ScanSource (NASDAQ:SCSC) Cut to Buy at Wall Street Zen

Key Points

• ScanSource has been downgraded by Wall Street Zen from a "strong-buy" to a "buy" rating, while Zacks Research upgraded it to a "strong-buy" earlier this month.
• The company reported strong quarterly earnings of $1.02 EPS, surpassing the consensus estimate of $0.91, and revenue of $812.89 million, beating expectations.
• Insider transactions indicate a significant sell-off, with CEO Michael L. Baur reducing his stake by 19.15% and total insider sales reaching approximately $6.9 million over the last ninety days.

ScanSource (NASDAQ:SCSC - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

Several other analysts have also recently weighed in on SCSC. Zacks Research raised ScanSource from a "hold" rating to a "strong-buy" rating in a report on Monday, August 25th. Barclays started coverage on ScanSource in a report on Tuesday. They set an "equal weight" rating and a $43.00 price objective for the company. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of ScanSource in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $42.50.

ScanSource Stock Performance

ScanSource stock opened at $40.45 on Friday. The stock has a 50-day simple moving average of $43.22 and a 200 day simple moving average of $39.85. The company has a quick ratio of 1.30, a current ratio of 2.01 and a debt-to-equity ratio of 0.14. ScanSource has a 12-month low of $28.75 and a 12-month high of $53.90. The stock has a market capitalization of $885.45 million, a price-to-earnings ratio of 13.44, a P/E/G ratio of 0.70 and a beta of 1.36.

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

Insider Transactions at ScanSource

In related news, CEO Michael L. Baur sold 47,969 shares of the business's stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $44.34, for a total value of $2,126,945.46. Following the completion of the transaction, the chief executive officer directly owned 202,512 shares in the company, valued at approximately $8,979,382.08. The trade was a 19.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Rachel Hayden sold 752 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $43.57, for a total value of $32,764.64. Following the completion of the transaction, the executive vice president owned 14,918 shares of the company's stock, valued at $649,977.26. This represents a 4.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 153,677 shares of company stock valued at $6,876,030. 4.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ScanSource

A number of large investors have recently bought and sold shares of the company. Nisa Investment Advisors LLC boosted its position in ScanSource by 2.6% during the 2nd quarter. Nisa Investment Advisors LLC now owns 10,145 shares of the industrial products company's stock worth $424,000 after acquiring an additional 259 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in ScanSource by 2.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,859 shares of the industrial products company's stock worth $471,000 after acquiring an additional 295 shares during the last quarter. GAMMA Investing LLC boosted its position in ScanSource by 25.5% during the 1st quarter. GAMMA Investing LLC now owns 1,944 shares of the industrial products company's stock worth $66,000 after acquiring an additional 395 shares during the last quarter. State of Alaska Department of Revenue boosted its position in ScanSource by 3.3% during the 2nd quarter. State of Alaska Department of Revenue now owns 12,357 shares of the industrial products company's stock worth $516,000 after acquiring an additional 395 shares during the last quarter. Finally, SummerHaven Investment Management LLC boosted its position in ScanSource by 2.4% during the 2nd quarter. SummerHaven Investment Management LLC now owns 18,852 shares of the industrial products company's stock worth $788,000 after acquiring an additional 443 shares during the last quarter. Institutional investors and hedge funds own 97.91% of the company's stock.

ScanSource Company 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.

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