Inside Move: PC Connection's CEO McGrath Sells Shares Worth $4.3 Million
Key Points
Across two days, McGrath sold 50,000 shares.
The transaction netted him roughly $4.3 million.
His ownership of 240,343 shares shows he still has plenty of skin in the game.
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Timothy J. McGrath, President & CEO of PC Connection(NASDAQ:CNXN), sold 50,000 shares of common stock at $85.88 per share in transactions completed on Aug. 3 and Aug. 4, 2026. SEC Form 4 filing
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (directly held) | 50,000 |
| Transaction value | $4.3 million |
| Post-transaction shares (directly held) | 240,343 |
| Post-transaction value | $20.86 million |
Transaction value based on SEC Form 4 weighted average sale price ($85.88); post-transaction value based on Aug. 04, 2026, market close ($86.79).
Key questions
- How does this transaction impact the executive's total equity exposure?
Following the sale of 50,000 shares, McGrath continues to hold a direct stake of 240,343 shares, which carries a market value of $20.86 million as of the Aug. 4, 2026 market close. - What was the pricing environment for this liquidation?
The shares were sold at a weighted-average price of $85.88, compared with a market close of $86.79 on the final day of the transaction. The stock has demonstrated strong momentum, climbing nearly 40% so far in 2026. - Are there any indirect holdings or entities involved in this filing?
The filing indicates no indirect ownership. All 240,343 shares held after the transaction are held directly by the executive, and no family trusts, LLCs, or other holding entities were disclosed in the ownership context.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-08-04) | $86.79 |
| Market Capitalization | $2.2 billion |
| Revenue (TTM) | $3.0 billion |
| Net Income (TTM) | $95.8 million |
Company Snapshot
- PC Connection distributes a comprehensive portfolio of information technology solutions, including computer systems, peripheral devices, data center infrastructure, software applications, and networking communication equipment to enterprise and public sector clients.
- The company generates revenue through three primary business divisions--Business Solutions, Enterprise Solutions, and Public Sector Solutions--which leverage its distribution capabilities and IT expertise to serve diverse customer segments with integrated technology solutions.
- PC Connection serves mid-market and large enterprise customers, government agencies, and public sector organizations that require scalable IT infrastructure, software licensing, and technology services to support their operational requirements.
PC Connection is as a leading technology distributor with nearly $3 billion in TTM revenue and a market capitalization of more than $2 billion, positioning it as a significant player in the IT distribution sector. The company's diversified business model across commercial, enterprise, and public sector segments provides revenue stability and exposure to multiple end-market verticals.
What this transaction means for investors
PC Connection has had a strong run thus far in 2026, with shares climbing nearly 40% compared to the S&P 500's 13.8% gain over the same period. The company is also just coming off the heels of a strong earnings report for the second quarter of 2026. PC Connection reported that net sales increased 12.4% to $854 million, gross profit increased 14.3% to $157.5 million, and net income increased 33.8% to $33.2 million. Some of its biggest sales drivers were in notebook/mobility and desktop sales, software sales, and network sales. Its servers/storage sales decreased by 18%.
For the first half of 2026, net sales are up 7.9% to $1.6 billion, gross profit is up 8.5% to $290.2 million, and net income has climbed 31.7% to $50.4 million. Demand for artificial intelligence infrastructure solutions is helping drive sales, and that's not expected to slow down any time soon. With McGrath selling his shares, it appears he's taken advantage of the rising stock price rather than there being any issue with the company. He still directly holds 240,343 shares, a sign of continued confidence in PC Connection.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PC Connection. The Motley Fool has a disclosure policy.
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