ScanSource (NASDAQ:SCSC) Upgraded by Wall Street Zen to Strong-Buy Rating

Key Points

• Wall Street Zen upgraded ScanSource to “strong-buy” from “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $43.00.
• ScanSource reported strong quarterly results, with EPS of $1.46 beating estimates of $1.14 and revenue of $953.11 million exceeding forecasts; revenue increased 17.3% year over year.
• Institutional ownership is high at 97.91%, with major investors including BlackRock, Vanguard and California State Teachers Retirement System holding or expanding significant positions.

ScanSource (NASDAQ:SCSC - Get Free Report) was upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday.

SCSC has been the subject of several other reports. Zacks Research upgraded shares of ScanSource from a "hold" rating to a "strong-buy" rating in a report on Monday, August 24th. Weiss Ratings reissued a "hold (c+)" rating on shares of ScanSource in a report on Wednesday. Finally, Northcoast Research downgraded ScanSource from a "buy" rating to a "neutral" rating in a research 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.com, ScanSource presently has an average rating of "Moderate Buy" and an average target price of $43.00.

ScanSource Stock Performance

SCSC stock opened at $56.55 on Friday. The company has a market capitalization of $1.14 billion, a P/E ratio of 15.45, a PEG ratio of 0.85 and a beta of 1.28. The company has a 50-day simple moving average of $53.83 and a 200 day simple moving average of $45.07. ScanSource has a fifty-two week low of $33.76 and a fifty-two 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.

ScanSource (NASDAQ:SCSC - Get Free Report) last released 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. ScanSource had a net margin of 2.44% and a return on equity of 10.10%. The firm had revenue of $953.11 million for the quarter, compared to analysts' expectations of $814.35 million. During the same quarter last year, the company earned $1.02 EPS. ScanSource's quarterly revenue was up 17.3% on a year-over-year basis. Sell-side analysts predict that ScanSource will post 4.56 earnings per share for the current fiscal year.

Institutional Investors Weigh In On ScanSource

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in shares of ScanSource during the 2nd quarter worth $200,140,000. Vanguard Group Inc. raised its position in shares of ScanSource by 2.9% during the fourth quarter. Vanguard Group Inc. now owns 2,827,007 shares of the industrial products company's stock worth $110,423,000 after purchasing an additional 78,993 shares during the period. California State Teachers Retirement System raised its position in shares of ScanSource by 4,972.0% during the second quarter. California State Teachers Retirement System now owns 1,338,036 shares of the industrial products company's stock worth $69,698,000 after purchasing an additional 1,311,655 shares during the period. Wasatch Advisors LP lifted its holdings in shares of ScanSource by 34.9% during the third quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company's stock valued at $50,130,000 after purchasing an additional 294,624 shares during the last quarter. Finally, Pzena Investment Management LLC purchased a new stake in shares of ScanSource during the second quarter valued at $57,807,000. Institutional investors and hedge funds own 97.91% of the company's stock.

ScanSource Company Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source