ScanSource (NASDAQ:SCSC) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded ScanSource from “strong buy” to “hold.” Across analysts, the stock has an average “hold” rating and an average price target of $51.
• ScanSource reported stronger-than-expected quarterly results, with EPS of $1.46 versus the $1.14 consensus estimate and revenue of $953.11 million, up 17.3% year over year.
• The shares opened at $61.05, above the consensus price target, while institutional investors own 97.91% of the stock. Insiders sold 95,632 shares worth approximately $5.5 million over the past three months.

ScanSource (NASDAQ:SCSC - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday, Zacks reports.

Several other research analysts have also recently issued reports on SCSC. Barclays increased their price target on ScanSource from $43.00 to $51.00 and gave the stock an "equal weight" rating in a research note on Monday, October 12th. Weiss Ratings upgraded shares of ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Wall Street Zen raised shares of ScanSource from a "buy" rating to a "strong-buy" rating in a report on Saturday, October 17th. Finally, Northcoast Research downgraded shares of 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 Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, ScanSource presently has an average rating of "Hold" and an average target price of $51.00.

ScanSource Stock Performance

Shares of NASDAQ SCSC opened at $61.05 on Tuesday. ScanSource has a 12-month low of $33.76 and a 12-month high of $66.78. The company has a market cap of $1.23 billion, a PE ratio of 16.68, a P/E/G ratio of 0.82 and a beta of 1.25. The stock has a 50 day simple moving average of $57.75 and a 200-day simple moving average of $51.16. 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 (NASDAQ:SCSC - Get Free Report) last posted its 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. The firm had revenue of $953.11 million for the quarter, compared to analysts' expectations of $814.35 million. ScanSource had a return on equity of 10.10% and a net margin of 2.44%. The firm's revenue was up 17.3% compared to the same quarter last year. During the same period last year, the firm earned $1.02 EPS. On average, equities research analysts forecast that ScanSource will post 4.90 EPS for the current year.

Insider Transactions at ScanSource

In other ScanSource news, CFO Stephen Jones sold 10,000 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $56.76, for a total transaction of $567,600.00. Following the completion of the transaction, the chief financial officer directly owned 87,421 shares of the company's stock, valued at approximately $4,962,015.96. This trade represents a 10.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael L. Baur sold 57,359 shares of ScanSource stock in a transaction on Friday, September 11th. The shares were sold at an average price of $58.04, for a total value of $3,329,116.36. Following the transaction, the chief executive officer owned 200,698 shares in the company, valued at approximately $11,648,511.92. This trade represents a 22.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,632 shares of company stock worth $5,484,582 in the last three months. 3.18% of the stock is currently owned by company insiders.

Institutional Trading of ScanSource

A number of hedge funds and other institutional investors have recently modified their holdings of SCSC. BlackRock Inc. bought a new position in ScanSource during the second quarter valued at about $200,140,000. Pzena Investment Management LLC bought a new stake in ScanSource in the second quarter worth about $57,807,000. SG Americas Securities LLC raised its position in ScanSource by 74.4% in the first quarter. SG Americas Securities LLC now owns 494,988 shares of the industrial products company's stock worth $17,968,000 after acquiring an additional 211,232 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in ScanSource in the second quarter worth about $7,036,000. Finally, Empowered Funds LLC acquired a new stake in ScanSource in the 2nd quarter valued at about $5,517,000. Institutional investors own 97.91% of the company's stock.

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.

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