ScanSource (NASDAQ:SCSC) Stock Rating Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded ScanSource from “buy” to “strong-buy,” although broader analyst sentiment remains cautious: the stock carries an average “hold” rating and a $51 consensus price target.
• ScanSource reported quarterly EPS of $1.46, beating estimates of $1.14, while revenue reached $953.1 million, up 17.3% year over year and above expectations.
• Shares opened at $61.05, up 1.8%, with a 12-month range of $33.76 to $66.78. Institutional investors own approximately 97.91% of the stock, while insiders sold roughly $5.5 million in shares over the past 90 days.

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

Several other equities research analysts have also recently weighed in on the stock. Weiss Ratings upgraded shares of ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Barclays increased their price objective on shares of ScanSource from $43.00 to $51.00 and gave the company an "equal weight" rating in a research report on Monday, October 12th. Zacks Research cut shares of ScanSource from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 20th. Finally, Northcoast Research cut shares of ScanSource from a "buy" rating to a "neutral" rating in a research note 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. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $51.00.

ScanSource Trading Up 1.8%

NASDAQ:SCSC opened at $61.05 on Friday. The company has a market cap of $1.23 billion, a PE ratio of 16.68, a price-to-earnings-growth ratio of 0.83 and a beta of 1.25. The company has a 50 day simple moving average of $58.06 and a two-hundred day simple moving average of $51.40. 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 12 month low of $33.76 and a 12 month high of $66.78.

ScanSource (NASDAQ:SCSC - Get Free Report) last released its quarterly earnings data on Thursday, August 20th. The industrial products company reported $1.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.14 by $0.32. The business had revenue of $953.11 million for the quarter, compared to the consensus estimate of $814.35 million. ScanSource had a return on equity of 10.10% and a net margin of 2.44%. The company's revenue was up 17.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.02 EPS. Research analysts forecast that ScanSource will post 4.90 earnings per share for the current year.

Insider Activity

In other ScanSource news, Director Charles Mathis sold 3,000 shares of the business's stock in a transaction 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 transaction, the director owned 25,027 shares in the company, valued at $1,451,566. The trade was a 10.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Stephen Jones sold 10,000 shares of the stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $56.76, for a total transaction of $567,600.00. Following the completion of the sale, the chief financial officer directly owned 87,421 shares in the company, valued at approximately $4,962,015.96. This represents a 10.26% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 95,632 shares of company stock valued at $5,484,582 over the last ninety days. 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 SCSC. Signaturefd LLC increased its position in ScanSource by 128.1% during the 3rd quarter. Signaturefd LLC now owns 2,108 shares of the industrial products company's stock valued at $124,000 after purchasing an additional 1,184 shares during the period. Yousif Capital Management LLC raised its holdings in shares of ScanSource by 5.5% in the 3rd quarter. Yousif Capital Management LLC now owns 5,121 shares of the industrial products company's stock valued at $301,000 after purchasing an additional 265 shares in the last quarter. Nisa Investment Advisors LLC raised its holdings in shares of ScanSource by 64.4% in the 3rd quarter. Nisa Investment Advisors LLC now owns 6,285 shares of the industrial products company's stock valued at $369,000 after purchasing an additional 2,462 shares in the last quarter. SummerHaven Investment Management LLC raised its holdings in shares of ScanSource by 4.9% in the 3rd quarter. SummerHaven Investment Management LLC now owns 18,065 shares of the industrial products company's stock valued at $1,061,000 after purchasing an additional 837 shares in the last quarter. Finally, Assenagon Asset Management S.A. purchased a new stake in shares of ScanSource in the 3rd quarter worth approximately $857,000. 97.91% of the stock is currently owned by institutional investors.

ScanSource Company Profile

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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