ScanSource (NASDAQ:SCSC) Sees Strong Trading Volume – What’s Next?

ScanSource, Inc. (NASDAQ:SCSC) saw unusually-high trading volume on Wednesday. Approximately 289,145 shares traded hands during mid-day trading, an increase of 20% from the average daily volume of 241,259 shares. The stock last traded at $56.7790 and had previously closed at $56.74.

Wall Street Analyst Weigh In

Several brokerages have issued reports on SCSC. Weiss Ratings raised ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Zacks Research cut ScanSource from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 20th. Northcoast Research lowered ScanSource from a “buy” rating to a “neutral” rating in a research report on Monday, August 17th. Barclays lifted their price target on ScanSource from $43.00 to $51.00 and gave the stock an “equal weight” rating in a research report on Monday, October 12th. Finally, Wall Street Zen raised ScanSource from a “buy” rating to a “strong-buy” rating in a report on Sunday, October 25th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $51.00.

ScanSource Stock Up 0.3%

The firm has a market capitalization of $1.16 billion, a PE ratio of 15.54, a PEG ratio of 0.77 and a beta of 1.28. The business’s fifty day moving average price is $58.72 and its 200 day moving average price is $48.00. 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 issued its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 earnings per share for the quarter, topping the consensus estimate of $1.14 by $0.32. The firm had revenue of $953.11 million during the quarter, compared to the consensus estimate of $814.35 million. ScanSource had a return on equity of 10.10% and a net margin of 2.44%. The company’s revenue for the quarter was up 17.3% on a year-over-year basis. During the same period last year, the company earned $1.02 earnings per share. On average, equities research analysts forecast that ScanSource, Inc. will post 4.90 earnings per share for the current fiscal year.

Insider Activity at ScanSource

In other ScanSource news, CEO Michael Baur sold 57,359 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer directly owned 200,698 shares in the company, valued at approximately $11,648,511.92. This represents a 22.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Brandy Ford sold 5,293 shares of the stock in a transaction dated 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 directly owned 9,907 shares in the company, valued at approximately $568,959.01. The trade was a 34.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 95,632 shares of company stock worth $5,484,582 in the last ninety days. Corporate insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On ScanSource

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Freestone Grove Partners LP purchased a new stake in ScanSource in the 2nd quarter worth approximately $119,000. Signaturefd LLC lifted its stake in shares of ScanSource by 128.1% during the 3rd quarter. Signaturefd LLC now owns 2,108 shares of the industrial products company’s stock worth $124,000 after purchasing an additional 1,184 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of ScanSource during the 2nd quarter worth $134,000. Fulcrum Asset Management LLP boosted its holdings in shares of ScanSource by 6,672.0% during the third quarter. Fulcrum Asset Management LLP now owns 3,386 shares of the industrial products company’s stock worth $196,000 after purchasing an additional 3,336 shares during the last quarter. Finally, RHS Financial LLC acquired a new stake in shares of ScanSource during the third quarter worth $210,000. 97.91% of the stock is currently owned by hedge funds and other 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.