ScanSource (NASDAQ:SCSC) Shares Gap Down Following Weak Earnings

ScanSource, Inc. (NASDAQ:SCSC)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $44.33, but opened at $36.94. ScanSource shares last traded at $37.68, with a volume of 81,143 shares trading hands.

The industrial products company reported $0.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.00 by ($0.20). The business had revenue of $766.51 million for the quarter, compared to analysts’ expectations of $782.46 million. ScanSource had a net margin of 2.48% and a return on equity of 9.72%. The company’s revenue was up 2.5% on a year-over-year basis. During the same period last year, the business earned $0.85 earnings per share.

Analysts Set New Price Targets

A number of research analysts recently weighed in on SCSC shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ScanSource in a research report on Monday, December 29th. Wall Street Zen downgraded ScanSource from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Finally, Zacks Research lowered ScanSource from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 21st. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $42.50.

Insider Buying and Selling at ScanSource

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

Institutional Investors Weigh In On ScanSource

Large investors have recently added to or reduced their stakes in the stock. Wasatch Advisors LP lifted its holdings in shares of ScanSource by 34.9% during the 3rd quarter. Wasatch Advisors LP now owns 1,139,573 shares of the industrial products company’s stock valued at $50,130,000 after buying an additional 294,624 shares during the period. SG Americas Securities LLC grew its holdings in shares of ScanSource by 2,835.9% in the fourth quarter. SG Americas Securities LLC now owns 283,756 shares of the industrial products company’s stock worth $11,084,000 after acquiring an additional 274,091 shares during the period. Jacobs Levy Equity Management Inc. increased its position in ScanSource by 65.6% during the third quarter. Jacobs Levy Equity Management Inc. now owns 389,915 shares of the industrial products company’s stock valued at $17,152,000 after acquiring an additional 154,518 shares during the last quarter. Jane Street Group LLC lifted its holdings in ScanSource by 148.3% in the first quarter. Jane Street Group LLC now owns 199,799 shares of the industrial products company’s stock valued at $6,795,000 after acquiring an additional 119,317 shares during the period. Finally, Teacher Retirement System of Texas lifted its holdings in ScanSource by 333.8% in the fourth quarter. Teacher Retirement System of Texas now owns 153,041 shares of the industrial products company’s stock valued at $5,978,000 after acquiring an additional 117,762 shares during the period. Institutional investors own 97.91% of the company’s stock.

ScanSource Price Performance

The firm has a 50-day simple moving average of $40.95 and a 200-day simple moving average of $41.78. The firm has a market capitalization of $797.74 million, a PE ratio of 11.33, a PEG ratio of 0.72 and a beta of 1.28. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.16 and a quick ratio of 1.32.

ScanSource Company Profile

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.