Channel Stocks Winners And Losers Of 2022 (So Far)

It’s been a rough six months for stock markets and channel company stocks have not been immune from the big sell-off. Here’s a look at the (few) companies whose share prices increased in the first half of 2022 and the 10 companies with the biggest share price declines.

Channel Stocks Tumble As Stock Markets Plummet

For stock markets, the first six months of 2022 was the worst first half of a year since 1970. The major stock indices have been on a downward trajectory since the start of the year driven by economic uncertainty, inflation, ongoing supply chain issues and other forces.

Between the start of the trading year on Jan. 3 and the close of trading on June 30, the Dow Jones fell 15.27 percent to close at 30,775.43, while the tech-heavy NASDAQ plunged 29.90 percent to close at 11,028.74.

Of the 21 channel company stocks on the CRN watch list, only four recorded price gains in the first half of 2022. The remaining 17 saw the value of their shares fall – most by double-digit percentages and one losing more than 50 percent of its total value.

In many – if not most – cases channel companies saw the value of their shares fall despite reporting strong operating results in 2022.

Major solution providers whose stock prices have taken big hits in 2022 include Accenture (down 33 percent), CDW (down 23 percent), Cognizant (down 24 percent) and Unisys (down 42 percent).

Here‘s a look at the biggest stock price winners and losers so far in 2022. We start with the four publicly held channel companies that recorded share price gains in the first six months of the year. Then we list the 10 publicly held channel companies whose stock prices declined the most, concluding with the channel company with the biggest loss.

The rankings are based on the opening share prices on Jan. 3, 2022, and the stock closing prices on June 30, 2022.

Stock Price Gainers

Gainers No. 4: Connection

CEO: Timothy McGrath

Jan. 3, 2022, Opening: $43.50

June 30, 2022, Close: $44.05

Change: +1.26%

For the first quarter (ended March 31) of 2022, Connection reported net sales of $788.3 million, up nearly 24 percent from $636.9 million in the first quarter of 2021. Net income for this year’s first quarter was $21.8 million, more than double the $10.2 million in the same period one year earlier.

Connection is scheduled to report its second quarter results on Aug. 4.

Gainers No. 3: Softchoice

CEO: Vince De Palma

Jan. 3, 2022, Opening: $22.00

June 30, 2022, Close: $22.51

Change: +2.32%

For the first quarter (ended March 31) of 2022 Softchoice reported net sales of $222.9 million, down 4.4 percent from $233.2 million in the first quarter of 2021. The company reported net income of $3.7 million for the quarter compared to a $2 million loss one year before.

Softchoice will report results for its second quarter on Aug. 12.

Gainers No. 2: Avnet

CEO: Phil Gallagher

Jan. 3, 2022, Opening: $41.42

June 30, 2022, Close: $42.88

Change: +3.52%

On July 11, distributor Avnet announced that CFO Thomas Liguori would be leaving the company to pursue “opportunities in the public, private and university sectors.” Corporate controller Kenneth Jacobson will become CFO effective Sept. 6.

For the first nine months (ended April 2) of its fiscal 2022 Avnet reported sales of $17.94 billion, up 25 percent from $14.31 billion in the first nine months of fiscal 2021. Net income for the nine-month period was $445.6 million, a more than four-fold increase year over year from $107.8 million.

Avnet will report financial results for its fourth quarter and all of fiscal 2022 on Aug. 10.

Gainers No. 1: CACI International

CEO: John Mengucci

Jan. 3, 2022, Opening: $270.19

June 30, 2022, Close: $281.78

Change: +4.29%

CACI had the largest stock price gain in the first half of 2022 among all the publicly held channel companies on our watch list.

The company is a leading provider of IT solutions and services to the federal government, the military and intelligence agencies. In May CACI was awarded a $138 million contract to provide engineering and maintenance support for immigration and customs enforcement.

For the first nine months (ended March 31) of its fiscal 2022, CACI reported revenue of $4.56 billion, up 1.8 percent from $4.48 billion in the first nine months of fiscal 2021. Net income for the nine-month period was $273.8 million, down 14.6 percent from $320.5 million one year before

CACI is scheduled to report financial results for the fourth quarter and all of fiscal 2022 on Aug. 10.

Stock Price Decliners

Decliners No. 1: Insight Enterprises

CEO: Joyce Mullen

Jan. 3, 2022, Opening: $106.63

June 30, 2022, Close: $86.28

Change: -19.08%

Insight Enterprises began 2022 with former Dell Technologies channel executive Joyce Mullen taking the reins as president and CEO. She replaced Ken Lamneck, Insight’s CEO since 2010, who retired at the end of 2021.

Insight recently opened a new global headquarters in Chandler, Ariz.

For the first quarter (ended March 31) of 2022 Insight reported revenue of $2.65 billion, up 21 percent from $2.19 billion in the first quarter of 2021. Net income for the quarter was $56.6 million, up 31 percent from $43.2 million one year earlier.

Decliners No. 2: Conduent

CEO: Cliff Skelton

Jan. 3, 2022, Opening: $5.34

June 30, 2022, Close: $4.32

Change: -19.10%

For the first quarter of 2022, Conduent reported revenue of $967 million, down nearly 6 percent from $1.03 billion in the first quarter of 2021. The company reported net income of $136 million compared to an $11 million net loss one year before.

Conduent will report financial results from its second quarter on Aug. 2.

