ScanSource (NASDAQ:SCSC) Shares Gap Down – What’s Next?

ScanSource, Inc. (NASDAQ:SCSC)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $41.87, but opened at $37.36. ScanSource shares last traded at $41.1450, with a volume of 45,088 shares.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Zacks Research downgraded shares of ScanSource from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 21st. Wall Street Zen lowered shares of ScanSource from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of ScanSource in a research note on Wednesday, October 8th. Finally, Barclays began coverage on shares of ScanSource in a research report on Tuesday, October 7th. They issued an “equal weight” rating and a $43.00 price objective for the company. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $42.50.

ScanSource Stock Down 1.4%

The company has a debt-to-equity ratio of 0.14, a current ratio of 2.01 and a quick ratio of 1.30. The stock has a market capitalization of $895.92 million, a price-to-earnings ratio of 13.49, a PEG ratio of 0.71 and a beta of 1.37. The firm’s fifty day moving average is $43.10 and its 200-day moving average is $41.29.

ScanSource (NASDAQ:SCSC) last released its earnings results on Thursday, November 6th. The industrial products company reported $1.06 earnings per share for the quarter, topping the consensus estimate of $0.91 by $0.15. The company had revenue of $739.65 million during the quarter, compared to the consensus estimate of $787.37 million. ScanSource had a net margin of 2.35% and a return on equity of 9.38%. The company’s revenue was down 4.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.84 EPS. ScanSource has set its FY 2026 guidance at EPS. On average, sell-side analysts predict that ScanSource, Inc. will post 3.33 earnings per share for the current year.

Insider Activity at ScanSource

In related news, CEO Michael L. Baur sold 47,969 shares of the firm’s stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $44.34, for a total value of $2,126,945.46. Following the sale, the chief executive officer owned 202,512 shares of the company’s stock, valued at approximately $8,979,382.08. This trade represents a 19.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Rachel Hayden sold 752 shares of the firm’s stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $43.57, for a total transaction of $32,764.64. Following the completion of the sale, the executive vice president owned 14,918 shares in the company, valued at $649,977.26. The trade was a 4.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 153,677 shares of company stock worth $6,876,030 in the last 90 days. 3.18% of the stock is currently owned by insiders.

Institutional Trading of ScanSource

A number of hedge funds have recently modified their holdings of SCSC. Canada Pension Plan Investment Board acquired a new stake in shares of ScanSource during the 2nd quarter valued at about $25,000. CWM LLC lifted its stake in ScanSource by 159.6% during the third quarter. CWM LLC now owns 1,874 shares of the industrial products company’s stock worth $82,000 after purchasing an additional 1,152 shares during the period. Osaic Holdings Inc. boosted its holdings in ScanSource by 400.5% during the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company’s stock valued at $87,000 after purchasing an additional 1,670 shares in the last quarter. Quarry LP boosted its holdings in ScanSource by 344.3% during the first quarter. Quarry LP now owns 3,541 shares of the industrial products company’s stock valued at $120,000 after purchasing an additional 2,744 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of ScanSource by 22.3% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,879 shares of the industrial products company’s stock valued at $120,000 after purchasing an additional 524 shares during the period. Institutional investors own 97.91% of the company’s stock.

About ScanSource

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.