ScanSource (NASDAQ:SCSC) Shares Down 4.7% – What’s Next?

Shares of ScanSource, Inc. (NASDAQ:SCSC) traded down 4.7% during mid-day trading on Wednesday. The company traded as low as $58.37 and last traded at $58.3750. 53,573 shares traded hands during trading, a decline of 78% from the average session volume of 238,721 shares. The stock had previously closed at $61.25.

Analyst Ratings Changes

SCSC has been the topic of a number of research analyst reports. Zacks Research downgraded ScanSource from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 20th. Northcoast Research lowered ScanSource from a “buy” rating to a “neutral” rating in a report on Monday, August 17th. Wall Street Zen raised shares of ScanSource from a “buy” rating to a “strong-buy” rating in a research report on Sunday, October 25th. Weiss Ratings upgraded shares of ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Finally, Barclays boosted their target price on shares of ScanSource from $43.00 to $51.00 and gave the stock an “equal weight” rating in a research report on Monday, October 12th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, ScanSource presently has a consensus rating of “Hold” and a consensus target price of $51.00.

ScanSource Price Performance

The stock has a fifty day moving average of $58.60 and a two-hundred day moving average of $47.76. The company has a current ratio of 1.76, a quick ratio of 1.15 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $1.20 billion, a price-to-earnings ratio of 16.11, a PEG ratio of 0.81 and a beta of 1.25.

ScanSource (NASDAQ:SCSC) last released its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.14 by $0.32. ScanSource had a net margin of 2.44% and a return on equity of 10.10%. The business had revenue of $953.11 million for the quarter, compared to analysts’ expectations of $814.35 million. During the same period in the prior year, the firm earned $1.02 earnings per share. ScanSource’s revenue was up 17.3% compared to the same quarter last year. As a group, equities research analysts forecast that ScanSource, Inc. will post 4.90 earnings per share for the current year.

Insider Buying and Selling at ScanSource

In other news, CFO Stephen Jones sold 10,000 shares of the business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $56.76, for a total value of $567,600.00. Following the completion of the transaction, the chief financial officer owned 87,421 shares of the company’s stock, valued at $4,962,015.96. The trade was a 10.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Charles Mathis sold 3,000 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $58.00, for a total transaction of $174,000.00. Following the sale, the director owned 25,027 shares in the company, valued at $1,451,566. This trade represents a 10.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,632 shares of company stock worth $5,484,582 over the last quarter. Company insiders own 3.18% of the company’s stock.

Hedge Funds Weigh In On ScanSource

Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of ScanSource in the second quarter valued at about $200,140,000. Pzena Investment Management LLC acquired a new position in ScanSource in the 2nd quarter valued at about $57,807,000. Bank of New York Mellon Corp bought a new position in ScanSource in the 2nd quarter valued at about $7,036,000. Empowered Funds LLC bought a new position in ScanSource in the 2nd quarter valued at about $5,517,000. Finally, Meeder Asset Management Inc. acquired a new stake in ScanSource during the second quarter worth approximately $4,859,000. 97.91% of the stock is owned by institutional investors.

About ScanSource

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.