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

Key Points

• Wall Street Zen downgraded ScanSource from a “buy” to a “hold” rating, adding to a broader cautious stance from analysts covering the stock.
• ScanSource’s overall analyst consensus is now a Hold, with MarketBeat noting an average target price of $43.00.
• The company recently posted better-than-expected quarterly results, earning $0.94 per share on $758.59 million in revenue, while revenue rose 8.8% year over year.

ScanSource (NASDAQ:SCSC - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

A number of other brokerages also recently commented on SCSC. Weiss Ratings raised ScanSource from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, May 29th. Zacks Research raised ScanSource from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 7th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat, ScanSource currently has an average rating of "Hold" and an average target price of $43.00.

ScanSource Stock Performance

Shares of SCSC opened at $54.79 on Friday. ScanSource has a 1 year low of $33.76 and a 1 year high of $54.92. The company's 50 day simple moving average is $48.46 and its 200 day simple moving average is $42.07. The company has a market capitalization of $1.11 billion, a price-to-earnings ratio of 16.60, a PEG ratio of 0.85 and a beta of 1.28. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.20 and a current ratio of 1.86.

ScanSource (NASDAQ:SCSC - Get Free Report) last released its earnings results on Thursday, May 7th. The industrial products company reported $0.94 EPS for the quarter, topping the consensus estimate of $0.91 by $0.03. ScanSource had a net margin of 2.38% and a return on equity of 9.35%. The firm had revenue of $758.59 million during the quarter, compared to analysts' expectations of $738.55 million. During the same period in the previous year, the company earned $0.86 EPS. ScanSource's revenue for the quarter was up 8.8% on a year-over-year basis. On average, sell-side analysts predict that ScanSource will post 3.9 EPS for the current year.

Hedge Funds Weigh In On ScanSource

Hedge funds have recently made changes to their positions in the stock. Canada Pension Plan Investment Board acquired a new stake in shares of ScanSource during the 2nd quarter worth $25,000. Royal Bank of Canada raised its position in shares of ScanSource by 165.0% in the 4th quarter. Royal Bank of Canada now owns 1,876 shares of the industrial products company's stock worth $73,000 after buying an additional 1,168 shares during the period. Osaic Holdings Inc. boosted its holdings in ScanSource by 400.5% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company's stock valued at $87,000 after acquiring an additional 1,670 shares during the last quarter. Tower Research Capital LLC TRC boosted its holdings in ScanSource by 672.0% in the second quarter. Tower Research Capital LLC TRC now owns 4,632 shares of the industrial products company's stock valued at $194,000 after acquiring an additional 4,032 shares during the last quarter. Finally, Harbor Capital Advisors Inc. grew its position in ScanSource by 12.7% during the fourth quarter. Harbor Capital Advisors Inc. now owns 5,233 shares of the industrial products company's stock valued at $204,000 after acquiring an additional 590 shares during the period. Institutional investors and hedge funds own 97.91% of the company's stock.

ScanSource Company 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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