ScanSource (NASDAQ:SCSC) Lowered to “Strong Sell” Rating by Zacks Research

ScanSource (NASDAQ:SCSC) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Several other brokerages have also recently issued reports on SCSC. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ScanSource in a research report on Monday, December 29th. Wall Street Zen lowered shares of ScanSource from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, ScanSource has an average rating of “Hold” and a consensus target price of $42.50.

ScanSource Price Performance

SCSC stock opened at $36.71 on Monday. The stock has a market cap of $788.53 million, a PE ratio of 11.26, a P/E/G ratio of 0.64 and a beta of 1.28. ScanSource has a 12 month low of $28.75 and a 12 month high of $46.25. The company has a 50-day moving average price of $40.73 and a 200 day moving average price of $41.72. The company has a current ratio of 1.96, a quick ratio of 1.22 and a debt-to-equity ratio of 0.11.

ScanSource (NASDAQ:SCSC) last posted its quarterly earnings results on Thursday, February 5th. The industrial products company reported $0.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.20). The firm had revenue of $766.51 million for the quarter, compared to the consensus estimate of $782.46 million. ScanSource had a return on equity of 9.35% and a net margin of 2.44%.ScanSource’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.85 EPS. Equities research analysts anticipate that ScanSource will post 3.33 earnings per share for the current year.

Insiders Place Their Bets

In other ScanSource news, CEO Michael L. Baur sold 9,559 shares of the stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $40.82, for a total transaction of $390,198.38. Following the sale, the chief executive officer directly owned 191,971 shares of the company’s stock, valued at approximately $7,836,256.22. This trade represents a 4.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Stephen Jones sold 5,020 shares of the company’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $42.30, for a total value of $212,346.00. Following the completion of the sale, the chief financial officer owned 83,326 shares in the company, valued at $3,524,689.80. The trade was a 5.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 25,020 shares of company stock valued at $1,035,669 over the last 90 days. 3.18% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ScanSource

A number of hedge funds and other institutional investors have recently made changes to their positions in SCSC. Y Intercept Hong Kong Ltd purchased a new position in ScanSource in the third quarter valued at $611,000. New York State Common Retirement Fund increased its stake in shares of ScanSource by 326.9% in the 3rd quarter. New York State Common Retirement Fund now owns 36,696 shares of the industrial products company’s stock valued at $1,614,000 after purchasing an additional 28,100 shares in the last quarter. Envestnet Asset Management Inc. boosted its position in ScanSource by 90.4% during the second quarter. Envestnet Asset Management Inc. now owns 14,151 shares of the industrial products company’s stock worth $592,000 after purchasing an additional 6,720 shares in the last quarter. WINTON GROUP Ltd acquired a new stake in ScanSource in the second quarter valued at approximately $2,384,000. Finally, American Century Companies Inc. increased its position in shares of ScanSource by 4.4% in 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 buying an additional 36,161 shares in the last quarter. Institutional investors and hedge funds own 97.91% of the company’s stock.

ScanSource Company Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.