PC Connection (NASDAQ:CNXN) Raised to Strong-Buy at Zacks Research

PC Connection (NASDAQ:CNXN) was upgraded by research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

Several other brokerages have also commented on CNXN. Weiss Ratings raised PC Connection from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday. Wall Street Zen raised PC Connection from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. One research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Strong Buy”.

PC Connection Trading Up 1.5%

Shares of CNXN stock opened at $83.72 on Thursday. PC Connection has a 12-month low of $54.97 and a 12-month high of $88.31. The stock has a market capitalization of $2.11 billion, a P/E ratio of 22.15, a P/E/G ratio of 1.98 and a beta of 0.88. The firm’s 50 day moving average is $74.23 and its 200 day moving average is $65.93.

PC Connection (NASDAQ:CNXN) last announced its earnings results on Wednesday, July 29th. The company reported $1.31 earnings per share for the quarter, beating analysts’ consensus estimates of $1.00 by $0.31. The business had revenue of $854.00 million during the quarter, compared to analyst estimates of $764.79 million. PC Connection had a net margin of 3.21% and a return on equity of 10.90%. As a group, equities analysts predict that PC Connection will post 4.18 earnings per share for the current year.

Insider Buying and Selling at PC Connection

In related news, Chairman Patricia Gallup sold 7,384 shares of the business’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $71.91, for a total transaction of $530,983.44. Following the completion of the transaction, the chairman directly owned 7,027,747 shares in the company, valued at approximately $505,365,286.77. The trade was a 0.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last 90 days, insiders sold 28,592 shares of company stock worth $2,048,512. 56.60% of the stock is owned by insiders.

Institutional Investors Weigh In On PC Connection

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. lifted its holdings in PC Connection by 63.1% during the third quarter. JPMorgan Chase & Co. now owns 46,021 shares of the company’s stock valued at $2,853,000 after purchasing an additional 17,808 shares in the last quarter. Allspring Global Investments Holdings LLC increased its stake in shares of PC Connection by 137.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 61,038 shares of the company’s stock worth $3,661,000 after purchasing an additional 35,358 shares in the last quarter. Teacher Retirement System of Texas increased its stake in shares of PC Connection by 12.0% in the fourth quarter. Teacher Retirement System of Texas now owns 114,768 shares of the company’s stock worth $6,629,000 after purchasing an additional 12,275 shares in the last quarter. OP Asset Management Ltd bought a new stake in shares of PC Connection during the 1st quarter valued at $686,000. Finally, Royce & Associates LP lifted its stake in shares of PC Connection by 11.2% during the 4th quarter. Royce & Associates LP now owns 79,288 shares of the company’s stock valued at $4,580,000 after buying an additional 7,996 shares in the last quarter. Institutional investors own 42.85% of the company’s stock.

Key Headlines Impacting PC Connection

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

• Positive Sentiment: The earnings and revenue beat, along with reports highlighting record revenue and profit, reinforces investor confidence in PC Connection’s operating momentum. PC Connection Q2 Earnings Call Highlights
• Positive Sentiment: Sidoti raised its FY2026 EPS estimate to $4.08 from $3.93 and its FY2027 estimate to $4.55 from $4.44, implying expectations for continued earnings growth.
• Positive Sentiment: The company declared a quarterly dividend of $0.20 per share, payable August 28 to shareholders of record August 11. The dividend provides ongoing shareholder income, although the indicated yield is approximately 1%.
• Neutral Sentiment: A Zacks comparison examines CNXN’s year-to-date performance against retail and wholesale peers, including CarMax, potentially giving investors additional context on its relative strength. PC Connection Peer Performance Comparison
• Negative Sentiment: Sidoti lowered several near-term forecasts, including Q3 2026 EPS to $1.00 from $1.06, Q4 2026 to $1.00 from $1.05, Q1 2027 to $0.81 from $0.82, and Q4 2027 to $1.18 from $1.21. These reductions signal some caution around quarterly performance despite higher annual estimates.

PC Connection Company Profile

PC Connection, Inc (NASDAQ: CNXN), now operating under the trade name Connection, is a value-added provider of information technology solutions founded in 1982 and headquartered in Merrimack, New Hampshire. The company offers a broad portfolio of hardware and software products sourced from leading technology vendors, alongside professional services designed to help organizations design, deploy and maintain IT environments.

Connection’s product offerings encompass desktop and notebook computers, servers and storage systems, networking and cybersecurity solutions, as well as cloud and virtualization technologies.