Hsbc Holdings PLC Purchases 22,715 Shares of ScanSource, Inc. $SCSC

Key Points

• Hsbc Holdings PLC increased its ScanSource stake by 160.3% in the second quarter, purchasing 22,715 additional shares and bringing its holdings to 36,881 shares valued at approximately $1.93 million. Institutional investors collectively own 97.91% of the company.
• ScanSource exceeded quarterly expectations, reporting EPS of $1.46 versus the $1.14 consensus and revenue of $953.11 million, up 17.3% year over year. Analysts’ consensus rating is “Moderate Buy,” with a $43 price target.
• Shares opened at $58.19 and remain near the upper end of their 52-week range of $33.76 to $66.78. Two executives sold shares, with the company attributing the CFO’s sale to tax-withholding obligations related to vested equity awards.

Hsbc Holdings PLC grew its stake in shares of ScanSource, Inc. (NASDAQ:SCSC - Free Report) by 160.3% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 36,881 shares of the industrial products company's stock after purchasing an additional 22,715 shares during the period. Hsbc Holdings PLC owned approximately 0.18% of ScanSource worth $1,933,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also added to or reduced their stakes in the company. BlackRock Inc. bought a new position in ScanSource in the 2nd quarter valued at $200,140,000. Wasatch Advisors LP increased its stake in ScanSource by 34.9% in 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 acquiring an additional 294,624 shares during the last quarter. Pzena Investment Management LLC purchased a new position in shares of ScanSource during the second quarter worth approximately $57,807,000. LSV Asset Management grew its holdings in shares of ScanSource by 40.6% during the 4th quarter. LSV Asset Management now owns 847,863 shares of the industrial products company's stock valued at $33,118,000 after purchasing an additional 244,903 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in ScanSource by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 562,109 shares of the industrial products company's stock valued at $21,960,000 after purchasing an additional 13,318 shares during the last quarter. Institutional investors own 97.91% of the company's stock.

Analyst Upgrades and Downgrades

SCSC has been the topic of several research reports. Weiss Ratings restated a "hold (c+)" rating on shares of ScanSource in a research report on Wednesday, August 26th. Northcoast Research downgraded ScanSource from a "buy" rating to a "neutral" rating in a report on Monday, August 17th. Zacks Research raised ScanSource from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 24th. Finally, Wall Street Zen upgraded ScanSource from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 29th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, ScanSource has an average rating of "Moderate Buy" and a consensus price target of $43.00.

ScanSource Price Performance

NASDAQ SCSC opened at $58.19 on Friday. ScanSource, Inc. has a 52-week low of $33.76 and a 52-week high of $66.78. The firm's 50 day moving average price is $55.15 and its 200-day moving average price is $46.54. The company has a market cap of $1.17 billion, a PE ratio of 15.90, a P/E/G ratio of 0.81 and a beta of 1.24. 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 (NASDAQ:SCSC - Get Free Report) last posted its quarterly earnings results 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 during the quarter, compared to analysts' expectations of $814.35 million. ScanSource had a net margin of 2.44% and a return on equity of 10.10%. The business's quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter last year, the company posted $1.02 earnings per share. Sell-side analysts forecast that ScanSource, Inc. will post 4.56 EPS for the current fiscal year.

Insider Transactions at ScanSource

In related news, CFO Stephen Jones sold 10,000 shares of the company's stock in a transaction dated 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 owned 87,421 shares of the company's stock, valued at approximately $4,962,015.96. This represents a 10.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Brandy Ford sold 5,293 shares of the company's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $57.43, for a total transaction of $303,976.99. Following the completion of the transaction, the chief accounting officer owned 9,907 shares in the company, valued at approximately $568,959.01. This represents a 34.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 3.18% of the company's stock.

ScanSource 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.

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