ScanSource (NASDAQ:SCSC) Downgraded by Wall Street Zen to Buy

Key Points

• ScanSource has been downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating, while Zacks Research upgraded it to "strong-buy" recently.
• The company's stock performance shows a recent trading price of $44.11, with a market capitalization of approximately $965.57 million.
• Insider transactions reveal that CEO Michael L. Baur sold 47,969 shares for over $2.1 million, indicating a significant decrease in his ownership share.

ScanSource (NASDAQ:SCSC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Friday.

Several other equities analysts have also recently commented on SCSC. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of ScanSource in a report on Saturday, September 27th. Zacks Research upgraded ScanSource from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 25th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $42.00.

ScanSource Stock Performance

Shares of SCSC stock traded up $0.30 during trading hours on Friday, reaching $44.11. 158,568 shares of the company's stock were exchanged, compared to its average volume of 247,654. The stock has a market capitalization of $965.57 million, a P/E ratio of 14.65, a P/E/G ratio of 0.74 and a beta of 1.36. ScanSource has a fifty-two week low of $28.75 and a fifty-two week high of $53.90. The business has a fifty day moving average price of $43.03 and a 200-day moving average price of $39.67. 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 (NASDAQ:SCSC - Get Free Report) last released its earnings results on Thursday, August 21st. The industrial products company reported $1.02 EPS for the quarter, beating 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 net margin of 2.35% and a return on equity of 9.38%. The business's quarterly revenue was up 8.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.80 EPS. ScanSource has set its FY 2026 guidance at EPS. Analysts predict that ScanSource will post 3.33 EPS for the current fiscal year.

Insider Transactions at ScanSource

In other news, EVP Rachel Hayden sold 752 shares of the firm'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 transaction of $32,764.64. Following the completion of the sale, the executive vice president owned 14,918 shares of the company's stock, valued at approximately $649,977.26. This trade represents a 4.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Michael L. Baur sold 47,969 shares of the firm'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 transaction of $2,126,945.46. Following the sale, the chief executive officer directly owned 202,512 shares of the company's stock, valued at approximately $8,979,382.08. The trade was a 19.15% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 153,677 shares of company stock valued at $6,876,030 in the last quarter. 4.20% of the stock is currently owned by corporate insiders.

Institutional Trading of ScanSource

Hedge funds and other institutional investors have recently made changes to their positions in the business. Two Sigma Advisers LP acquired a new stake in ScanSource in the 4th quarter valued at about $256,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in ScanSource by 18.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,469 shares of the industrial products company's stock valued at $2,158,000 after acquiring an additional 6,936 shares in the last quarter. Wealth Enhancement Advisory Services LLC acquired a new stake in shares of ScanSource in the fourth quarter valued at approximately $365,000. Versant Capital Management Inc increased its holdings in shares of ScanSource by 88.4% in the first quarter. Versant Capital Management Inc now owns 863 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 405 shares in the last quarter. Finally, GAMMA Investing LLC increased its holdings in shares of ScanSource by 4,168.2% in the first quarter. GAMMA Investing LLC now owns 66,115 shares of the industrial products company's stock valued at $2,249,000 after purchasing an additional 64,566 shares in the last quarter. 97.91% of the stock is currently owned by institutional investors and hedge funds.

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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