ScanSource (NASDAQ:SCSC) Rating Lowered to Hold at Zacks Research

ScanSource (NASDAQ:SCSC) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, Zacks reports.

A number of other equities analysts have also recently issued reports on SCSC. Wall Street Zen upgraded ScanSource from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 17th. Northcoast Research downgraded ScanSource from a “buy” rating to a “neutral” rating in a report on Monday, August 17th. Barclays upped their target price on ScanSource from $43.00 to $51.00 and gave the company an “equal weight” rating in a report on Monday, October 12th. Finally, Weiss Ratings upgraded ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $51.00.

ScanSource Trading Up 1.4%

ScanSource stock opened at $61.05 on Tuesday. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.15 and a current ratio of 1.76. The firm has a market cap of $1.23 billion, a price-to-earnings ratio of 16.68, a price-to-earnings-growth ratio of 0.82 and a beta of 1.25. ScanSource has a 1 year low of $33.76 and a 1 year high of $66.78. The firm’s 50 day moving average price is $57.75 and its two-hundred day moving average price is $51.16.

ScanSource (NASDAQ:SCSC) last announced its quarterly earnings data on Thursday, August 20th. The industrial products company reported $1.46 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 quarter in the prior year, the firm earned $1.02 EPS. The company’s quarterly revenue was up 17.3% compared to the same quarter last year. On average, research analysts predict that ScanSource will post 4.90 EPS for the current fiscal year.

Insider Activity

In other news, CEO Michael Baur sold 57,359 shares of the business’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $58.04, for a total transaction of $3,329,116.36. Following the sale, 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. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Brandy Ford sold 5,293 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $57.43, for a total transaction of $303,976.99. Following the completion of the sale, the chief accounting officer owned 9,907 shares of the company’s stock, valued at approximately $568,959.01. This trade represents a 34.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 95,632 shares of company stock worth $5,484,582 over the last three months. 3.18% of the stock is owned by insiders.

Hedge Funds Weigh In On ScanSource

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. SummerHaven Investment Management LLC raised its stake in 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 purchasing an additional 837 shares during the period. Wedge Capital Management L L P NC boosted its position in shares of ScanSource by 2.8% in the second quarter. Wedge Capital Management L L P NC now owns 73,185 shares of the industrial products company’s stock worth $3,812,000 after buying an additional 1,963 shares during the period. Strs Ohio boosted its position in shares of ScanSource by 12.3% in the first quarter. Strs Ohio now owns 18,300 shares of the industrial products company’s stock worth $664,000 after buying an additional 2,000 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of ScanSource by 5.0% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 44,398 shares of the industrial products company’s stock valued at $2,313,000 after buying an additional 2,126 shares in the last quarter. Finally, Freestone Grove Partners LP purchased a new position in shares of ScanSource during the second quarter valued at $119,000. 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 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.