ScanSource (NASDAQ:SCSC) Sets New 12-Month High - Here's Why

Key Points

• ScanSource shares hit a new 52-week high, reaching as high as $55.15 intraday before settling around $54.24, signaling strong recent momentum in the stock.
• The company’s latest quarterly results were better than expected, with EPS of $0.94 versus consensus of $0.91 and revenue of $758.59 million topping estimates; revenue also rose 8.8% year over year.
• Analyst sentiment remains cautious despite the rally: several firms rate ScanSource Hold, and MarketBeat shows a consensus target price of $43.00, below the current share price.

Shares of ScanSource, Inc. (NASDAQ:SCSC - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $55.15 and last traded at $54.24, with a volume of 170705 shares trading hands. The stock had previously closed at $54.79.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on SCSC shares. Zacks Research raised ScanSource from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 7th. Wall Street Zen downgraded ScanSource from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, Weiss Ratings raised ScanSource from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, May 29th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $43.00.

ScanSource Stock Performance

The stock has a 50-day simple moving average of $48.67 and a 200-day simple moving average of $42.19. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.86 and a quick ratio of 1.20. The stock has a market cap of $1.10 billion, a PE ratio of 16.44, a P/E/G ratio of 0.85 and a beta of 1.28.

ScanSource (NASDAQ:SCSC - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The industrial products company reported $0.94 EPS for the quarter, topping analysts' consensus estimates of $0.91 by $0.03. The company had revenue of $758.59 million for the quarter, compared to the consensus estimate of $738.55 million. ScanSource had a return on equity of 9.35% and a net margin of 2.38%.The company's quarterly revenue was up 8.8% compared to the same quarter last year. During the same period last year, the business posted $0.86 EPS. Equities analysts predict that ScanSource, Inc. will post 3.9 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in shares of ScanSource by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 2,827,007 shares of the industrial products company's stock worth $110,423,000 after acquiring an additional 78,993 shares in the last quarter. Wasatch Advisors LP lifted its holdings in shares of ScanSource by 34.9% during the 3rd quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company's stock valued at $50,130,000 after acquiring an additional 294,624 shares in the last quarter. Pzena Investment Management LLC lifted its holdings in shares of ScanSource by 0.6% during the 1st quarter. Pzena Investment Management LLC now owns 913,239 shares of the industrial products company's stock valued at $33,151,000 after acquiring an additional 5,783 shares in the last quarter. LSV Asset Management boosted its position in ScanSource by 40.6% during the 4th quarter. LSV Asset Management now owns 847,863 shares of the industrial products company's stock worth $33,118,000 after purchasing an additional 244,903 shares during the period. Finally, Geode Capital Management LLC boosted its position in ScanSource by 2.4% during the 4th quarter. Geode Capital Management LLC now owns 562,109 shares of the industrial products company's stock worth $21,960,000 after purchasing an additional 13,318 shares during the period. 97.91% of the stock is owned by institutional investors and hedge funds.

About ScanSource

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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