ScanSource (NASDAQ:SCSC) Sets New 12-Month High - Should You Buy?

Key Points

• ScanSource shares reached a new 52-week high, trading as high as $58.94 and last quoted near $59.21, well above the prior close of $57.13.
• Analysts maintain a cautious outlook: all three tracked analysts rate the stock “Hold,” with an average price target of $43.00—substantially below its current price.
• The company exceeded quarterly expectations, reporting $0.94 in EPS versus $0.91 expected and $758.59 million in revenue versus $738.55 million forecast; revenue increased 8.8% year over year.

ScanSource, Inc. (NASDAQ:SCSC - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $58.94 and last traded at $59.2090, with a volume of 61644 shares traded. The stock had previously closed at $57.13.

Analysts Set New Price Targets

Several equities research analysts have commented on SCSC shares. Zacks Research upgraded ScanSource from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 7th. Weiss Ratings upgraded shares of ScanSource from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, May 29th. Finally, Wall Street Zen lowered shares of ScanSource from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $43.00.

ScanSource Price Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.20 and a current ratio of 1.86. The company has a fifty day moving average price of $51.26 and a two-hundred day moving average price of $43.32. The company has a market cap of $1.20 billion, a P/E ratio of 17.83, a PEG ratio of 0.88 and a beta of 1.28.

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

Hedge Funds Weigh In On ScanSource

Hedge funds and other institutional investors have recently made changes to their positions in the company. Teacher Retirement System of Texas lifted its position in shares of ScanSource by 333.8% in the fourth quarter. Teacher Retirement System of Texas now owns 153,041 shares of the industrial products company's stock valued at $5,978,000 after buying an additional 117,762 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of ScanSource by 2.9% during the 4th 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 during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH increased its holdings in shares of ScanSource by 65.3% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 133,593 shares of the industrial products company's stock worth $5,222,000 after acquiring an additional 52,763 shares during the last quarter. Fifth Third Bancorp raised its stake in ScanSource by 12,457.4% in the 1st quarter. Fifth Third Bancorp now owns 25,617 shares of the industrial products company's stock valued at $930,000 after acquiring an additional 25,413 shares during the period. Finally, Meeder Asset Management Inc. acquired a new stake in ScanSource during the 1st quarter valued at $1,848,000. 97.91% of the stock is owned by institutional investors.

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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