ScanSource (NASDAQ:SCSC) Stock Price Down 2.7% – Here’s Why

ScanSource, Inc. (NASDAQ:SCSC) shares fell 2.7% during mid-day trading on Friday . The company traded as low as $54.05 and last traded at $54.87. 41,486 shares were traded during trading, a decline of 82% from the average daily volume of 229,743 shares. The stock had previously closed at $56.39.

Trending Headlines about ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Strong quarterly results: ScanSource reported fiscal Q4 revenue of $953.1 million, up 17.3% year over year, while earnings reached $1.46 per share, exceeding analyst expectations of $1.14. Growth was supported by higher Specialty Technology Solutions sales and continued demand for technology hardware. ScanSource Q4 earnings report
• Positive Sentiment: MicroAge acquisition expands growth opportunities: ScanSource agreed to acquire IT solutions integrator MicroAge for $220.5 million in cash. Management expects the transaction to strengthen its cloud, cybersecurity and managed-services capabilities, with closing targeted for the quarter ending September 30, 2026, subject to customary approvals. ScanSource to Acquire MicroAge
• Positive Sentiment: Optimistic fiscal 2027 outlook: ScanSource forecast revenue of approximately $3.4 billion to $3.5 billion, implying 6%–10% growth and exceeding the roughly $3.2 billion consensus estimate. The company also projected adjusted EBITDA of $158 million to $165 million and at least $85 million in free cash flow. ScanSource fiscal 2027 outlook
• Neutral Sentiment: Execution and valuation are now key: Investors appear focused on whether ScanSource can integrate MicroAge, realize expected synergies and maintain margins after the acquisition. The company’s results were encouraging, but its relatively small net margin leaves limited room for operational missteps.
• Negative Sentiment: Insider selling provides a cautionary signal: Company insiders made three open-market sales over the past six months and no purchases; CEO Michael Baur sold 25,000 shares. While insider sales do not necessarily indicate deteriorating fundamentals, they may temper enthusiasm after the recent rally.

Analyst Ratings Changes

A number of research analysts have weighed in on SCSC shares. Wall Street Zen raised shares of ScanSource from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Northcoast Research downgraded shares of ScanSource from a “buy” rating to a “neutral” rating in a research note on Monday. Finally, Weiss Ratings upgraded shares of ScanSource from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, May 29th. Four investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $43.00.

ScanSource Stock Down 1.8%

The stock has a market capitalization of $1.13 billion, a price-to-earnings ratio of 16.79, a price-to-earnings-growth ratio of 0.80 and a beta of 1.28. The firm has a 50-day moving average of $53.05 and a 200 day moving average of $44.49. The company has a current ratio of 1.86, a quick ratio of 1.20 and a debt-to-equity ratio of 0.11.

ScanSource (NASDAQ:SCSC) last issued its quarterly earnings data on Thursday, August 20th. The industrial products company reported $1.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.32. ScanSource had a net margin of 2.38% and a return on equity of 9.35%. The company had revenue of $953.11 million during the quarter, compared to the consensus estimate of $814.35 million. During the same quarter last year, the company earned $1.02 earnings per share. ScanSource’s revenue for the quarter was up 17.3% on a year-over-year basis. On average, sell-side analysts anticipate that ScanSource, Inc. will post 3.9 earnings per share for the current year.

Hedge Funds Weigh In On ScanSource

A number of institutional investors have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas grew its stake in ScanSource by 333.8% in the fourth quarter. Teacher Retirement System of Texas now owns 153,041 shares of the industrial products company’s stock worth $5,978,000 after purchasing an additional 117,762 shares in the last quarter. Renaissance Technologies LLC bought a new stake in ScanSource in the first quarter valued at about $766,000. Vanguard Group Inc. raised its stake in ScanSource by 2.9% during the fourth quarter. Vanguard Group Inc. now owns 2,827,007 shares of the industrial products company’s stock valued at $110,423,000 after buying an additional 78,993 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH raised its stake in ScanSource by 65.3% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 133,593 shares of the industrial products company’s stock valued at $5,222,000 after buying an additional 52,763 shares in the last quarter. Finally, Pzena Investment Management LLC bought a new position in ScanSource during the 2nd quarter worth approximately $57,807,000. Institutional investors and hedge funds own 97.91% of the company’s stock.

About ScanSource

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.