Zacks Research Upgrades ScanSource (NASDAQ:SCSC) to Strong-Buy

Key Points

• ScanSource (NASDAQ:SCSC) has been upgraded from "hold" to a "strong-buy" rating by Zacks Research, reflecting increased confidence in the company's performance.
• The company's latest earnings report showed $1.02 earnings per share, surpassing analysts' estimates by 11 cents, along with an 8.9% year-over-year revenue increase.
• Currently, 97.91% of ScanSource's stock is owned by institutional investors and hedge funds, indicating strong support from major financial players.

ScanSource (NASDAQ:SCSC - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Monday,Zacks.com reports.

Several other research analysts have also recently weighed in on SCSC. Northcoast Research upgraded shares of ScanSource from a "neutral" rating to a "buy" rating and set a $42.00 price objective on the stock in a research report on Tuesday, May 6th. Wall Street Zen upgraded shares of ScanSource from a "hold" rating to a "buy" rating in a research report on Saturday, July 12th. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Strong Buy" and a consensus price target of $42.00.

ScanSource Price Performance

Shares of SCSC stock traded down $0.52 during trading on Monday, hitting $43.65. The company had a trading volume of 201,994 shares, compared to its average volume of 324,341. The company has a quick ratio of 1.30, a current ratio of 2.01 and a debt-to-equity ratio of 0.14. The stock's 50-day moving average is $41.77 and its two-hundred day moving average is $38.37. The stock has a market capitalization of $955.50 million, a price-to-earnings ratio of 14.50, a price-to-earnings-growth ratio of 0.73 and a beta of 1.41. ScanSource has a 52 week low of $28.75 and a 52 week high of $53.90.

ScanSource (NASDAQ:SCSC - Get Free Report) last posted its quarterly earnings data on Thursday, August 21st. The industrial products company reported $1.02 earnings per share for the quarter, topping the consensus estimate of $0.91 by $0.11. The company had revenue of $812.89 million for the quarter, compared to analysts' expectations of $776.21 million. ScanSource had a net margin of 2.35% and a return on equity of 9.38%. ScanSource's revenue for the quarter was up 8.9% compared to the same quarter last year. During the same period in the prior year, the business earned $0.80 earnings per share. ScanSource has set its FY 2026 guidance at EPS. As a group, analysts predict that ScanSource will post 3.33 EPS for the current fiscal year.

Insider Transactions at ScanSource

In other ScanSource news, EVP Rachel Hayden sold 833 shares of the company's stock in a transaction that occurred on Friday, August 29th. The stock was sold at an average price of $44.36, for a total value of $36,951.88. Following the completion of the sale, the executive vice president owned 10,855 shares of the company's stock, valued at $481,527.80. This represents a 7.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 9,663 shares of company stock valued at $407,084 over the last ninety days. 4.20% of the stock is owned by corporate insiders.

Institutional Trading of ScanSource

Institutional investors have recently made changes to their positions in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of ScanSource by 18.0% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,469 shares of the industrial products company's stock valued at $2,158,000 after purchasing an additional 6,936 shares during the period. Principal Financial Group Inc. boosted its stake in shares of ScanSource by 1.2% during the first quarter. Principal Financial Group Inc. now owns 117,804 shares of the industrial products company's stock valued at $4,007,000 after purchasing an additional 1,433 shares during the period. Deutsche Bank AG boosted its stake in shares of ScanSource by 47.8% during the fourth quarter. Deutsche Bank AG now owns 20,510 shares of the industrial products company's stock valued at $973,000 after purchasing an additional 6,629 shares during the period. Susquehanna International Group LLP boosted its stake in shares of ScanSource by 59.1% during the fourth quarter. Susquehanna International Group LLP now owns 46,837 shares of the industrial products company's stock valued at $2,222,000 after purchasing an additional 17,406 shares during the period. Finally, Picton Mahoney Asset Management boosted its stake in shares of ScanSource by 414.4% during the first quarter. Picton Mahoney Asset Management now owns 11,553 shares of the industrial products company's stock valued at $392,000 after purchasing an additional 9,307 shares during the period. Hedge funds and other institutional investors own 97.91% of the company's stock.

ScanSource Company Profile

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.