Decliners No. 3: TD Synnex

CEO: Rich Hume

Jan. 3, 2022, Opening: $115.03

June 30, 2022, Close: $91.10

Change: -20.80%

TD Synnex entered 2022 as the IT industry’s biggest distributor, having completed the blockbuster merger of Tech Data and Synnex in September 2021.

For the first six months (ended May 31) of its fiscal 2022 TD Synnex reported revenue of $30.74 billion and net income of $281.2 million.

Decliners No. 4: CDW

CEO: Christine Leahy

Jan. 3, 2022, Opening: $205.34

June 30, 2022, Close: $157.56

Change: -23.27%

CDW entered 2022 having just completed its $2.5 billion acquisition of Sirius Computer Solutions in December 2021.

For the first quarter (ended March 31) of 2022 CDW reported revenue of $5.95 billion, up 23 percent from $4.84 billion in the first quarter of 2021. Net income for the quarter was $250.2 million, up 7.6 percent from $232.6 million one year earlier.

CDW will announce its second quarter financial results on Aug. 3.

Decliners No. 5: Cognizant

CEO: Brian Humphries

Jan. 3, 2022, Opening: $88.68

June 30, 2022, Close: $67.49

Change: -23.89%

On June 28 Cognizant Technology Solutions fired Gregory Hyttenrauch, the company’s executive vice president and president of its Americas business, for “behavior inconsistent with company policy,” according to a filing with the U.S. Securities and Exchange Commission

For the first six months of 2022 (ended June 30) Cognizant reported revenue of $9.73 billion, up 8.3 percent from just under $9 billion in the first half of 2021. The company reported $1.14 billion in net income for the first half of this year, up 12 percent from 1.02 billion one year before.

Decliners No. 6: Perficient

CEO: Jeff Davis

Jan. 3, 2022, Opening: $130.65

June 30, 2022, Close: $91.69

Change: -29.82%

For its first quarter (ended March 31) of 2022, Perficient reported revenue of $222.1 million, up 31 percent from $169.3 million in the first quarter of 2021. Net income nearly doubled to $27.1 million in the quarter from $13.6 million one year earlier.

Perficient will announce the results of its 2022 second quarter on August 4.

Decliners No. 7: Accenture

CEO: Julie Sweet

Jan. 3, 2022, Opening: $414.66

June 30, 2022, Close: $277.65

Change: -33.04%

Accenture has been on an acquisition spree in recent years, including buying dozens of companies in 2021. The company’s pace of acquisitions has slowed somewhat in 2022, but the giant systems integrator and service provider has continued to buy companies to grow its geographical reach and expand its range of business and technical expertise.

Accenture’s acquisitions this year include Advocate Networks, Alfa Consulting, Avieco, Ergo and Greenfish.

For its fiscal 2022 third quarter (ended May 31) Accenture reported revenue of $16.16 billion, up nearly 22 percent from $13.26 billion in the third quarter of fiscal 2021. Net income for the just-completed quarter was $1.82 billion, up nearly 16 percent from $1.57 billion one year earlier.

Decliners No. 8: Tyler Technologies

CEO: Lynn Moore Jr.

Jan. 3, 2022, Opening: $536.41

June 30, 2022, Close: $332.48

Change: -38.02%

In May, Tyler Technologies, a leading IT services and solution provider in the public sector, acquired Quatred, a systems integrator and solution provider that assists clients with implementing advanced touchless technologies, including barcoding systems.

For the first six months (ended June 30) of 2022 Tyler reported revenue of $924.8 million, up 32.3 percent from $698.9 million in the first half of 2021. Net income for the first six months of 2022 was $79.9 million, up nearly 28 percent from $62.5 million one year before.

Decliners No. 9: Unisys

CEO: Peter Altabef

Jan. 3, 2022, Opening: $20.59

June 30, 2022, Close: $12.03

Change: -41.57%

In April, Unisys named Debra McCann as executive vice president and CFO, effective May 2. She joined Unisys from Dun & Bradstreet where she was treasurer and senior vice president of investor relations and corporate FP&A.

Unisys also said that with McCann’s appointment, Mike Thomson becomes Unisys president and COO, reporting to CEO Peter Altabef. The company had announced in November 2021 that Thomson, then serving as CFO, would move up to the president and COO positions once a replacement CFO was hired.

Unisys reported revenue of $446.7 million for the first quarter (ended March 31) of 2022, down 12.4 percent from $509.8 million in the first quarter of 2021. The company reported a net loss of $57.3 million for the quarter compared to a $157.8 million net loss one year earlier.

Unisys will announce its second quarter results on Aug. 3.

Decliners No. 10: EPAM Systems

CEO: Arkadiy Dobkin

Jan. 3, 2022, Opening: $670.32

June 30, 2022, Close: $294.78

Change: -56.02%

EPAM, a provider of digital transformation and advanced software engineering services, has been reporting robust revenue growth in recent years. But in a sign of how pervasive the decline in stock prices has been, the Newtown, Pa.-based company recorded the biggest share price drop among all the channel companies on our watch list.

EPAM reported revenue of $1.17 billion for the first quarter (ended March 31) of 2022, up 50.1 percent from $780.8 million in the first quarter of 2021.

Net income for the quarter was $89.7 million, down 17.7 percent from $109.0 million year over year.

In June EPAM was elevated to Platinum status within the Adobe Solution Partner Program.