# PC Connection, Inc. (CNXN)

> Source: Nexqual · https://nexqual.com/CNXN · data as of 2026-10-29 16:25 UTC · cite as "Nexqual, PC Connection, Inc. (CNXN), nexqual.com/CNXN" · informational, not investment advice.

**Price:** USD 87.4 (+1.04% today) · US market open, as of October 29, 2026 at 16:25 UTC; quotes may be delayed. Prev close 86.5 · day 86.19–91.09 · 52w 54.97–96.91 · market cap $2.21B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $2.99B, net income $95.8M (3.2% margin), free cash flow $34.1M (SEC filings).
- Valuation: P/E 23.0x (avg 20.0x at the last 3 fiscal year-ends).
- Insider open-market sales, last ~7 months: 14 Form 4 filings, $18.0M; 4 not under a Rule 10b5-1 plan ($6.5M); 1 by opportunistic insiders (1 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 3.00 on a 1–5 scale) (1 analysts), mean target USD 83 (range 83–83).
- Total return with dividends: 1Y +45.2% vs S&P 500 +13.1%; 5Y +100.9% vs S&P 500 +79.1%.
- Next earnings: 2026-10-28, EPS estimate USD 1.04, revenue estimate $774M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $2.89B | $3.12B | $2.85B | $2.80B | $2.87B | $2.99B |
| Gross profit | $465M | $526M | $512M | $520M | $539M | — |
| Operating income | $96.5M | $121M | $103M | $97.1M | $99.3M | $117M |
| Net income | $69.9M | $89.2M | $83.3M | $87.1M | $83.7M | $95.8M |
| EPS (diluted) | $2.65 | $3.37 | $3.15 | $3.29 | $3.27 | — |
| Free cash flow | — | — | $188M | $166M | $58.0M | $34.1M |
| Gross margin | 16.1% | 16.8% | 18.0% | 18.6% | 18.8% | — |
| Operating margin | 3.3% | 3.9% | 3.6% | 3.5% | 3.5% | 3.9% |
| Net margin | 2.4% | 2.9% | 2.9% | 3.1% | 2.9% | 3.2% |
| Revenue growth | +11.7% | +8.0% | -8.8% | -1.7% | +2.5% | — |
| Cash + short-term investments | $108M | $123M | $297M | $443M | $407M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 23.0x · P/S 0.7x · P/FCF 64.8x · P/B 2.3x · FCF yield 1.54% · Earnings yield 4.34% · Dividend yield (paid, TTM) 0.80% · Buyback yield (TTM) 0.83%
P/E at fiscal year-ends: Dec 2025 17.7x, Dec 2024 21.1x, Dec 2023 21.3x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
10 of 14 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-20…2026-10-21 | Gallup Patricia | Chairman & Chief Admin Officer | 15,196 | $1.3M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-10-05…2026-10-06 | Gallup Patricia | Chairman & Chief Admin Officer | 13,372 | $1.2M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-09-14…2026-09-15 | Gallup Patricia | Chairman & Chief Admin Officer | 14,284 | $1.2M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-09-01…2026-09-02 | Gallup Patricia | Chairman & Chief Admin Officer | 14,284 | $1.1M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-08-17…2026-08-18 | Gallup Patricia | Chairman & Chief Admin Officer | 14,284 | $1.1M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-08-14 | Beffa Negrini David | Director | 5,000 | $405K | 7.6% | No | Too little history (no open-market trades in 2025) |
| 2026-08-04…2026-08-05 | Gallup Patricia | Chairman & Chief Admin Officer | 14,284 | $1.2M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-08-03…2026-08-04 | McGrath Timothy J | President & CEO | 50,000 | $4.3M | 17.2% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-07-31 | Baker Thomas C | Sr. VP, CFO & Treasurer | 20,000 | $1.7M | 35.7% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-07-31 | Duckett Barbara | Director | 2,000 | $168K | 11% | No | Too little history (no open-market trades in 2025) |
| 2026-07-22…2026-07-23 | Gallup Patricia | Chairman & Chief Admin Officer | 14,284 | $1.1M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-07-06…2026-07-07 | Gallup Patricia | Chairman & Chief Admin Officer | 14,284 | $1.0M | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-06-23…2026-06-24 | Gallup Patricia | Chairman & Chief Admin Officer | 14,284 | $998K | 0.2% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
| 2026-06-08…2026-06-09 | Gallup Patricia | Chairman & Chief Admin Officer | 14,308 | $1.0M | 0.1% | Yes (adopted March 9, 2026) | Too little history (no open-market trades in 2024 or 2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 3.00 on a 1–5 scale), 1 analysts; mean target USD 83 (low 83, high 83).

