ScanSource (NASDAQ:SCSC) Shares Pass Above 200 Day Moving Average - Should You Sell?

Key Points

• Technical: ScanSource's stock crossed above its 200-day moving average (200-day = $39.51), trading as high as $40.62 and last at $40.43 on volume of 154,847 shares, a short-term bullish signal.
• Fundamentals: Q4 results missed estimates with EPS $0.80 versus $1.00 and revenue $766.5M vs. $782.5M, though the shares trade at a modest valuation (P/E 12.4, PEG 0.68) and revenue was up 2.5% year-over-year.
• Sentiment & ownership: Analysts' consensus is a "Hold" with an average price target of $42.50; insiders showed mixed activity (CEO sold shares while a director bought), and institutions own about 97.9% of the stock.

ScanSource, Inc. (NASDAQ:SCSC - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $39.51 and traded as high as $40.62. ScanSource shares last traded at $40.43, with a volume of 154,847 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SCSC. Zacks Research raised ScanSource from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 7th. Weiss Ratings reissued a "hold (c)" rating on shares of ScanSource in a research note on Monday, December 29th. Finally, Wall Street Zen cut ScanSource from a "buy" rating to a "hold" rating in a research note on Saturday, January 17th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $42.50.

ScanSource Stock Up 1.2%

The company has a debt-to-equity ratio of 0.11, a current ratio of 1.96 and a quick ratio of 1.22. The company has a market capitalization of $868.44 million, a P/E ratio of 12.40, a PEG ratio of 0.68 and a beta of 1.25. The company has a 50 day moving average of $37.10 and a 200-day moving average of $39.51.

ScanSource (NASDAQ:SCSC - Get Free Report) last posted its earnings results on Thursday, February 5th. The industrial products company reported $0.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.00 by ($0.20). The business had revenue of $766.51 million during the quarter, compared to the consensus estimate of $782.46 million. ScanSource had a return on equity of 9.35% and a net margin of 2.44%.The firm's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.85 earnings per share. As a group, equities analysts anticipate that ScanSource, Inc. will post 3.94 EPS for the current year.

Insider Activity at ScanSource

In other ScanSource news, CEO Michael L. Baur sold 3,827 shares of ScanSource stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $35.89, for a total transaction of $137,351.03. Following the sale, the chief executive officer directly owned 157,512 shares of the company's stock, valued at approximately $5,653,105.68. The trade was a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Charles Alexander Mathis acquired 6,000 shares of the business's stock in a transaction on Wednesday, February 11th. The shares were purchased at an average cost of $35.20 per share, for a total transaction of $211,200.00. Following the completion of the transaction, the director owned 24,793 shares in the company, valued at approximately $872,713.60. This represents a 31.93% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 3.18% of the company's stock.

Institutional Trading of ScanSource

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in ScanSource by 2.9% during the 4th quarter. Vanguard Group Inc. now owns 2,827,007 shares of the industrial products company's stock valued at $110,423,000 after acquiring an additional 78,993 shares in the last quarter. Wasatch Advisors LP boosted its position in 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. 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 valued at $33,118,000 after acquiring an additional 244,903 shares in the last quarter. 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 valued at $21,960,000 after acquiring an additional 13,318 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in ScanSource by 18.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 538,021 shares of the industrial products company's stock valued at $21,015,000 after acquiring an additional 81,909 shares in the last quarter. 97.91% of the stock is owned by institutional investors.

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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