Wall Street Zen Downgrades ScanSource (NASDAQ:SCSC) to Buy

ScanSource (NASDAQ:SCSC) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a note issued to investors on Friday.

A number of other equities analysts have also recently weighed in on SCSC. Weiss Ratings restated a “hold (c+)” rating on shares of ScanSource in a report on Saturday, September 27th. Zacks Research upgraded ScanSource from a “hold” rating to a “strong-buy” rating in a report on Monday, August 25th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $42.00.

ScanSource Stock Up 0.7%

NASDAQ SCSC opened at $44.11 on Friday. The stock has a market cap of $965.57 million, a PE ratio of 14.65, a P/E/G ratio of 0.74 and a beta of 1.36. ScanSource has a fifty-two week low of $28.75 and a fifty-two week high of $53.90. The business has a 50 day moving average price of $43.03 and a two-hundred day moving average price of $39.69. The company has a quick ratio of 1.30, a current ratio of 2.01 and a debt-to-equity ratio of 0.14.

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

Insider Buying and Selling at ScanSource

In other news, EVP Rachel Hayden sold 1,080 shares of the stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $44.69, for a total value of $48,265.20. Following the completion of the transaction, the executive vice president owned 11,688 shares of the company’s stock, valued at approximately $522,336.72. This represents a 8.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Michael L. Baur sold 102,031 shares of the stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $44.96, for a total value of $4,587,313.76. Following the completion of the transaction, the chief executive officer directly owned 227,512 shares of the company’s stock, valued at approximately $10,228,939.52. The trade was a 30.96% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 153,677 shares of company stock valued at $6,876,030. Company insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of SCSC. Canada Pension Plan Investment Board bought a new position in shares of ScanSource in the second quarter worth $25,000. Versant Capital Management Inc grew its stake in shares of ScanSource by 88.4% in the first quarter. Versant Capital Management Inc now owns 863 shares of the industrial products company’s stock worth $29,000 after purchasing an additional 405 shares in the last quarter. GAMMA Investing LLC grew its stake in shares of ScanSource by 25.5% in the first quarter. GAMMA Investing LLC now owns 1,944 shares of the industrial products company’s stock worth $66,000 after purchasing an additional 395 shares in the last quarter. Osaic Holdings Inc. grew its stake in shares of ScanSource by 400.5% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company’s stock worth $87,000 after purchasing an additional 1,670 shares in the last quarter. Finally, Quarry LP grew its stake in shares of ScanSource by 344.3% in the first quarter. Quarry LP now owns 3,541 shares of the industrial products company’s stock worth $120,000 after purchasing an additional 2,744 shares in the last quarter. 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.