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-29) | 5Y (from 2021-10-25) |
|---|---|---|
| Total return | +45.2% | +100.9% |
| S&P 500 (SPY) | +13.1% | +79.1% |
| Per year | +45.2% | +14.9% |
| Volatility (annualized) | 25.8% | 28.9% |
| Max drawdown | -16.9% (Feb 2026→Mar 2026) | -30.0% (Nov 2022→May 2023) |

## Peers (Electronics & Computer Distribution)
SCSC (ScanSource, Inc.) USD 59.42 -0.03% · NSIT (Insight Enterprises, Inc.) USD 177.71 -0.07% · CLMB (Climb Global Solutions, Inc.) USD 41.58 +25.51% · AVT (Avnet, Inc.) USD 93.2 -0.40% · ARW (Arrow Electronics, Inc.) USD 223.33 +0.17% · SNX (TD SYNNEX Corporation) USD 258.36 +0.63%

## More
Full page: https://nexqual.com/CNXN · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in CNXN's own 10-K filed 2026-02-24 (https://www.sec.gov/Archives/edgar/data/1050377/000110465926019108/cnxn-20251231x10k.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Supplier | Microsoft (MSFT) | "Products manufactured by Microsoft Corporation, HP Inc., and Dell Inc. represented approximately 16%, 13%, and 12%, respectively, of our total product purchases in 2025." |
| Supplier | Dell Technologies (DELL) | "Products manufactured by Microsoft Corporation, HP Inc., and Dell Inc. represented approximately 16%, 13%, and 12%, respectively, of our total product purchases in 2025." |
| Supplier | HP Inc. (HPQ) | "Products manufactured by Microsoft Corporation, HP Inc., and Dell Inc. represented approximately 16%, 13%, and 12%, respectively, of our total product purchases in 2025." |
| Supplier | TD SYNNEX CORP (SNX) | "Although we purchase from a diverse vendor base, product purchases from TD Synnex Corporation, Ingram Micro, Inc., and Microsoft Corporation accounted for approximately 25%, 21%, and 13%, respectively, of our total produ…" |
| Supplier | Ingram Micro Holding Corp (INGM) | "Although we purchase from a diverse vendor base, product purchases from TD Synnex Corporation, Ingram Micro, Inc., and Microsoft Corporation accounted for approximately 25%, 21%, and 13%, respectively, of our total produ…" |
| Customer | UPS (UPS) | "Many of our customers elect to have their purchases shipped by an interstate common carrier, such as United Parcel Service, Inc., or UPS, or FedEx Corporation." |
| Customer | FedEx (FDX) | "Many of our customers elect to have their purchases shipped by an interstate common carrier, such as United Parcel Service, Inc., or UPS, or FedEx Corporation." |
| Competitor | Apple (AAPL) | "We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., HP Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMwa…" |
| Competitor | Cisco (CSCO) | "We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., HP Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMwa…" |
| Competitor | Intel (INTC) | "We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., HP Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMwa…" |
| Competitor | Lenovo | "We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., HP Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMwa…" |
| Competitor | Broadcom (AVGO) | "We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., HP Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMwa…" |
| Competitor | Amazon (AMZN) | "We also compete with computer retail stores and websites, who are increasingly selling to business customers and may become a significant competitor, including e-tailers, such as Amazon, with more extensive commercial on…" |
| Competitor | Palantir (PLTR) | "As we continue to expand and mature our AI services, we compete with other companies that develop and deliver on bespoke AI projects, such as Palantir and Scale.ai." |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.04 | $1.05 | -1.0% | $773.7M | 2 |
| Next quarter (ends 2026-12-31) | $1.05 | $1.07 | -1.4% | $762.2M | 2 |
| Current fiscal year (ends 2026-12-31) | $4.17 | $3.92 | +6.4% | $3.11B | 2 |
| Next fiscal year (ends 2027-12-31) | $4.46 | $4.24 | +5.4% | $3.19B | 2 |

