ScanSource (NASDAQ:SCSC) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded ScanSource to “strong-buy” from “buy.” The broader analyst consensus is “Moderate Buy,” with a consensus price target of $51.
• ScanSource reported stronger-than-expected quarterly results, with earnings per share of $1.46 versus estimates of $1.14 and revenue of $953.11 million, up 17.3% year over year.
• The stock opened at $60.02, while institutional investors own 97.91% of shares. Insiders sold 95,632 shares worth approximately $5.48 million over the past quarter.

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

Several other equities analysts have also issued reports on SCSC. Barclays lifted their target price on ScanSource from $43.00 to $51.00 and gave the company an "equal weight" rating in a research note on Monday, October 12th. Zacks Research raised shares of ScanSource from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 24th. Weiss Ratings upgraded shares of ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Finally, Northcoast Research cut 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 Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $51.00.

ScanSource Stock Performance

Shares of NASDAQ:SCSC opened at $60.02 on Friday. The company has a market capitalization of $1.21 billion, a price-to-earnings ratio of 16.40, a price-to-earnings-growth ratio of 0.82 and a beta of 1.25. ScanSource has a 52 week low of $33.76 and a 52 week high of $66.78. The company has a quick ratio of 1.15, a current ratio of 1.76 and a debt-to-equity ratio of 0.11. The firm has a 50 day moving average of $57.30 and a 200 day moving average of $50.56.

ScanSource (NASDAQ:SCSC - Get Free Report) last posted its earnings results on Thursday, August 20th. The industrial products company reported $1.46 earnings per share for the quarter, topping analysts' consensus estimates of $1.14 by $0.32. ScanSource had a return on equity of 10.10% and a net margin of 2.44%. The company had revenue of $953.11 million during the quarter, compared to analyst estimates of $814.35 million. During the same quarter in the prior year, the business earned $1.02 earnings per share. ScanSource's revenue was up 17.3% on a year-over-year basis. On average, sell-side analysts predict that ScanSource will post 4.90 earnings per share for the current fiscal year.

Insider Activity at ScanSource

In other 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 sale, the director directly owned 25,027 shares of the company's stock, valued at $1,451,566. The trade was a 10.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Stephen Jones sold 10,000 shares of the company's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $56.76, for a total value of $567,600.00. Following the completion of the transaction, the chief financial officer directly owned 87,421 shares in the company, valued at approximately $4,962,015.96. The trade was a 10.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 95,632 shares of company stock valued at $5,484,582. Company insiders own 3.18% of the company's stock.

Institutional Trading of ScanSource

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of ScanSource during the second quarter worth about $200,140,000. Pzena Investment Management LLC purchased a new stake in ScanSource in the second quarter valued at approximately $57,807,000. SG Americas Securities LLC boosted 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 valued at $17,968,000 after buying an additional 211,232 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in ScanSource in the 2nd quarter worth approximately $7,036,000. Finally, Empowered Funds LLC acquired a new position in ScanSource in the 2nd quarter worth approximately $5,517,000. 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.