ScanSource (NASDAQ:SCSC) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded ScanSource from “strong buy” to “buy.” Across analysts, the stock carries a consensus “hold” rating and an average price target of $51.
• Quarterly revenue rose 30.1% year over year to $962.3 million, beating estimates, but EPS of $0.86 missed the $1.12 consensus and was below $1.06 a year earlier.
• ScanSource shares were down 5.1%; the article noted they had fallen below their 200-day moving average after the earnings report.

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

Several other analysts have also issued reports on the company. Weiss Ratings raised ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Barclays raised their target price on ScanSource from $43.00 to $51.00 and gave the stock an "equal weight" rating in a research note on Monday, October 12th. Northcoast Research cut shares of ScanSource from a "buy" rating to a "neutral" rating in a report on Monday, August 17th. Finally, Zacks Research downgraded shares of ScanSource from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 20th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $51.00.

ScanSource Stock Down 5.1%

ScanSource stock opened at $42.78 on Friday. The stock has a 50-day simple moving average of $58.21 and a 200-day simple moving average of $48.11. The company has a market capitalization of $871.43 million, a P/E ratio of 13.41, a PEG ratio of 0.77 and a beta of 1.28. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.15 and a current ratio of 1.76. ScanSource has a fifty-two week low of $33.76 and a fifty-two week high of $66.78.

ScanSource (NASDAQ:SCSC - Get Free Report) last announced its earnings results on Thursday, November 5th. The industrial products company reported $0.86 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.12 by ($0.26). The firm had revenue of $962.29 million for the quarter, compared to analyst estimates of $860.35 million. ScanSource had a net margin of 2.44% and a return on equity of 10.10%. ScanSource's revenue for the quarter was up 30.1% compared to the same quarter last year. During the same period last year, the firm earned $1.06 earnings per share. Equities research analysts expect that ScanSource will post 4.90 earnings per share for the current year.

Insider Buying and Selling

In other ScanSource news, CEO Michael Baur sold 57,359 shares of the business's stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 200,698 shares of the company's stock, valued at $11,648,511.92. The trade was a 22.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Charles Mathis sold 3,000 shares of the company's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $58.00, for a total transaction of $174,000.00. Following the completion of the transaction, the director owned 25,027 shares of the company's stock, valued at $1,451,566. This trade represents a 10.70% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 95,632 shares of company stock worth $5,484,582. 3.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in ScanSource in the 2nd quarter worth approximately $200,140,000. Pzena Investment Management LLC acquired a new position in ScanSource during the second quarter worth $57,807,000. Bank of New York Mellon Corp acquired a new stake in ScanSource in the second quarter valued at approximately $7,036,000. Empowered Funds LLC acquired a new stake in shares of ScanSource in the 2nd quarter worth about $5,517,000. Finally, Meeder Asset Management Inc. purchased a new position in ScanSource during the second quarter worth about $4,859,000. 97.91% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about ScanSource

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Fiscal Q1 revenue rose 30.1% year over year to $962.3 million, topping analysts’ $860.4 million estimate. ScanSource also forecast fiscal 2027 revenue of $3.8 billion to $4.0 billion, above the roughly $3.7 billion consensus. Article: ScanSource posts better-than-expected sales and guides for strong full-year sales
• Negative Sentiment: Adjusted EPS was $0.86, missing the $1.12 consensus and down from $1.06 a year earlier. The earnings miss suggests the strong sales growth has not translated into comparable per-share earnings. Article: ScanSource shares fall after lower fiscal Q1 non-GAAP earnings miss estimates
• Negative Sentiment: Shares fell below their 200-day moving average following the disappointing results, a technical signal that may add to near-term selling pressure. Article: ScanSource shares break below 200-day moving average on disappointing earnings

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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