Form 4: PC Connection CEO Exercises RSUs, Sells Shares
Insider Transaction Report
PC Connection's President & CEO, Timothy J. McGrath, reported the exercise of restricted stock units and a subsequent sale of shares for tax purposes.
Summary
- Timothy J. McGrath, President & CEO of PC Connection Inc. (CNXN), reported transactions on October 29, 2025.
- McGrath acquired 5,000 shares of Common Stock through the conversion of Restricted Stock Units (RSUs) at a price of $0.00 per share.
- Concurrently, 1,968 shares of Common Stock were disposed of at a price of $60.88 per share to cover tax withholding obligations.
- Following these transactions, McGrath beneficially owns 261,586 shares of Common Stock.
- The acquired RSUs were granted under the PC Connection, Inc. Amended and Restated 2007 Stock Incentive Plan on October 29, 2019.
- An additional 5,000 Restricted Stock Units remain, scheduled to vest on October 29, 2026, with an expiration date of October 29, 2031.
Sentiment
Score: 6
Explanation: The sentiment is slightly positive as it reflects the successful vesting of executive compensation, a routine and expected event. The sale of shares is for tax purposes, which is also standard practice and not indicative of a negative outlook.
Positives
- The vesting of 5,000 Restricted Stock Units indicates the successful execution of a long-term incentive compensation plan for the CEO.
- The transaction was made pursuant to a Rule 10b5-1 plan, suggesting a pre-planned and orderly execution of executive compensation.
Negatives
- A disposition of 1,968 shares, even for tax purposes, represents a reduction in the CEO's direct beneficial ownership of the company's common stock.
Future Outlook
An additional 5,000 Restricted Stock Units are scheduled to vest on October 29, 2026, indicating a future equity award realization for the CEO.
Industry Context
This transaction is a routine insider filing common across publicly traded companies, reflecting the standard practice of executive compensation through equity awards and subsequent tax-related share dispositions.
Stakeholder Impact
- Shareholders: The transaction is a routine insider filing and is unlikely to have a significant direct impact on the company's share price or long-term value. It reflects the ongoing compensation structure for the CEO.
- Employees: No direct impact mentioned.
Next Steps
- The remaining 5,000 Restricted Stock Units are scheduled to vest on October 29, 2026.
Key Dates
| Date | Description |
|---|---|
| 10/29/2019 | Date Restricted Stock Units were granted under the PC Connection, Inc. Amended and Restated 2007 Stock Incentive Plan. |
| 10/29/2025 | Date of transaction for RSU vesting and subsequent share disposition for tax withholding. |
| 10/30/2025 | Date the Form 4 was signed by Timothy J. McGrath. |
| 10/29/2026 | Scheduled vesting date for remaining 5,000 Restricted Stock Units. |
| 10/29/2031 | Expiration date for the Restricted Stock Units. |
Keywords
PC Connection, CNXN, Timothy J. McGrath, Insider Trading, Form 4, Restricted Stock Units, RSU Vesting, Executive Compensation, Stock Sale, Tax Withholding
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