ScanSource (NASDAQ:SCSC) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen downgraded ScanSource from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $43.00.
• ScanSource reported quarterly earnings of $1.46 per share, beating estimates by $0.32, while revenue rose 17.3% year over year to $953.11 million.
• Company insiders sold 95,632 shares worth approximately $5.48 million over the past 90 days; institutional investors and hedge funds own 97.91% of the stock.

ScanSource (NASDAQ:SCSC - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other analysts have also issued reports on SCSC. Zacks Research raised ScanSource from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 24th. Weiss Ratings reiterated a "hold (c+)" rating on shares of ScanSource in a research note on Wednesday, August 26th. Finally, Northcoast Research downgraded ScanSource from a "buy" rating to a "neutral" rating in a report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $43.00.

ScanSource Trading Down 0.8%

NASDAQ SCSC opened at $61.73 on Friday. The stock has a market cap of $1.24 billion, a P/E ratio of 16.87, a PEG ratio of 0.91 and a beta of 1.25. The company's fifty day simple moving average is $56.56 and its 200-day simple moving average is $48.82. The company has a current ratio of 1.76, a quick ratio of 1.15 and a debt-to-equity ratio of 0.11. ScanSource has a 52 week low of $33.76 and a 52 week high of $66.78.

ScanSource (NASDAQ:SCSC - Get Free Report) last released its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 earnings per share for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $814.35 million. During the same period last year, the business earned $1.02 EPS. The business's revenue was up 17.3% on a year-over-year basis. Equities research analysts predict that ScanSource will post 4.56 EPS for the current fiscal year.

Insider Transactions at ScanSource

In other news, CEO Michael L. Baur sold 57,359 shares of the business's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $58.04, for a total value of $3,329,116.36. Following the completion of the sale, the chief executive officer directly owned 200,698 shares in the company, valued at approximately $11,648,511.92. The trade was a 22.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Brandy Ford sold 5,293 shares of the company's stock in a transaction that occurred 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 sale, the chief accounting officer directly owned 9,907 shares in the company, valued at approximately $568,959.01. This represents a 34.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 95,632 shares of company stock worth $5,484,582. 3.18% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ScanSource

A number of hedge funds have recently added to or reduced their stakes in the business. Freestone Grove Partners LP bought a new position in ScanSource in the second quarter worth about $119,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in ScanSource in the second quarter valued at approximately $134,000. HighTower Advisors LLC bought a new position in shares of ScanSource during the second quarter valued at approximately $246,000. The Manufacturers Life Insurance Company bought a new position in shares of ScanSource during the second quarter valued at approximately $289,000. Finally, EP Wealth Advisors LLC acquired a new stake in shares of ScanSource during the 2nd quarter worth approximately $317,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.