Wall Street Zen Upgrades ScanSource (NASDAQ:SCSC) to Strong-Buy

ScanSource (NASDAQ:SCSC) was upgraded by stock analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also weighed in on SCSC. Barclays lifted their target price on shares of ScanSource from $43.00 to $51.00 and gave the company an “equal weight” rating in a report on Monday, October 12th. Weiss Ratings upgraded shares of ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Northcoast Research downgraded shares of ScanSource from a “buy” rating to a “neutral” rating in a report on Monday, August 17th. Finally, Zacks Research raised shares of ScanSource from a “hold” rating to a “strong-buy” rating in a report on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $51.00.

ScanSource Price Performance

ScanSource stock opened at $60.02 on Friday. The firm has a market cap of $1.21 billion, a price-to-earnings ratio of 16.40, a price-to-earnings-growth ratio of 0.82 and a beta of 1.25. ScanSource has a 52 week low of $33.76 and a 52 week high of $66.78. The business’s 50-day moving average price is $57.30 and its 200 day moving average price is $50.66. The company has a quick ratio of 1.15, a current ratio of 1.76 and a debt-to-equity ratio of 0.11.

ScanSource (NASDAQ:SCSC) last announced its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.14 by $0.32. ScanSource had a return on equity of 10.10% and a net margin of 2.44%. The company had revenue of $953.11 million during the quarter, compared to the consensus estimate of $814.35 million. During the same period in the previous year, the company posted $1.02 earnings per share. ScanSource’s revenue for the quarter was up 17.3% on a year-over-year basis. As a group, sell-side analysts anticipate that ScanSource will post 4.90 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Charles Mathis sold 3,000 shares of the company’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $58.00, for a total value of $174,000.00. Following the completion of the transaction, the director owned 25,027 shares of the company’s stock, valued at approximately $1,451,566. This represents a 10.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Stephen Jones sold 10,000 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $56.76, for a total value of $567,600.00. Following the transaction, the chief financial officer owned 87,421 shares in the company, valued at $4,962,015.96. This represents a 10.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 95,632 shares of company stock worth $5,484,582 in the last 90 days. 3.18% of the stock is currently owned by company insiders.

Institutional Trading of ScanSource

A number of institutional investors and hedge funds have recently made changes to their positions in SCSC. SummerHaven Investment Management LLC lifted its position in shares of ScanSource by 4.9% during the 3rd quarter. SummerHaven Investment Management LLC now owns 18,065 shares of the industrial products company’s stock valued at $1,061,000 after buying an additional 837 shares in the last quarter. Assenagon Asset Management S.A. acquired a new stake in ScanSource in the 3rd quarter valued at $857,000. RHS Financial LLC acquired a new stake in ScanSource in the 3rd quarter valued at $210,000. Engineers Gate Manager LP acquired a new stake in ScanSource in the 2nd quarter valued at $999,000. Finally, HighTower Advisors LLC purchased a new stake in ScanSource in the 2nd quarter worth $246,000. 97.91% of the stock is currently owned by hedge funds and other institutional investors.

ScanSource Company Profile

ScanSource, Inc (NASDAQ: SCSC) is a technology distributor that connects manufacturers of hardware, software and services with value-added resellers, systems integrators and other business-to-business technology providers. The company is headquartered in Greenville, South Carolina, and focuses on helping channel partners design, purchase and deploy technology solutions for commercial and public-sector customers.

ScanSource distributes products and services across areas including barcode scanning and data capture, point-of-sale and payment systems, networking, communications, cybersecurity, cloud and other information technology solutions.