Zacks Research Downgrades ScanSource (NASDAQ:SCSC) to Strong Sell

ScanSource (NASDAQ:SCSC) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities research analysts also recently weighed in on SCSC. Wall Street Zen downgraded ScanSource from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ScanSource in a research report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $42.50.

ScanSource Trading Down 4.5%

Shares of NASDAQ:SCSC traded down $1.66 during trading on Monday, reaching $35.05. The stock had a trading volume of 83,118 shares, compared to its average volume of 221,572. The stock has a market cap of $752.87 million, a P/E ratio of 10.79, a PEG ratio of 0.64 and a beta of 1.28. The company has a quick ratio of 1.22, a current ratio of 1.96 and a debt-to-equity ratio of 0.11. The business has a fifty day moving average price of $40.73 and a 200-day moving average price of $41.72. ScanSource has a fifty-two week low of $28.75 and a fifty-two week high of $46.25.

ScanSource (NASDAQ:SCSC) last released its quarterly earnings results on Thursday, February 5th. The industrial products company reported $0.80 earnings per share for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.20). ScanSource had a net margin of 2.44% and a return on equity of 9.35%. The firm had revenue of $766.51 million for the quarter, compared to analyst estimates of $782.46 million. During the same period in the previous year, the business posted $0.85 earnings per share. ScanSource’s revenue for the quarter was up 2.5% on a year-over-year basis. As a group, analysts anticipate that ScanSource will post 3.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Stephen Jones sold 5,020 shares of the company’s stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $42.30, for a total value of $212,346.00. Following the transaction, the chief financial officer owned 83,326 shares of the company’s stock, valued at approximately $3,524,689.80. This represents a 5.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Michael L. Baur sold 9,459 shares of the business’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $41.42, for a total value of $391,791.78. Following the completion of the sale, the chief executive officer directly owned 182,512 shares of the company’s stock, valued at approximately $7,559,647.04. This trade represents a 4.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,020 shares of company stock worth $1,035,669 in the last three months. Insiders own 3.18% of the company’s stock.

Hedge Funds Weigh In On ScanSource

Several institutional investors and hedge funds have recently bought and sold shares of SCSC. Y Intercept Hong Kong Ltd bought a new position in ScanSource during the third quarter valued at $611,000. New York State Common Retirement Fund grew its stake in ScanSource by 326.9% during the 3rd quarter. New York State Common Retirement Fund now owns 36,696 shares of the industrial products company’s stock worth $1,614,000 after buying an additional 28,100 shares during the last quarter. Envestnet Asset Management Inc. raised its holdings in shares of ScanSource by 90.4% in the second quarter. Envestnet Asset Management Inc. now owns 14,151 shares of the industrial products company’s stock worth $592,000 after buying an additional 6,720 shares during the last quarter. WINTON GROUP Ltd acquired a new stake in ScanSource during the 2nd quarter valued at approximately $2,384,000. Finally, American Century Companies Inc. grew its holdings in ScanSource by 4.4% during the second quarter. American Century Companies Inc. now owns 854,624 shares of the industrial products company’s stock worth $35,732,000 after acquiring an additional 36,161 shares during the period. 97.91% of the stock is currently owned by hedge funds and other institutional investors.

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.