ScanSource (NASDAQ:SCSC) Stock Breaks Below Two Hundred Day Moving Average After Earnings Miss

Shares of ScanSource, Inc. (NASDAQ:SCSC) passed below its 200-day moving average during trading on Thursday following a weaker than expected earnings announcement. The stock has a 200-day moving average of $48.09 and traded as low as $45.00. ScanSource shares last traded at $45.07, with a volume of 718,787 shares trading hands.

The industrial products company reported $0.86 EPS for the quarter, missing analysts’ consensus estimates of $1.12 by ($0.26). The company had revenue of $962.29 million during the quarter, compared to analysts’ expectations of $860.35 million. ScanSource had a return on equity of 10.10% and a net margin of 2.44%. ScanSource’s quarterly revenue was up 30.1% on a year-over-year basis. During the same period in the prior year, the firm earned $1.06 EPS.

More ScanSource News

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Fiscal first-quarter revenue rose 30.1% year over year to $962.29 million, exceeding analysts’ $860.35 million estimate. MarketBeat earnings report
• Positive Sentiment: ScanSource forecast fiscal 2027 revenue of $3.8 billion to $4.0 billion, above the $3.7 billion consensus estimate, signaling expectations for continued sales growth. MSN article on sales and guidance
• Negative Sentiment: Adjusted earnings of $0.86 per share missed the $1.12 consensus estimate and were below $1.06 a year earlier. The profit shortfall likely outweighed the strong revenue and guidance news for investors. Zacks earnings article

Analyst Ratings Changes

Several research analysts recently issued reports on SCSC shares. Barclays upped 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. Northcoast Research downgraded ScanSource from a “buy” rating to a “neutral” rating in a research report on Monday, August 17th. Weiss Ratings raised ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Wall Street Zen upgraded ScanSource from a “buy” rating to a “strong-buy” rating in a report on Sunday, October 25th. Finally, Zacks Research cut ScanSource from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 20th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $51.00.

Insider Buying and Selling at ScanSource

In other news, CAO Brandy Ford sold 5,293 shares of the company’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $57.43, for a total value 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 represents a 34.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Michael L. Baur sold 57,359 shares of the stock in a transaction 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 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 position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 95,632 shares of company stock valued at $5,484,582. 3.18% of the stock is owned by insiders.

Institutional Trading of ScanSource

Several hedge funds have recently added to or reduced their stakes in SCSC. Maryland State Retirement & Pension System purchased a new stake in ScanSource during the third quarter valued at about $261,000. Fulcrum Asset Management LLP grew its stake 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 valued at $196,000 after buying an additional 3,336 shares during the last quarter. Ethic Inc. bought a new position in shares of ScanSource during the third quarter valued at about $285,000. Pictet Asset Management Holding SA bought a new position in shares of ScanSource during the third quarter valued at about $222,000. Finally, CenterBook Partners LP increased its holdings in shares of ScanSource by 56.9% in the third quarter. CenterBook Partners LP now owns 14,917 shares of the industrial products company’s stock worth $876,000 after buying an additional 5,412 shares during the period. 97.91% of the stock is owned by institutional investors.

ScanSource Stock Performance

The company has a quick ratio of 1.15, a current ratio of 1.76 and a debt-to-equity ratio of 0.11. The company has a fifty day moving average price of $58.51 and a 200 day moving average price of $48.09. The stock has a market cap of $918.08 million, a PE ratio of 12.31, a P/E/G ratio of 0.78 and a beta of 1.28.

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.