PC Connection heads into the back half of July with its founder cashing out steadily into the strongest month the stock has seen in years.
The standout this week is the insider activity. Founder and Chairman Patricia Gallup has been a consistent seller through July, offloading shares on July 6, 7, 22, and 23 at prices ranging from $72 to $81. The combined haul across those trades runs to roughly $2.2 million — part of a 90-day net sell figure of approximately $4.2 million. Gallup controls over 54% of the company, so these are small trimming moves relative to her total stake. But the pattern is hard to ignore: she is selling into every leg of a rally that has lifted CNXN 16% in a month to $83.10.
The lending market offers no competing narrative here. Borrow availability is extraordinarily loose — roughly 6,600% of short interest, meaning the lending pool holds far more shares than are currently borrowed. Cost to borrow has halved over the past month, falling to around 0.54%, its lowest level since spring. Short interest itself is a modest 1.75% of the free float, and while it edged up about 9.5% over the week, that move takes it from roughly 400,000 shares to 440,000 — not a number that moves the needle on a stock this liquid. The borrow market is telling you there is essentially no short-side conviction here.
Options positioning is similarly calm. The put/call ratio has drifted up to 0.14, marginally above its 20-day average of 0.12, with a z-score of just 0.69. That is well within normal range and nowhere near the 52-week high of 5.5 that marked genuine defensive hedging. Call flow continues to dominate by a wide margin, consistent with the price action but not extreme enough to flag as a contrarian signal.
Peer context reinforces the bullish tape. CDW and NSIT — the two closest correlated US-listed peers — both gained strongly on the week, up 11% and 7.5% respectively. PLUS added nearly 4%. CNXN's 2.3% weekly gain trails that peer group, which is notable given the stock's stronger one-month performance. The IT distribution sector appears broadly bid right now, and CNXN is participating, if not leading.
Analyst coverage is stale — the most recent ORTEX data here dates to mid-2024 and reflects a mean price target of $76, which now sits below the current share price of $83. That figure should not be treated as current Street consensus. The valuation data similarly carries dates from 2020-2021 and is not usable as a fresh read on multiples.
Earnings just landed — the history shows a Q2 print announced July 15 and released on July 29. The most recent prior quarter, reported in May, produced a one-day move of just 0.8% and a five-day drift of 1.5%, suggesting the market has generally been comfortable with results. With the stock now sitting at a fresh high and the founder trimming, how management frames IT spending trends and margin outlook in the post-earnings call becomes the next thing to watch.
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