ScanSource (NASDAQ:SCSC) Reaches New 12-Month High – Should You Buy?

ScanSource, Inc. (NASDAQ:SCSC) shares hit a new 52-week high on Tuesday . The stock traded as high as $48.73 and last traded at $48.8350, with a volume of 2125 shares trading hands. The stock had previously closed at $48.15.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on SCSC. Zacks Research raised shares of ScanSource from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 7th. Weiss Ratings raised shares of ScanSource from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 29th. Finally, Wall Street Zen raised shares of ScanSource from a “hold” rating to a “buy” rating in a research report on Saturday. Three analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $43.00.

ScanSource Price Performance

The company has a quick ratio of 1.20, a current ratio of 1.86 and a debt-to-equity ratio of 0.11. The company’s 50 day moving average is $41.53 and its 200 day moving average is $39.97. The firm has a market capitalization of $979.36 million, a price-to-earnings ratio of 14.58, a P/E/G ratio of 0.80 and a beta of 1.30.

ScanSource (NASDAQ:SCSC) last released its quarterly earnings results on Thursday, May 7th. The industrial products company reported $0.94 EPS for the quarter, beating the consensus estimate of $0.91 by $0.03. ScanSource had a net margin of 2.38% and a return on equity of 9.35%. The business had revenue of $758.59 million for the quarter, compared to the consensus estimate of $738.55 million. During the same period in the prior year, the company posted $0.86 earnings per share. ScanSource’s revenue was up 8.8% compared to the same quarter last year. On average, equities research analysts anticipate that ScanSource, Inc. will post 3.9 earnings per share for the current fiscal year.

Insider Activity at ScanSource

In related news, CEO Michael L. Baur sold 21,173 shares of the company’s stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $35.76, for a total value of $757,146.48. Following the transaction, the chief executive officer directly owned 161,339 shares in the company, valued at approximately $5,769,482.64. This represents a 11.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 3.18% of the company’s stock.

Hedge Funds Weigh In On ScanSource

Several institutional investors and hedge funds have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of ScanSource by 2.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,859 shares of the industrial products company’s stock valued at $471,000 after acquiring an additional 295 shares in the last quarter. Royce & Associates LP grew its holdings in shares of ScanSource by 1.7% during the 4th quarter. Royce & Associates LP now owns 26,088 shares of the industrial products company’s stock worth $1,019,000 after purchasing an additional 433 shares in the last quarter. Summit Global Investments grew its holdings in shares of ScanSource by 3.3% during the 4th quarter. Summit Global Investments now owns 14,177 shares of the industrial products company’s stock worth $554,000 after purchasing an additional 451 shares in the last quarter. WINTON GROUP Ltd grew its holdings in shares of ScanSource by 2.0% during the 4th quarter. WINTON GROUP Ltd now owns 26,020 shares of the industrial products company’s stock worth $1,016,000 after purchasing an additional 510 shares in the last quarter. Finally, Franklin Resources Inc. grew its holdings in shares of ScanSource by 1.6% during the 3rd quarter. Franklin Resources Inc. now owns 36,424 shares of the industrial products company’s stock worth $1,602,000 after purchasing an additional 567 shares in the last quarter. 97.91% of the stock is currently owned by institutional investors and hedge funds.

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.