ScanSource (NASDAQ:SCSC) Downgraded to Strong Sell Rating by Zacks Research

ScanSource (NASDAQ:SCSC) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

A number of other equities analysts also recently commented on SCSC. Wall Street Zen downgraded ScanSource from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Weiss Ratings reiterated a “hold (c)” rating on shares of ScanSource in a research note on Monday, December 29th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, ScanSource currently has a consensus rating of “Hold” and an average target price of $42.50.

ScanSource Trading Down 2.3%

Shares of ScanSource stock opened at $36.71 on Monday. The company has a current ratio of 1.96, a quick ratio of 1.22 and a debt-to-equity ratio of 0.11. ScanSource has a twelve month low of $28.75 and a twelve month high of $46.25. The firm has a market capitalization of $788.53 million, a PE ratio of 11.26, a P/E/G ratio of 0.64 and a beta of 1.28. The firm’s 50-day moving average price is $40.73 and its 200 day moving average price is $41.72.

ScanSource (NASDAQ:SCSC) last posted its quarterly earnings results 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). ScanSource had a net margin of 2.44% and a return on equity of 9.35%. The company had revenue of $766.51 million during the quarter, compared to analysts’ expectations of $782.46 million. During the same quarter last year, the company earned $0.85 earnings per share. ScanSource’s revenue for the quarter was up 2.5% on a year-over-year basis. On average, sell-side analysts predict that ScanSource will post 3.33 EPS for the current fiscal year.

Insider Buying and Selling at ScanSource

In related news, CEO Michael L. Baur sold 9,459 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $41.42, for a total value of $391,791.78. Following the transaction, 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 sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Stephen Jones sold 5,020 shares of the firm’s 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 transaction, the chief financial officer owned 83,326 shares in the company, valued at approximately $3,524,689.80. This trade represents a 5.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 25,020 shares of company stock valued at $1,035,669 over the last three months. Corporate insiders own 3.18% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SCSC. Canada Pension Plan Investment Board acquired a new stake in shares of ScanSource during the second quarter valued at about $25,000. CWM LLC raised its position in shares of ScanSource by 159.6% in the 3rd quarter. CWM LLC now owns 1,874 shares of the industrial products company’s stock valued at $82,000 after purchasing an additional 1,152 shares in the last quarter. Osaic Holdings Inc. boosted its stake in shares of ScanSource by 400.5% during the 2nd quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company’s stock valued at $87,000 after buying an additional 1,670 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of ScanSource by 22.3% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,879 shares of the industrial products company’s stock worth $120,000 after buying an additional 524 shares in the last quarter. Finally, Tower Research Capital LLC TRC increased its stake in shares of ScanSource by 672.0% in the second quarter. Tower Research Capital LLC TRC now owns 4,632 shares of the industrial products company’s stock worth $194,000 after buying an additional 4,032 shares during the last quarter. 97.91% of the stock is owned by institutional investors and hedge funds.

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.