PC Connection, Inc.
- Open
- 78.91
- Day high
- 79.95
- Day low
- 77.98
- Prev close
- 79.87
- Volume
- 32K
- Mkt cap
- $2.0B
- P/E (TTM)
- 20.9
- EPS (TTM)
- $3.79
- P/B
- 2.1
- P/S
- 0.7
- Yield
- 0.95%
- Per share
- $0.75
- ▼Insiders net selling -$12.4M over the last 3 months (0 open-market buys, 34 sales)
- 🏛Institutions accumulating (13F)
PC Connection, Inc. (CNXN) is a Technology company listed on NASDAQ. The stock is up 24% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 34 sales (SEC Form 4).
PC Connection, Inc. (CNXN) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CNXN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $1.00 | $1.31 | +31.5% | $854M | +11.7% |
| Apr 29, 2026 | $0.62 | $0.77 | +24.2% | $722M | +3.5% |
| Feb 4, 2026 | $0.86 | $0.91 | +6.1% | $703M | -1.1% |
| Oct 29, 2025 | $1.01 | $0.97 | -4.0% | $709M | -3.8% |
| Jul 30, 2025 | $0.91 | $0.97 | +6.2% | $760M | -2.0% |
| Apr 30, 2025 | $0.42 | $0.60 | +42.2% | $701M | +8.7% |
| Feb 5, 2025 | $0.90 | $0.78 | -13.6% | $709M | -0.7% |
| Oct 30, 2024 | $1.00 | $1.02 | +1.7% | $725M | +1.0% |
| Jul 31, 2024 | $0.83 | $0.99 | +19.4% | $736M | +5.0% |
| May 1, 2024 | $0.64 | $0.50 | -21.5% | $632M | -8.8% |
| Feb 14, 2024 | $0.87 | $0.90 | +3.0% | $696M | +3.5% |
| Nov 1, 2023 | $0.81 | $0.97 | +19.9% | $693M | -6.3% |
CNXN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 19, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 5,066 | $78.16 |
| Aug 19, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 3,220 | $78.83 |
| Aug 19, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 3,922 | $78.36 |
| Aug 19, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 718 | $80.21 |
| Aug 19, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 1,358 | $79.61 |
| Aug 6, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 3,968 | $85.79 |
| Aug 6, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 3,041 | $87.01 |
| Aug 6, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 3,383 | $84.09 |
| Aug 6, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 133 | $87.47 |
| Aug 6, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 3,559 | $84.77 |
| Aug 6, 2026 | GALLUP PATRICIAdirector, 10 percent owner, officer: Chairman & Chief Admin Officer | Sell | 200 | $85.82 |
| Aug 5, 2026 | MCGRATH TIMOTHY Jofficer: President & CEO | Sell | 12,630 | $86.23 |
| Aug 5, 2026 | MCGRATH TIMOTHY Jofficer: President & CEO | Sell | 1,842 | $87.00 |
| Aug 5, 2026 | MCGRATH TIMOTHY Jofficer: President & CEO | Sell | 1,000 | $84.17 |
| Aug 5, 2026 | MCGRATH TIMOTHY Jofficer: President & CEO | Sell | 22,049 | $85.49 |
Source: CNXN SEC Form 4 filings, latest Aug 19, 2026. For informational purposes only — not investment advice.
See the full CNXN insider & 13F page →PC Connection, Inc. company profile
Overview
PC Connection, Inc. (NASDAQ:CNXN) is a technology distribution company founded in 1982 and headquartered in Merrimack, New Hampshire. The company went public in 1998 and has established itself as a leading provider of information technology solutions across multiple market segments. PC Connection serves as an intermediary between technology manufacturers and end customers, offering a comprehensive portfolio of IT products and services ranging from basic computer hardware to complex data center solutions and emerging technologies like artificial intelligence infrastructure.
