ScanSource (NASDAQ:SCSC) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of ScanSource (NASDAQ:SCSC) from a hold rating to a strong sell rating in a research note issued to investors on Monday,Zacks.com reports.

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

ScanSource Stock Performance

Shares of NASDAQ SCSC opened at $34.67 on Monday. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.22 and a current ratio of 1.96. The stock has a 50 day moving average price of $40.58 and a 200 day moving average price of $41.67. The stock has a market capitalization of $744.71 million, a PE ratio of 10.64, a price-to-earnings-growth ratio of 0.62 and a beta of 1.28. ScanSource has a 52 week low of $28.75 and a 52 week high of $46.25.

ScanSource (NASDAQ:SCSC) last announced its quarterly earnings data on Thursday, February 5th. 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 company had revenue of $766.51 million for the quarter, compared to the consensus estimate of $782.46 million. ScanSource had a return on equity of 9.35% and a net margin of 2.44%.The company’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.85 EPS. Analysts predict that ScanSource will post 3.33 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Michael L. Baur sold 9,459 shares of ScanSource stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $41.42, for a total transaction of $391,791.78. Following the sale, the chief executive officer directly owned 182,512 shares of the company’s stock, valued at approximately $7,559,647.04. The trade was a 4.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Stephen Jones sold 5,020 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $42.30, for a total transaction 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 SEC filing for this sale provides additional information. Insiders 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 Trading of ScanSource

A number of hedge funds have recently added to or reduced their stakes in the stock. Canada Pension Plan Investment Board acquired a new position in shares of ScanSource during the second quarter worth $25,000. CWM LLC increased its holdings in ScanSource by 159.6% in the 3rd quarter. CWM LLC now owns 1,874 shares of the industrial products company’s stock worth $82,000 after purchasing an additional 1,152 shares in the last quarter. Osaic Holdings Inc. increased its holdings in ScanSource by 400.5% in the 2nd 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. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in ScanSource by 22.3% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,879 shares of the industrial products company’s stock valued at $120,000 after purchasing an additional 524 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its stake in shares of ScanSource by 672.0% during the second quarter. Tower Research Capital LLC TRC now owns 4,632 shares of the industrial products company’s stock valued at $194,000 after purchasing an additional 4,032 shares in the last quarter. Institutional investors and hedge funds own 97.91% of the company’s stock.

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.