Pc Connection Intrinsic Value – Versor Investments LP Acquires Stake in PC Connection, During Third Quarter

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PC ($NASDAQ:CNXN) Connection, Inc. is a leading provider of information technology solutions and services to small, medium, and large businesses. The company offers a wide range of products from well-known technology brands such as Microsoft, HP, and Dell, as well as their own brand of custom-configured computer systems. PC Connection also provides consulting, design, installation, and implementation services to help businesses optimize their IT infrastructure. In the third quarter of this year, investment firm Versor Investments LP made a significant move by acquiring a stake in PC Connection. This filing allows the public to track the changes in ownership of various stocks and provides insights into the investment strategies of large firms like Versor Investments LP. This acquisition marks an important development for both PC Connection and Versor Investments LP. For PC Connection, having a prominent investor like Versor Investments LP can bring in additional resources and expertise that can help drive growth and expansion. On the other hand, Versor Investments LP’s decision to acquire a stake in PC Connection shows their confidence in the company’s financial performance and potential for future growth.

Their focus on long-term growth and value creation aligns with PC Connection’s goals and values. This partnership can potentially lead to new opportunities for PC Connection to expand its product and service offerings and enter new markets. Moreover, this acquisition also highlights the strong performance of PC Connection in the third quarter. This positive performance reflects PC Connection’s ability to adapt and thrive in the ever-changing technology landscape. It not only provides PC Connection with new resources and opportunities for growth, but also showcases the company’s strong performance and potential for future success.

Share Price

The news sent ripples through the stock market as PC CONNECTION stock opened at $73.06 and closed at $71.79, marking a 0.83% decrease from its previous closing price of $72.39. With a strong track record of successful investments, Versor Investments LP brings a wealth of experience and resources to the table. This partnership could potentially bring about growth and expansion opportunities for PC Connection. Despite the slight decrease in stock price on Wednesday, this move is seen as a positive development for both PC Connection and its investors. According to industry experts, this strategic partnership could lead to enhanced capabilities and resources for PC Connection.

This, in turn, could help the company better cater to the evolving needs of its customers and stay ahead of the competition in the highly competitive technology market. This acquisition also comes at a time when PC Connection has been showcasing strong financial performance. This shows that PC Connection is well-positioned for growth and could potentially benefit from the expertise and resources brought in by Versor Investments LP. It reflects the confidence and potential for growth in PC Connection and could lead to exciting opportunities for the company and its investors in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Pc Connection. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Pc Connection. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Pc Connection. More…

Key Ratios Snapshot

Some of the financial key ratios for Pc Connection are shown below. More…

Analysis – Pc Connection Intrinsic Value

As an analyst at GoodWhale, I have conducted a thorough analysis of PC CONNECTION‘s financials. Our team has carefully examined the company’s income statements, balance sheets, and cash flow statements to determine its current financial health and future prospects. Based on our calculations, we have determined that the intrinsic value of PC CONNECTION’s share is approximately $84.0. This value is derived from our proprietary Valuation Line, which takes into account various financial metrics such as earnings, revenue, and growth projections. Despite this fair value, PC CONNECTION’s stock is currently trading at $71.79. This indicates that the stock is undervalued by approximately 14.5%, making it a potential opportunity for investors. In terms of financial performance, PC CONNECTION has shown steady revenue growth over the past few years. Their profitability has also improved, with a healthy return on equity and increasing net income. The company’s balance sheet also appears strong, with a manageable level of debt and a solid current ratio. However, there are some potential risks to consider. PC CONNECTION operates in a highly competitive industry, with increasing pressure from e-commerce giants like Amazon. Additionally, the company’s heavy reliance on technology sales could make it vulnerable to market fluctuations and disruptors in the industry. In conclusion, PC CONNECTION appears to be a solid company with strong financials and growth potential. At its current undervalued price, it may be a good investment opportunity for those looking to add technology stocks to their portfolio. However, it’s important to carefully consider the potential risks before making any investment decisions. More…

Peers

PC Connection Inc, Comtech Telecommunications Corp, Chengdu Zhimingda Electronics Co Ltd, and Argo Graphics Inc are all companies that provide computer and networking products and services.

– Comtech Telecommunications Corp ($NASDAQ:CMTL)

Comtech Telecommunications Corp is a communications technology company. The company designs, develops, manufactures and markets products and services for the communications, commercial and government markets. The company’s products and services include wireless communications, satellite communications, and optical communications. Comtech’s market cap is 302.51M as of 2022 and has a Return on Equity of -3.51%. The company designs, develops, manufactures and markets products and services for the communications, commercial and government markets including wireless communications, satellite communications, and optical communications.

– Chengdu Zhimingda Electronics Co Ltd ($SHSE:688636)

Chengdu Zhimingda Electronics Co Ltd is a Chinese electronics company with a market cap of 7.31B as of 2022. The company has a Return on Equity of 5.9%. Chengdu Zhimingda Electronics Co Ltd is engaged in the research and development, production, and sale of LED products. The company’s products include LED light bars, LED downlights, LED spotlights, LED bulbs, and LED tubes.

– Argo Graphics Inc ($TSE:7595)

Argo Graphics Inc is a publicly traded company with a market capitalization of 77.04 billion as of 2022. The company has a return on equity of 11.23%. Argo Graphics is a leading provider of graphic design services. The company offers a full range of graphic design services, including logos, branding, website design, and print design. Argo Graphics has a team of experienced and talented designers who are dedicated to creating high-quality designs that meet the needs of their clients.

Summary

Versor Investments LP added PC Connection, Inc. to its investment portfolio in the third quarter. The purchase indicates a strong interest in the company’s potential for growth and profitability. This move by the investment firm could also signal positive sentiment towards the current financial status and future prospects of PC Connection. As an investor, it may be worthwhile to closely monitor the company’s performance and developments in the coming quarters. This could provide valuable insights into the potential for returns on investment.

Additionally, analyzing the investment strategies of prominent firms such as Versor Investments LP can serve as a useful guide for individual investors.