Insider Sale under Rule 10b5‑1

Patricia Gallup, Chairman, Chief Administrative Officer, Director and 10% owner of PC Connection Inc (NASDAQ:CNXN), acted as sole trustee and beneficiary of the David Hall Trust 2003 to dispose of company stock worth approximately $1,218,444. The transactions occurred on September 14 and 15, 2026 and were executed pursuant to a Rule 10b5‑1 trading plan adopted on March 9, 2026. The trust sold a total of 14,284 shares of PC Connection common stock across multiple transactions at weighted‑average prices ranging from $84.42 to $86.04 per share. At the time of sale, the stock was trading near its 52‑week high of $88.35, with a market price of $87.12. InvestingPro analysis noted the stock appeared overvalued at current levels. The company had delivered a 50% total return over the past six months, contributing to a year‑to‑date gain of 52%.

Post‑sale Ownership Structure

Following the sales, Ms. Gallup, through direct and indirect holdings in various trusts, beneficially owns a total of 13,658,487 PC Connection shares. The David Hall Trust 2003 alone holds 6,927,759 shares indirectly. Other significant indirect holdings include shares held by the North Branch Trust, Comack Trust‑B, Abbott Brook Trust‑B, and Abbott Brook Trust II, for which Ms. Gallup also serves as sole trustee.

Q2 2026 Financial Performance

In the same period, PC Connection reported record‑breaking second‑quarter 2026 results. Diluted earnings per share were $1.31, surpassing analyst estimates of $1.04 by 26%. Net sales increased 12.4% year‑over‑year to $854 million. Gross billings rose 14% to $1.2 billion, reflecting strong demand for the company’s products and services. Operating income climbed 39.2% to a record $43 million, while gross profit reached a new high of $157.5 million, driven by improved margins and operational efficiency. Management highlighted that enterprise customers are moving from AI testing phases to broader deployment, which is expected to support further infrastructure and services spending. The company cautioned that third‑quarter revenue may be slightly lower than the second quarter on a sequential basis, but year‑over‑year growth is expected to remain in the high single‑digit range.

Additional Notes

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