On September 11, 2023, Thomas Baker, the Senior Vice President, Chief Financial Officer, and Treasurer of PC Connection Inc (CNXN, Financial), sold 2,500 shares of the company. This move is part of a series of transactions made by the insider over the past year, during which Baker has sold a total of 10,000 shares and made no purchases.
PC Connection Inc is a Fortune 1000 company specializing in providing a full range of information technology (IT) solutions to business, government, and education markets. The company offers a broad selection of more than 300,000 brand name products, such as laptops, tablets, desktops, servers, storage, and networking products, as well as software, peripherals, and accessories.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider transactions. Over the past year, there have been no insider buys and 26 insider sells for PC Connection Inc. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of PC Connection Inc were trading at $53.58, giving the company a market cap of $1.417 billion. The stock's price-earnings ratio stands at 18.74, lower than the industry median of 22.11 but higher than the company's historical median price-earnings ratio.
According to GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, PC Connection Inc's stock is fairly valued. The stock's price-to-GF-Value ratio is 1.09, with a GF Value of $49.26. This valuation is depicted in the following image:
The insider's sell, coupled with the company's valuation and the absence of insider buys over the past year, may suggest a cautious outlook for the company's stock. However, investors should also consider other factors, such as the company's financial health, market conditions, and industry trends, before making investment decisions.
As always, insider transactions should not be used in isolation to make investment decisions. Instead, they should be used as a tool to better understand the actions of company insiders and how these actions may reflect on the company's future performance.
