ScanSource (NASDAQ:SCSC) Shares Gap Down Following Analyst Downgrade

Key Points

• ScanSource shares fell after Northcoast Research downgraded the stock from “Buy” to “Neutral,” opening at $50.54 versus the prior close of $53.19.
• Analyst sentiment remains cautious overall: four analysts rate ScanSource a “Hold,” with an average price target of $43.00, below its recent trading level.
• Institutional investors own approximately 97.91% of ScanSource’s outstanding shares, while several funds recently initiated or increased positions.

ScanSource, Inc. (NASDAQ:SCSC - Get Free Report)'s share price gapped down prior to trading on Monday after Northcoast Research downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $53.19, but opened at $50.54. ScanSource shares last traded at $50.2210, with a volume of 15,693 shares changing hands.

A number of other equities analysts have also recently issued reports on SCSC. Wall Street Zen upgraded ScanSource from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings raised ScanSource from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, May 29th. Four analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $43.00.

Institutional Trading of ScanSource

Several hedge funds have recently added to or reduced their stakes in the business. Canada Pension Plan Investment Board bought a new position in ScanSource during the second quarter worth about $25,000. Royal Bank of Canada increased its holdings in shares of ScanSource by 165.0% in the fourth quarter. Royal Bank of Canada now owns 1,876 shares of the industrial products company's stock worth $73,000 after acquiring an additional 1,168 shares in the last quarter. Osaic Holdings Inc. increased its holdings in shares of ScanSource by 400.5% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company's stock worth $87,000 after acquiring an additional 1,670 shares in the last quarter. Freestone Grove Partners LP acquired a new stake in shares of ScanSource during the second quarter worth about $119,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of ScanSource during the second quarter worth about $134,000. Institutional investors and hedge funds own 97.91% of the company's stock.

ScanSource Price Performance

The company has a current ratio of 1.86, a quick ratio of 1.20 and a debt-to-equity ratio of 0.11. The firm has a market cap of $1.03 billion, a P/E ratio of 15.34, a PEG ratio of 0.83 and a beta of 1.28. The company has a fifty day moving average price of $52.72 and a two-hundred day moving average price of $44.18.

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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