Zacks Investment Research Lowers PC Connection (CNXN) to Sell

Share on StockTwits

PC Connection (NASDAQ:CNXN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday, October 23rd.

According to Zacks, “PC Connection, Inc. is a direct marketer of brand-name personal computers and related peripherals, software, and networking products to business, education, government, and consumer end users located primarily in the United States. “

A number of other equities analysts have also recently issued reports on the stock. BidaskClub cut shares of PC Connection from a “buy” rating to a “hold” rating in a research note on Wednesday, October 3rd. Sidoti cut shares of PC Connection from a “buy” rating to a “neutral” rating in a research note on Monday, July 16th. Roth Capital set a $40.00 price objective on shares of PC Connection and gave the company a “buy” rating in a research note on Friday, August 3rd. Finally, ValuEngine cut shares of PC Connection from a “hold” rating to a “sell” rating in a research note on Friday, October 19th. Two research analysts have rated the stock with a sell rating and three have assigned a buy rating to the company’s stock. PC Connection currently has a consensus rating of “Hold” and an average target price of $36.50.

Shares of CNXN traded up $1.24 during mid-day trading on Tuesday, hitting $32.08. 66,500 shares of the company traded hands, compared to its average volume of 59,344. PC Connection has a one year low of $22.66 and a one year high of $43.05. The stock has a market capitalization of $824.31 million, a P/E ratio of 17.43, a price-to-earnings-growth ratio of 1.58 and a beta of 1.35.

PC Connection (NASDAQ:CNXN) last released its quarterly earnings results on Thursday, August 2nd. The company reported $0.68 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.63 by $0.05. PC Connection had a net margin of 2.24% and a return on equity of 11.73%. The business had revenue of $706.57 million for the quarter, compared to analysts’ expectations of $696.68 million. During the same period in the prior year, the firm earned $0.51 earnings per share. PC Connection’s revenue was down 5.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that PC Connection will post 2.44 EPS for the current fiscal year.

In other PC Connection news, Director Barbara Duckett sold 2,000 shares of the firm’s stock in a transaction that occurred on Friday, September 14th. The shares were sold at an average price of $41.46, for a total value of $82,920.00. Following the transaction, the director now directly owns 12,877 shares of the company’s stock, valued at $533,880.42. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director David Beffa-Negrini sold 6,523 shares of the firm’s stock in a transaction that occurred on Monday, August 13th. The shares were sold at an average price of $37.14, for a total transaction of $242,264.22. The disclosure for this sale can be found here. 57.10% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of CNXN. Schwab Charles Investment Management Inc. raised its holdings in PC Connection by 10.6% in the first quarter. Schwab Charles Investment Management Inc. now owns 58,138 shares of the company’s stock worth $1,454,000 after purchasing an additional 5,594 shares during the period. Northern Trust Corp raised its holdings in PC Connection by 0.3% in the first quarter. Northern Trust Corp now owns 733,861 shares of the company’s stock worth $18,347,000 after purchasing an additional 2,359 shares during the period. Russell Investments Group Ltd. raised its holdings in PC Connection by 11.4% in the first quarter. Russell Investments Group Ltd. now owns 71,607 shares of the company’s stock worth $1,790,000 after purchasing an additional 7,344 shares during the period. Royal Bank of Canada raised its holdings in PC Connection by 3.3% in the first quarter. Royal Bank of Canada now owns 327,009 shares of the company’s stock worth $8,175,000 after purchasing an additional 10,583 shares during the period. Finally, Acadian Asset Management LLC raised its holdings in PC Connection by 135.4% in the second quarter. Acadian Asset Management LLC now owns 17,006 shares of the company’s stock worth $564,000 after purchasing an additional 9,781 shares during the period. Institutional investors own 40.97% of the company’s stock.

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.

Recommended Story: Should I follow buy, hold and sell recommendations?

Get a free copy of the Zacks research report on PC Connection (CNXN)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for PC Connection Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PC Connection and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply