ScanSource (NASDAQ:SCSC) Cut to Hold at Zacks Research

Zacks Research downgraded shares of ScanSource (NASDAQ:SCSC) from a strong-buy rating to a hold rating in a research note released on Tuesday,Zacks.com reports.

Several other research firms also recently issued reports on SCSC. Barclays started coverage on shares of ScanSource in a research note on Tuesday, October 7th. They set an “equal weight” rating and a $43.00 price objective for the company. Wall Street Zen cut shares of ScanSource from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 11th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of ScanSource in a research report on Wednesday, October 8th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $42.50.

ScanSource Price Performance

SCSC opened at $42.88 on Tuesday. The company has a quick ratio of 1.30, a current ratio of 2.01 and a debt-to-equity ratio of 0.14. ScanSource has a 52-week low of $28.75 and a 52-week high of $53.90. The company has a 50 day moving average of $43.38 and a two-hundred day moving average of $40.41. The company has a market cap of $938.64 million, a P/E ratio of 14.25, a P/E/G ratio of 0.71 and a beta of 1.36.

ScanSource (NASDAQ:SCSC) last released its quarterly earnings data on Thursday, August 21st. The industrial products company reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.91 by $0.11. ScanSource had a net margin of 2.35% and a return on equity of 9.38%. The company had revenue of $812.89 million during the quarter, compared to the consensus estimate of $776.21 million. During the same period in the previous year, the firm earned $0.80 earnings per share. ScanSource’s revenue for the quarter was up 8.9% on a year-over-year basis. ScanSource has set its FY 2026 guidance at EPS. On average, analysts expect that ScanSource will post 3.33 earnings per share for the current year.

Insider Buying and Selling at ScanSource

In related news, CEO Michael L. Baur sold 47,969 shares of the company’s stock in a transaction on Thursday, September 18th. The shares were sold at an average price of $44.34, for a total value of $2,126,945.46. Following the sale, the chief executive officer directly owned 202,512 shares of the company’s stock, valued at $8,979,382.08. This represents a 19.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Rachel Hayden sold 752 shares of the company’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $43.57, for a total transaction of $32,764.64. Following the completion of the sale, the executive vice president directly owned 14,918 shares in the company, valued at $649,977.26. This represents a 4.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 153,677 shares of company stock worth $6,876,030 over the last ninety days. 4.20% of the stock is currently owned by corporate insiders.

Institutional Trading of ScanSource

Several institutional investors have recently added to or reduced their stakes in the business. Pzena Investment Management LLC increased its stake in ScanSource by 3.6% during the second quarter. Pzena Investment Management LLC now owns 975,578 shares of the industrial products company’s stock valued at $40,789,000 after purchasing an additional 33,510 shares during the last quarter. American Century Companies Inc. increased its stake in ScanSource by 4.4% during the second quarter. American Century Companies Inc. now owns 854,624 shares of the industrial products company’s stock valued at $35,732,000 after purchasing an additional 36,161 shares during the last quarter. Wasatch Advisors LP increased its stake in ScanSource by 0.6% during the second quarter. Wasatch Advisors LP now owns 844,949 shares of the industrial products company’s stock valued at $35,327,000 after purchasing an additional 4,798 shares during the last quarter. Jones Financial Companies Lllp bought a new stake in ScanSource during the first quarter valued at $22,848,000. Finally, LSV Asset Management increased its stake in ScanSource by 7.1% during the second quarter. LSV Asset Management now owns 538,660 shares of the industrial products company’s stock valued at $22,521,000 after purchasing an additional 35,475 shares during the last quarter. Institutional investors own 97.91% of the company’s stock.

ScanSource Company Profile

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.