ScanSource (NASDAQ:SCSC) Sees Large Volume Increase - What's Next?

Key Points

• Trading volume rose 20% to about 289,145 shares, while ScanSource traded at $56.78, little changed from its prior close.
• Analyst views were mixed, but MarketBeat’s consensus was Hold with an average price target of $51.00; Wall Street Zen and Weiss Ratings had recently upgraded their ratings.
• In its latest reported quarter, ScanSource beat earnings and revenue estimates, posting $1.46 per share and $953.11 million in revenue; sales increased 17.3% year over year.

ScanSource, Inc. (NASDAQ:SCSC - Get Free Report) saw an uptick in trading volume on Wednesday. Approximately 289,145 shares changed hands during mid-day trading, an increase of 20% from the average daily volume of 241,259 shares. The stock last traded at $56.7790 and had previously closed at $56.74.

Wall Street Analyst Weigh In

SCSC has been the topic of a number of research reports. Wall Street Zen raised shares of ScanSource from a "buy" rating to a "strong-buy" rating in a research note on Sunday, October 25th. Northcoast Research lowered ScanSource from a "buy" rating to a "neutral" rating in a research report on Monday, August 17th. Weiss Ratings upgraded ScanSource from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Barclays upped their price target on ScanSource from $43.00 to $51.00 and gave the stock an "equal weight" rating in a research note on Monday, October 12th. Finally, Zacks Research downgraded ScanSource from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 20th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $51.00.

ScanSource Stock Up 0.3%

The company's 50-day moving average price is $58.72 and its 200 day moving average price is $48.00. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.15 and a current ratio of 1.76. The stock has a market cap of $1.16 billion, a PE ratio of 15.54, a price-to-earnings-growth ratio of 0.77 and a beta of 1.28.

ScanSource (NASDAQ:SCSC - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 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 return on equity of 10.10% and a net margin of 2.44%. The business's quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.02 earnings per share. As a group, analysts forecast that ScanSource, Inc. will post 4.90 EPS for the current fiscal year.

Insider Activity

In other ScanSource news, CEO Michael Baur sold 57,359 shares of the company's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $58.04, for a total value of $3,329,116.36. Following the transaction, the chief executive officer owned 200,698 shares of the company's stock, valued at $11,648,511.92. This represents a 22.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Charles Mathis sold 3,000 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $58.00, for a total value of $174,000.00. Following the transaction, the director directly owned 25,027 shares in the company, valued at $1,451,566. The trade was a 10.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 95,632 shares of company stock valued at $5,484,582. 3.20% of the stock is currently owned by company insiders.

Institutional Trading of ScanSource

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of ScanSource in the 2nd quarter valued at about $200,140,000. Pzena Investment Management LLC acquired a new stake in shares of ScanSource during the 2nd quarter worth about $57,807,000. Bank of New York Mellon Corp purchased a new stake in ScanSource during the second quarter worth approximately $7,036,000. Empowered Funds LLC purchased a new stake in ScanSource during the second quarter worth approximately $5,517,000. Finally, Meeder Asset Management Inc. purchased a new position in ScanSource in the second quarter valued at approximately $4,859,000. Hedge funds and other institutional investors own 97.91% of the company's stock.

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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