ScanSource (NASDAQ:SCSC) Downgraded by Wall Street Zen to “Buy”

Wall Street Zen cut shares of ScanSource (NASDAQ:SCSC) from a strong-buy rating to a buy rating in a research report sent to investors on Saturday morning,Wall Street Zen reports.

SCSC has been the subject of a number of other reports. Northcoast Research downgraded ScanSource from a “buy” rating to a “neutral” rating in a research note on Monday, August 17th. Zacks Research downgraded ScanSource from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 20th. Barclays upped their price objective on ScanSource from $43.00 to $51.00 and gave the stock an “equal weight” rating in a report on Monday, October 12th. Finally, Weiss Ratings raised ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. One equities research 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 stock currently has a consensus rating of “Hold” and an average price target of $51.00.

ScanSource Trading Down 5.1%

Shares of ScanSource stock opened at $42.78 on Friday. ScanSource has a 52-week low of $33.76 and a 52-week high of $66.78. The company has a quick ratio of 1.15, a current ratio of 1.75 and a debt-to-equity ratio of 0.36. The company’s 50-day simple moving average is $58.21 and its 200-day simple moving average is $48.11. The firm has a market cap of $871.43 million, a price-to-earnings ratio of 13.41, a price-to-earnings-growth ratio of 0.58 and a beta of 1.28.

ScanSource (NASDAQ:SCSC) last announced its quarterly earnings data on Thursday, November 5th. The industrial products company reported $0.86 EPS for the quarter, missing analysts’ consensus estimates of $1.12 by ($0.26). ScanSource had a net margin of 1.96% and a return on equity of 9.44%. The firm had revenue of $962.29 million during the quarter, compared to analyst estimates of $860.35 million. During the same quarter in the previous year, the business earned $1.06 EPS. ScanSource’s revenue for the quarter was up 30.1% on a year-over-year basis. As a group, equities research analysts anticipate that ScanSource will post 4.71 earnings per share for the current year.

Insider Activity at ScanSource

In related news, Director Charles Mathis sold 3,000 shares of the business’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $58.00, for a total transaction of $174,000.00. Following the sale, the director owned 25,027 shares of the company’s stock, valued at approximately $1,451,566. The trade was a 10.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael Baur sold 57,359 shares of the company’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $58.04, for a total transaction of $3,329,116.36. Following the transaction, the chief executive officer owned 200,698 shares in the company, valued at $11,648,511.92. The trade was a 22.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 95,632 shares of company stock worth $5,484,582 over the last three months. 3.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ScanSource

Several institutional investors have recently modified their holdings of SCSC. Signaturefd LLC increased its stake in ScanSource by 128.1% in the 3rd quarter. Signaturefd LLC now owns 2,108 shares of the industrial products company’s stock valued at $124,000 after purchasing an additional 1,184 shares in the last quarter. Freestone Grove Partners LP acquired a new position in ScanSource during the second quarter worth $119,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in ScanSource during the second quarter worth $134,000. Fulcrum Asset Management LLP boosted its position in ScanSource by 6,672.0% during the third quarter. Fulcrum Asset Management LLP now owns 3,386 shares of the industrial products company’s stock worth $196,000 after purchasing an additional 3,336 shares in the last quarter. Finally, RHS Financial LLC purchased a new stake in ScanSource during the third quarter worth $210,000. Hedge funds and other institutional investors own 97.91% of the company’s stock.

Key Headlines Impacting ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Fiscal Q1 revenue rose 30.1% year over year to $962.3 million, topping analysts’ $860.4 million estimate. ScanSource also forecast fiscal 2027 revenue of $3.8 billion to $4.0 billion, above the roughly $3.7 billion consensus. Article: ScanSource posts better-than-expected sales and guides for strong full-year sales
• Negative Sentiment: Adjusted EPS was $0.86, missing the $1.12 consensus and down from $1.06 a year earlier. The earnings miss suggests the strong sales growth has not translated into comparable per-share earnings. Article: ScanSource shares fall after lower fiscal Q1 non-GAAP earnings miss estimates
• Negative Sentiment: Shares fell below their 200-day moving average following the disappointing results, a technical signal that may add to near-term selling pressure. Article: ScanSource shares break below 200-day moving average on disappointing earnings

ScanSource Company Profile

ScanSource, Inc (NASDAQ: SCSC) is a technology distributor that connects manufacturers of business technology products with value-added resellers, systems integrators and other channel partners. The company provides products, services and expertise intended to help partners design, deploy and support technology solutions for business customers.

ScanSource’s offerings include point-of-sale and payment technology, barcode scanners, mobile computing devices, networking equipment, cybersecurity products, communications systems and cloud-based services.