ScanSource (NASDAQ:SCSC) Share Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• ScanSource shares moved above their 200-day moving average, trading as high as $45.55 and last changing hands around $43.39 after a 6.0% gain.
• The company beat fiscal Q1 earnings and revenue estimates, reporting $0.94 EPS on $758.59 million in revenue, with revenue up 8.8% year over year.
• Wall Street remains cautious on the stock, with a consensus “Hold” rating and an average price target of $43.00, while recent insider and institutional activity showed mixed signals.

ScanSource, Inc. (NASDAQ:SCSC - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $39.47 and traded as high as $45.55. ScanSource shares last traded at $43.3870, with a volume of 451,767 shares trading hands.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on SCSC. Zacks Research raised shares of ScanSource from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 7th. Wall Street Zen downgraded shares of ScanSource from a "buy" rating to a "hold" rating in a research note on Saturday, January 17th. Three equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, ScanSource currently has a consensus rating of "Hold" and an average price target of $43.00.

ScanSource Stock Up 6.0%

The company has a quick ratio of 1.22, a current ratio of 1.96 and a debt-to-equity ratio of 0.11. The stock has a market cap of $931.95 million, a price-to-earnings ratio of 13.31, a PEG ratio of 0.69 and a beta of 1.28. The business's fifty day moving average is $37.77 and its two-hundred day moving average is $39.47.

ScanSource (NASDAQ:SCSC - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The industrial products company reported $0.94 earnings per share for the quarter, beating analysts' consensus estimates of $0.91 by $0.03. The firm had revenue of $758.59 million during the quarter, compared to analysts' expectations of $738.55 million. ScanSource had a net margin of 2.44% and a return on equity of 9.35%. The business's quarterly revenue was up 8.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.86 earnings per share. Equities analysts forecast that ScanSource, Inc. will post 3.94 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Michael L. Baur sold 21,173 shares of ScanSource stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $35.76, for a total value of $757,146.48. Following the completion of the transaction, the chief executive officer owned 161,339 shares in the company, valued at $5,769,482.64. The trade was a 11.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Charles Alexander Mathis purchased 6,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 11th. The stock was purchased at an average price of $35.20 per share, with a total value of $211,200.00. Following the purchase, the director directly owned 24,793 shares of the company's stock, valued at $872,713.60. The trade was a 31.93% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 3.18% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SCSC. Amundi lifted its stake in ScanSource by 35.1% in the first quarter. Amundi now owns 26,464 shares of the industrial products company's stock worth $836,000 after acquiring an additional 6,880 shares during the last quarter. AQR Capital Management LLC lifted its stake in ScanSource by 3.8% in the first quarter. AQR Capital Management LLC now owns 128,574 shares of the industrial products company's stock worth $4,373,000 after acquiring an additional 4,693 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in ScanSource by 2.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,859 shares of the industrial products company's stock worth $471,000 after acquiring an additional 295 shares during the last quarter. Millennium Management LLC lifted its stake in ScanSource by 8.4% in the first quarter. Millennium Management LLC now owns 259,808 shares of the industrial products company's stock worth $8,836,000 after acquiring an additional 20,086 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in ScanSource by 35.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 61,513 shares of the industrial products company's stock worth $2,092,000 after acquiring an additional 16,044 shares during the last quarter. Hedge funds and other institutional investors 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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