ScanSource (NASDAQ:SCSC) Given Hold (C+) Rating at Weiss Ratings

Key Points

• ScanSource's stock received a "hold (C+)" rating from Weiss Ratings, while other analysts have varying ratings including a "strong-buy" and a "buy." The overall consensus rating is a "Moderate Buy" with an average target price of $42.50.
• In its latest earnings report, ScanSource exceeded expectations by reporting earnings of $1.02 per share, compared to the estimated $0.91, along with revenue of $812.89 million for the quarter, marking an 8.9% increase year-over-year.
• Insider trading activity saw CEO Michael L. Baur sell 47,969 shares valued at approximately $2.13 million, reducing his stake by 19.15%, while insiders have collectively sold around 153,677 shares over the past ninety days.

ScanSource (NASDAQ:SCSC - Get Free Report)'s stock had its "hold (c+)" rating reissued by stock analysts at Weiss Ratings in a note issued to investors on Wednesday,Weiss Ratings reports.

A number of other research analysts also recently weighed in on the stock. Zacks Research raised shares of ScanSource from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 25th. Wall Street Zen downgraded shares of ScanSource from a "strong-buy" rating to a "buy" rating in a research report on Friday, October 3rd. Finally, Barclays initiated coverage on shares of ScanSource in a research report on Tuesday. They issued an "equal weight" rating and a $43.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $42.50.

ScanSource Stock Up 1.4%

ScanSource stock opened at $42.10 on Wednesday. The company has a market cap of $921.36 million, a P/E ratio of 13.99, a price-to-earnings-growth ratio of 0.70 and a beta of 1.36. ScanSource has a 1-year low of $28.75 and a 1-year high of $53.90. The company has a fifty day simple moving average of $43.11 and a 200 day simple moving average of $39.79. 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 released its earnings results on Thursday, August 21st. The industrial products company reported $1.02 earnings per share for the quarter, beating analysts' consensus estimates of $0.91 by $0.11. The business had revenue of $812.89 million during the quarter, compared to the consensus estimate of $776.21 million. ScanSource had a net margin of 2.35% and a return on equity of 9.38%. The firm's revenue for the quarter was up 8.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.80 earnings per share. ScanSource has set its FY 2026 guidance at EPS. Research analysts anticipate that ScanSource will post 3.33 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Michael L. Baur sold 47,969 shares of ScanSource stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $44.34, for a total transaction of $2,126,945.46. Following the completion of the sale, the chief executive officer 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 sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Rachel Hayden sold 752 shares of ScanSource stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $43.57, for a total transaction of $32,764.64. Following the sale, the executive vice president directly owned 14,918 shares of the company's stock, valued at $649,977.26. The trade was a 4.80% 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 ninety days. 4.20% of the stock is currently owned by insiders.

Institutional Trading of ScanSource

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Osaic Holdings Inc. boosted its holdings in shares of ScanSource by 400.5% during the 2nd quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company's stock worth $87,000 after buying an additional 1,670 shares during the period. Public Sector Pension Investment Board raised its stake in ScanSource by 3.4% in the 2nd quarter. Public Sector Pension Investment Board now owns 70,843 shares of the industrial products company's stock worth $2,962,000 after purchasing an additional 2,353 shares in the last quarter. Tower Research Capital LLC TRC raised its stake in ScanSource by 672.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,632 shares of the industrial products company's stock worth $194,000 after purchasing an additional 4,032 shares in the last quarter. Wasatch Advisors LP raised its stake in ScanSource by 0.6% in the 2nd quarter. Wasatch Advisors LP now owns 844,949 shares of the industrial products company's stock worth $35,327,000 after purchasing an additional 4,798 shares in the last quarter. Finally, Lazard Asset Management LLC raised its stake in ScanSource by 1.3% in the 2nd quarter. Lazard Asset Management LLC now owns 43,016 shares of the industrial products company's stock worth $1,797,000 after purchasing an additional 567 shares in the last quarter. Institutional investors own 97.91% of the company's stock.

About ScanSource

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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