Barclays Forecasts Strong Price Appreciation for ScanSource (NASDAQ:SCSC) Stock

Key Points

• Barclays raised ScanSource’s price target from $43 to $51 but maintained an “equal weight” rating; the target implies approximately 16% downside from the stock’s $60.73 trading price.
• ScanSource reported stronger-than-expected quarterly results, with EPS of $1.46 versus the $1.14 consensus estimate and revenue of $953.1 million, up 17.3% year over year.
• Analyst sentiment is generally positive, with MarketBeat assigning the stock a “Moderate Buy” consensus rating and an average price target of $51, while insiders have sold approximately $5.5 million of shares over the past 90 days.

ScanSource (NASDAQ:SCSC - Get Free Report) had its price objective raised by investment analysts at Barclays from $43.00 to $51.00 in a research note issued on Monday, Benzinga reports. The firm presently has an "equal weight" rating on the industrial products company's stock. Barclays's target price would indicate a potential downside of 16.02% from the company's current price.

Other equities analysts have also recently issued reports about the company. Weiss Ratings raised ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday. Zacks Research raised ScanSource from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 24th. Wall Street Zen lowered ScanSource from a "strong-buy" rating to a "buy" rating in a research note on Saturday, October 3rd. Finally, Northcoast Research cut ScanSource from a "buy" rating to a "neutral" rating in a research report on Monday, August 17th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $51.00.

ScanSource Price Performance

NASDAQ:SCSC traded down $0.20 during mid-day trading on Monday, hitting $60.73. The company's stock had a trading volume of 130,556 shares, compared to its average volume of 240,362. ScanSource has a fifty-two week low of $33.76 and a fifty-two week high of $66.78. 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 company has a market capitalization of $1.22 billion, a price-to-earnings ratio of 16.59, a P/E/G ratio of 0.89 and a beta of 1.25. The stock has a fifty day moving average of $56.93 and a 200-day moving average of $49.81.

ScanSource (NASDAQ:SCSC - Get Free Report) last announced its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 EPS for the quarter, topping analysts' consensus estimates of $1.14 by $0.32. The firm had revenue of $953.11 million during the quarter, compared to analysts' expectations of $814.35 million. ScanSource had a net margin of 2.44% and a return on equity of 10.10%. The company's revenue for the quarter was up 17.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.02 earnings per share. As a group, equities analysts forecast that ScanSource will post 4.56 EPS for the current fiscal year.

Insider Activity

In other ScanSource news, CFO Stephen Jones sold 10,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $56.76, for a total value of $567,600.00. Following the transaction, the chief financial officer directly owned 87,421 shares in the company, valued at $4,962,015.96. The trade was a 10.26% decrease in their ownership of the stock. The transaction 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 company's stock in a transaction dated 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 directly owned 25,027 shares in the company, valued at $1,451,566. This represents a 10.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 95,632 shares of company stock worth $5,484,582. Company insiders own 3.18% of the company's stock.

Institutional Trading of ScanSource

Several hedge funds have recently modified their holdings of the company. Freestone Grove Partners LP bought a new position in shares of ScanSource in the second quarter valued at about $119,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in ScanSource during the 2nd quarter worth about $134,000. HighTower Advisors LLC bought a new stake in ScanSource during the 2nd quarter worth about $246,000. Aristides Capital LLC bought a new stake in ScanSource during the 1st quarter worth about $251,000. Finally, Inceptionr LLC bought a new stake in ScanSource during the 1st quarter worth about $267,000. Institutional investors and hedge funds own 97.91% of the company's stock.

About ScanSource

ScanSource, Inc NASDAQ: SCSC is a technology distributor that connects manufacturers of hardware, software and services with value-added resellers, systems integrators and other business-to-business technology providers. The company is headquartered in Greenville, South Carolina, and focuses on helping channel partners design, purchase and deploy technology solutions for commercial and public-sector customers.

ScanSource distributes products and services across areas including barcode scanning and data capture, point-of-sale and payment systems, networking, communications, cybersecurity, cloud and other information technology solutions.

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