Vanguard Group Inc. Reduces Stock Position in ScanSource, Inc. $SCSC

Key Points

• Vanguard Group Inc. reduced its stake in ScanSource, Inc. by 1.8%, holding approximately 2.97 million shares valued at $100.99 million as of the end of the most recent quarter.
• ScanSource's stock recently opened at $44.63 and reported earnings of $1.02 EPS, exceeding estimates while showing an 8.9% year-over-year revenue increase.
• Wall Street analysts represent a growing confidence in ScanSource, upgrading its rating from "hold" to "buy" and setting a price target of $42.00.

Vanguard Group Inc. cut its holdings in ScanSource, Inc. (NASDAQ:SCSC - Free Report) by 1.8% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,969,463 shares of the industrial products company's stock after selling 53,879 shares during the period. Vanguard Group Inc. owned about 12.66% of ScanSource worth $100,991,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. SummerHaven Investment Management LLC grew its position in ScanSource by 1.9% in the first quarter. SummerHaven Investment Management LLC now owns 18,409 shares of the industrial products company's stock worth $626,000 after acquiring an additional 344 shares in the last quarter. GAMMA Investing LLC lifted its stake in shares of ScanSource by 25.5% in the 1st quarter. GAMMA Investing LLC now owns 1,944 shares of the industrial products company's stock valued at $66,000 after purchasing an additional 395 shares during the last quarter. Versant Capital Management Inc boosted its holdings in shares of ScanSource by 88.4% in the 1st quarter. Versant Capital Management Inc now owns 863 shares of the industrial products company's stock worth $29,000 after purchasing an additional 405 shares during the period. MetLife Investment Management LLC boosted its holdings in shares of ScanSource by 5.1% in the 4th quarter. MetLife Investment Management LLC now owns 14,956 shares of the industrial products company's stock worth $710,000 after purchasing an additional 721 shares during the period. Finally, Quarry LP increased its position in shares of ScanSource by 948.7% during the 4th quarter. Quarry LP now owns 797 shares of the industrial products company's stock valued at $38,000 after purchasing an additional 721 shares during the last quarter. 97.91% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts recently issued reports on SCSC shares. Northcoast Research upgraded ScanSource from a "neutral" rating to a "buy" rating and set a $42.00 price target for the company in a research report on Tuesday, May 6th. Wall Street Zen raised shares of ScanSource from a "hold" rating to a "buy" rating in a research note on Saturday, July 12th. One equities research analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $42.00.

ScanSource Trading Down 0.7%

Shares of NASDAQ SCSC traded down $0.30 during trading hours on Monday, reaching $44.33. The stock had a trading volume of 305,534 shares, compared to its average volume of 301,261. ScanSource, Inc. has a 52-week low of $28.75 and a 52-week high of $53.90. The firm has a market cap of $970.38 million, a price-to-earnings ratio of 12.50, a P/E/G ratio of 1.12 and a beta of 1.41. The business's fifty day moving average price is $41.49 and its two-hundred day moving average price is $38.21. The company has a current ratio of 2.01, a quick ratio of 1.30 and a debt-to-equity ratio of 0.14.

ScanSource (NASDAQ:SCSC - Get Free Report) last posted its quarterly earnings results on Thursday, August 21st. The industrial products company reported $1.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.91 by $0.11. The business had revenue of $812.89 million for the quarter, compared to the consensus estimate of $776.21 million. ScanSource had a return on equity of 9.38% and a net margin of 2.35%.The business's revenue was up 8.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.80 EPS. ScanSource has set its FY 2026 guidance at EPS. Analysts expect that ScanSource, Inc. will post 3.33 EPS for the current fiscal year.

Insider Transactions at ScanSource

In related news, EVP Rachel Hayden sold 6,738 shares of the business's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $41.27, for a total transaction of $278,077.26. Following the transaction, the executive vice president directly owned 13,174 shares in the company, valued at $543,690.98. The trade was a 33.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 4.20% of the company's stock.

ScanSource Profile

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.