection during the third quarter worth $678,000. Institutional investors and hedge funds own 42.85% of the company’s stock.

About PC Connection

PC Connection, Inc is an information technology solutions provider that supplies technology products, services and expertise to businesses, government agencies, educational institutions and other organizations. The company helps customers plan, acquire, deploy and manage IT environments across workplace, data center, networking, security and cloud infrastructure.

Its offerings include computers, servers, storage systems, networking equipment, software, peripherals and related technology accessories.