ScanSource (NASDAQ:SCSC) Upgraded by Zacks Research to "Strong-Buy" Rating

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 stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Monday, August 25th,Zacks.com reports.

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

ScanSource Stock Down 1.2%

ScanSource stock traded down $0.52 during mid-day trading on Monday, hitting $43.65. The company had a trading volume of 201,994 shares, compared to its average volume of 320,041. The stock has a market cap of $955.50 million, a price-to-earnings ratio of 14.50, a PEG ratio of 0.73 and a beta of 1.43. ScanSource has a 1 year low of $28.75 and a 1 year high of $53.90. 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 business has a fifty day moving average of $41.81 and a 200 day moving average of $38.43.

ScanSource (NASDAQ:SCSC - Get Free Report) last announced its quarterly earnings results on Thursday, August 21st. The industrial products company reported $1.02 EPS for the quarter, beating the consensus estimate of $0.91 by $0.11. The company had revenue of $812.89 million for the quarter, compared to analyst estimates of $776.21 million. ScanSource had a net margin of 2.35% and a return on equity of 9.38%. The firm's revenue was up 8.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.80 earnings per share. ScanSource has set its FY 2026 guidance at EPS. On average, sell-side analysts expect that ScanSource will post 3.33 earnings per share for the current fiscal year.

Insider Buying and Selling at ScanSource

In related news, EVP Rachel Hayden sold 833 shares of the stock in a transaction on Friday, August 29th. The stock was sold at an average price of $44.36, for a total transaction of $36,951.88. Following the completion of the sale, the executive vice president directly owned 10,855 shares of the company's stock, valued at $481,527.80. This trade represents a 7.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders sold 9,663 shares of company stock worth $407,084 over the last three months. 4.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On ScanSource

Several hedge funds have recently modified their holdings of the stock. Castlekeep Investment Advisors LLC acquired a new stake in ScanSource in the fourth quarter valued at $78,694,000. Pzena Investment Management LLC lifted its holdings in ScanSource by 3.6% in the second quarter. Pzena Investment Management LLC now owns 975,578 shares of the industrial products company's stock valued at $40,789,000 after acquiring an additional 33,510 shares during the period. American Century Companies Inc. lifted its holdings in ScanSource by 4.4% in the second quarter. American Century Companies Inc. now owns 854,624 shares of the industrial products company's stock valued at $35,732,000 after acquiring an additional 36,161 shares during the period. Wasatch Advisors LP lifted its holdings in ScanSource by 0.6% in the second quarter. Wasatch Advisors LP now owns 844,949 shares of the industrial products company's stock valued at $35,327,000 after acquiring an additional 4,798 shares during the period. Finally, Jones Financial Companies Lllp acquired a new stake in ScanSource in the first quarter valued at $22,848,000. 97.91% of the stock is owned by institutional investors and hedge funds.

About ScanSource

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.