## Options: expected move (Cboe, 15-min delayed)

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 22 | 42.6% | ±10.2% |
| 2027-01-15 | 78 | 41.0% | ±14.3% |

## Earnings history and stock reaction
| Results filed | Quarter | EPS | Consensus | Surprise | Stock reaction |
|---|---|---|---|---|---|
| Oct 28, 2026 | — | — | — | — | -1.3% |
| Jul 29, 2026 | Quarter ended Jun 30, 2026 | $1.31 | $1.04 | Beat +26.0% | -0.7% |
| Apr 29, 2026 | Quarter ended Mar 31, 2026 | $0.77 | $0.62 | Beat +24.2% | +0.2% |
| Feb 4, 2026 | Quarter ended Dec 31, 2025 | $0.91 | $0.86 | Beat +5.8% | +11.7% |
| Oct 29, 2025 | Quarter ended Sep 30, 2025 | $0.97 | $1.00 | Miss −3.0% | -4.0% |
| Jul 30, 2025 | — | — | — | — | -4.1% |
| Apr 30, 2025 | — | — | — | — | +6.2% |
| Feb 5, 2025 | — | — | — | — | -12.1% |
EPS as reported against the analyst consensus before the release; surprise uses the cent-rounded figures shown (in dollars when EPS and consensus have opposite signs). Stock reaction = close before the results to close after (the first close following a release after the bell or before the open).

## Recent SEC filings (last 120 days)
| Filed | Form | What it says | Filing |
|---|---|---|---|
| 2026-10-28 | 10-Q | Quarterly report · period ended Sep 30, 2026 | https://www.sec.gov/Archives/edgar/data/1050377/000110465926119623/0001104659-26-119623-index.htm |
| 2026-10-28 | 8-K | Quarterly results; Regulation FD disclosure | https://www.sec.gov/Archives/edgar/data/1050377/000110465926119620/0001104659-26-119620-index.htm |
| 2026-10-14 | 8-K | Director or executive officer change, or pay arrangement — “On October 14, 2026, PC Connection, Inc. (the "Company") announced that Matthew Zafirovski joined the Company as President and Chief Operating Officer effective October 12, 2026. Prior to joining the Company, Mr. Zafirovski, 41, served as Chief Executive Officer of Tusker, a full-service technology solutions provider, from 2022 to 2026, after previously serving as Chief Operating Officer of Tusker from 2020 to 2022. Mr. Zafirovski has also held leadership roles with Groupon, Apple, McKinsey & Company and Meadowood…” | https://www.sec.gov/Archives/edgar/data/1050377/000110465926115770/0001104659-26-115770-index.htm |
| 2026-07-29 | 10-Q | Quarterly report · period ended Jun 30, 2026 | https://www.sec.gov/Archives/edgar/data/1050377/000110465926088136/0001104659-26-088136-index.htm |
| 2026-07-29 | 8-K | Quarterly results; Regulation FD disclosure | https://www.sec.gov/Archives/edgar/data/1050377/000110465926088129/0001104659-26-088129-index.htm |
Source: SEC EDGAR. Quotes are the opening words of each item as filed.