ScanSource (NASDAQ:SCSC) Stock Price Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• ScanSource shares moved above their 200-day moving average in Wednesday trading, with the stock reaching as high as $51.83 and last trading around $51.63.
• Recent analyst sentiment has improved slightly, with multiple firms issuing upgrades; however, the overall consensus remains Hold with an average price target of $43.00.
• The company’s latest earnings beat expectations, reporting $0.94 EPS versus $0.91 expected and revenue of $758.59 million, up 8.8% year over year.

Shares of ScanSource, Inc. (NASDAQ:SCSC - Get Free Report) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $41.40 and traded as high as $51.83. ScanSource shares last traded at $51.63, with a volume of 181,710 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SCSC. Zacks Research upgraded ScanSource from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 7th. Wall Street Zen raised shares of ScanSource from a "hold" rating to a "buy" rating in a research note on Saturday, June 6th. Finally, Weiss Ratings upgraded shares of ScanSource from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, May 29th. Three analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $43.00.

ScanSource Stock Up 0.2%

The firm's 50-day simple moving average is $46.81 and its 200 day simple moving average is $41.40. 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 stock has a market capitalization of $1.05 billion, a P/E ratio of 15.65, a PEG ratio of 0.80 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, beating analysts' consensus estimates of $0.91 by $0.03. The business 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%.ScanSource's quarterly revenue was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.86 earnings per share. As a group, research analysts expect that ScanSource, Inc. will post 3.9 EPS for the current year.

Hedge Funds Weigh In On ScanSource

A number of institutional investors have recently bought and sold shares of SCSC. Amundi lifted its stake in shares of ScanSource by 35.1% during the 1st quarter. Amundi now owns 26,464 shares of the industrial products company's stock worth $836,000 after buying an additional 6,880 shares during the last quarter. AQR Capital Management LLC raised its stake in ScanSource by 3.8% in the 1st quarter. AQR Capital Management LLC now owns 128,574 shares of the industrial products company's stock worth $4,373,000 after purchasing an additional 4,693 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in ScanSource by 2.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,859 shares of the industrial products company's stock valued at $471,000 after purchasing an additional 295 shares during the period. Millennium Management LLC boosted its holdings in ScanSource by 8.4% in the 1st quarter. Millennium Management LLC now owns 259,808 shares of the industrial products company's stock valued at $8,836,000 after purchasing an additional 20,086 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of ScanSource by 35.3% during the 1st 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 purchasing an additional 16,044 shares in the last quarter. Institutional investors and hedge funds own 97.91% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.