Business
PC Connection operates as a technology distributor and solutions provider in the IT channel ecosystem. The company functions as a middleman between technology manufacturers (such as Dell, HP, Cisco, Microsoft, and others) and end customers, providing both products and value-added services. The company operates through three distinct business segments: 1. **Business Solutions (approximately 37% of revenue)**: This segment targets small to medium-sized businesses (SMBs) and small office/home office (SOHO) customers. It offers a broad range of IT products including computers, networking equipment, software, and peripherals through direct marketing, telemarketing, and e-commerce platforms. This segment typically achieves the highest gross margins due to the nature of SMB purchasing patterns and less price-sensitive customer base. 2. **Enterprise Solutions (approximately 42% of revenue)**: This segment serves medium-to-large corporate accounts with more complex IT infrastructure needs. It provides comprehensive solutions including data center equipment, enterprise software, networking solutions, and professional services. The segment often involves larger project-based sales with longer sales cycles and typically operates at lower gross margins due to competitive pricing pressures in the enterprise market. 3. **Public Sector Solutions (approximately 21% of revenue)**: This segment focuses on government agencies, educational institutions, and healthcare organizations. It leverages specialized contract vehicles and procurement processes required for public sector sales. The segment has shown strong growth recently, particularly in federal government contracts, though it typically operates at the lowest gross margins due to competitive bidding processes. The company markets its products through multiple channels including dedicated websites (connection.com, macconnection.com), outbound sales teams, field sales representatives, and digital marketing campaigns. PC Connection has evolved from a traditional product reseller to a solutions provider, increasingly focusing on emerging technologies such as artificial intelligence, cybersecurity, cloud infrastructure, and data center modernization.
Revenue model
PC Connection generates revenue through product sales and value-added services in the technology distribution market. The company's primary revenue model involves purchasing IT products from manufacturers at wholesale prices and reselling them to end customers at marked-up retail prices, capturing the margin differential. The company's revenue streams include: 1. **Product Sales**: The bulk of revenue comes from selling hardware (computers, servers, networking equipment), software licenses, and peripheral devices. The company maintains inventory and provides immediate fulfillment capabilities, which customers value for quick deployment needs. 2. **Professional Services**: PC Connection provides configuration, installation, integration, and support services, which typically carry higher margins than product sales. These services help differentiate the company from pure-play e-commerce competitors and create stickier customer relationships. 3. **Vendor Rebates and Incentives**: The company receives rebates, marketing development funds, and volume incentives from manufacturers based on sales performance, which supplement gross margins. Several factors influence the company's profitability margins: **Margin-enhancing factors** include the company's focus on higher-value solutions and services, strong relationships with key vendors that provide favorable pricing and rebates, specialized vertical market expertise that reduces price competition, and the ongoing shift toward complex technologies like AI and cybersecurity that require more consultative selling. **Margin-pressuring factors** include intense competition from other distributors and direct manufacturer sales, customer consolidation leading to increased pricing pressure, commodity-like nature of basic IT products, economic uncertainty causing customers to delay purchases or seek lower-cost alternatives, and the cyclical nature of device refresh cycles that can create demand volatility. The company's customer base spans from small businesses paying list prices to large enterprises and government entities that negotiate volume discounts. Government contracts, while providing steady revenue, typically operate at the lowest margins due to competitive bidding requirements.
Competitive moat
PC Connection operates in a moderately competitive distribution industry with limited sustainable competitive advantages. The company's moat is relatively narrow and primarily based on operational execution rather than structural barriers to entry. The company's competitive positioning relies on several factors: **Relationship-based advantages**: PC Connection has built long-term relationships with both suppliers and customers over its 40+ year history. These relationships provide some customer stickiness and preferential treatment from vendors, but are not insurmountable barriers as relationships can shift over time. **Operational scale and efficiency**: The company's size allows it to negotiate better terms with suppliers and spread fixed costs across a larger revenue base. However, this advantage is limited as several larger competitors like CDW, Insight Enterprises, and Amazon Business operate at significantly greater scale. **Specialized market knowledge**: PC Connection has developed expertise in specific vertical markets and complex technology solutions, particularly in emerging areas like AI infrastructure. This consultative capability provides some differentiation from pure-play commodity resellers. **Geographic and channel diversification**: The company's presence across multiple market segments (SMB, enterprise, public sector) provides some resilience against sector-specific downturns. **Competitive threats** are significant and include direct manufacturer sales (Dell, HP, and others increasingly selling direct to customers), large-scale competitors with greater resources and broader service capabilities, e-commerce giants like Amazon Business that can leverage massive scale and logistics networks, and cloud service providers that are changing how customers consume IT infrastructure. The technology distribution industry is characterized by low barriers to entry, thin margins, and intense price competition. PC Connection's moat is best described as a "narrow operational moat" that requires continuous investment and execution to maintain, rather than a durable structural advantage.
Risks & safety
PC Connection demonstrates a **strong financial safety profile** with conservative capital structure and solid liquidity position. **Overall Assessment**: Low financial risk with strong balance sheet and consistent cash generation. **Liquidity and Solvency**: - Cash and short-term investments: $182.5 million (Q1 2025) - Current ratio: 3.16x indicating strong short-term liquidity - Quick ratio: 2.73x showing ability to meet obligations without inventory liquidation - Debt-to-equity ratio: 0.001x reflecting minimal debt burden - Total debt represents less than 1% of total assets **Cash Flow and Burn Rate**: - Q1 2025 showed negative operating cash flow of -$52.4 million, primarily due to seasonal working capital build - Full year 2024 generated positive $173.9 million in operating cash flow - Free cash flow of $166.3 million for 2024 demonstrates strong cash generation capability - Seasonal cash flow patterns are normal for the distribution business **Valuation Metrics**: - P/E ratio: 30.2x (elevated due to cyclical earnings trough) - EV/EBITDA: 24.9x (also elevated) - Price-to-book: 1.86x - Graham number suggests potential undervaluation at current levels **Other Considerations**: - Strong working capital management with $762.6 million in net current assets - No significant capital expenditure requirements - Consistent dividend payments indicating management confidence - Conservative management approach to capital allocation
Recent development
Over the past few years, PC Connection has undergone significant strategic transformation focused on advanced technology solutions and operational modernization. The company has shifted from a traditional product reseller toward a solutions-oriented technology partner. **Technology and AI Focus**: The company launched its **Connection Helix Center for Applied AI and Robotics** initiative, positioning itself as a leader in AI infrastructure and solutions. Management reports that AI-enabled PCs now represent approximately 25% of device sales, up from 10% earlier in the cycle. The company is investing heavily in AI readiness solutions and helping customers navigate AI implementation challenges. **Operational Infrastructure Investments**: PC Connection has made substantial investments in business systems and processes, including implementing a world-class CRM system, AI-enabled workflow tools, and enhanced technical integration capabilities. These investments, described by management as building-year expenditures, are expected to drive efficiency gains and improved customer experience starting in 2025. **Market Expansion and Vertical Focus**: The company has strengthened its focus on specific vertical markets, showing strong growth in healthcare (+20%), retail (+23%), and financial services (+15%) sectors. The Public Sector Solutions segment has been particularly successful, with Q1 2025 revenue growing 54.7% year-over-year, driven by federal government contract wins. **Service Capabilities Enhancement**: PC Connection has increased investment in technical sales resources and professional services capabilities, moving beyond pure product distribution toward higher-margin solution delivery. The company is focusing on data center modernization, cybersecurity, and infrastructure transformation projects. **Acquisition Strategy**: Management continues to pursue "tuck-in acquisitions" that would expand solution capabilities or provide entry into new markets, though no major acquisitions have been completed recently. The company maintains a strong balance sheet to support potential strategic acquisitions. **Market Positioning for Device Refresh**: The company is strategically positioned for the anticipated device refresh cycle driven by Windows 11 migration and AI-enabled computing requirements, with management expressing confidence in outperforming broader IT market growth by 200 basis points.
CNXN company profile · for informational purposes only — not investment advice.
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