ScanSource (NASDAQ:SCSC) Sees Strong Trading Volume – Here’s What Happened

ScanSource, Inc. (NASDAQ:SCSC) shares saw strong trading volume on Wednesday. Approximately 289,145 shares changed hands during mid-day trading, an increase of 20% from the average daily volume of 241,259 shares. The stock last traded at $56.7790 and had previously closed at $56.74.

ScanSource News Summary

Here are the key news stories impacting ScanSource this week:

• Positive Sentiment: Revenue rose 30.1% year over year to $962.3 million, exceeding analyst estimates of about $860.4 million. ScanSource also forecast fiscal 2027 revenue of $3.8 billion–$4.0 billion, above the roughly $3.7 billion consensus. Article
• Negative Sentiment: Adjusted earnings of $0.86 per share missed the $1.12 estimate and fell from $1.06 a year earlier. The earnings miss, despite higher sales, points to pressure on profitability and is a key likely reason for the stock’s decline. Article
• Negative Sentiment: Shares fell below their 200-day moving average following the disappointing earnings report, a potentially negative technical signal for investors. Article

Analysts Set New Price Targets

A number of research firms have weighed in on SCSC. Zacks Research cut shares of ScanSource from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 20th. Wall Street Zen upgraded shares of ScanSource from a “buy” rating to a “strong-buy” rating in a research report on Sunday, October 25th. Weiss Ratings raised shares of ScanSource from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Barclays boosted their target price on shares of ScanSource from $43.00 to $51.00 and gave the stock an “equal weight” rating in a research note on Monday, October 12th. Finally, Northcoast Research downgraded shares of ScanSource from a “buy” rating to a “neutral” rating in a research report on Monday, August 17th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $51.00.

ScanSource Stock Down 6.3%

The company has a debt-to-equity ratio of 0.11, a current ratio of 1.76 and a quick ratio of 1.15. The business’s 50 day simple moving average is $58.51 and its 200 day simple moving average is $48.09. The company has a market capitalization of $860.55 million, a PE ratio of 11.54, a P/E/G ratio of 0.78 and a beta of 1.28.

ScanSource (NASDAQ:SCSC) last posted its earnings results on Thursday, November 5th. The industrial products company reported $0.86 EPS for the quarter, missing analysts’ consensus estimates of $1.12 by ($0.26). ScanSource had a net margin of 2.44% and a return on equity of 10.10%. The company had revenue of $962.29 million during the quarter, compared to analyst estimates of $860.35 million. During the same period in the previous year, the company earned $1.06 EPS. The company’s quarterly revenue was up 30.1% compared to the same quarter last year. As a group, analysts anticipate that ScanSource, Inc. will post 4.90 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Stephen Jones sold 10,000 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $56.76, for a total transaction of $567,600.00. Following the completion of the transaction, the chief financial officer directly owned 87,421 shares of the company’s stock, valued at approximately $4,962,015.96. This represents a 10.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Brandy Ford sold 5,293 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $57.43, for a total transaction of $303,976.99. Following the completion of the transaction, the chief accounting officer owned 9,907 shares in the company, valued at $568,959.01. This represents a 34.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 95,632 shares of company stock worth $5,484,582 in the last quarter. Company insiders own 3.18% of the company’s stock.

Hedge Funds Weigh In On ScanSource

A number of hedge funds and other institutional investors have recently made changes to their positions in SCSC. BlackRock Inc. bought a new stake in shares of ScanSource during the 2nd quarter worth $200,140,000. Pzena Investment Management LLC acquired a new position in shares of ScanSource in the 2nd quarter worth $57,807,000. Bank of New York Mellon Corp acquired a new position in shares of ScanSource in the 2nd quarter worth $7,036,000. Pacer Advisors Inc. raised its position in shares of ScanSource by 69.7% during the first quarter. Pacer Advisors Inc. now owns 130,788 shares of the industrial products company’s stock worth $4,748,000 after purchasing an additional 53,702 shares during the period. Finally, Empowered Funds LLC raised its position in shares of ScanSource by 10.1% during the first quarter. Empowered Funds LLC now owns 128,473 shares of the industrial products company’s stock worth $4,664,000 after purchasing an additional 11,767 shares during the period. Hedge funds and other institutional investors own 97.91% of the company’s stock.

ScanSource Company Profile

ScanSource, Inc (NASDAQ: SCSC) is a technology distributor that connects manufacturers of business technology products with value-added resellers, systems integrators and other channel partners. The company provides products, services and expertise intended to help partners design, deploy and support technology solutions for business customers.

ScanSource’s offerings include point-of-sale and payment technology, barcode scanners, mobile computing devices, networking equipment, cybersecurity products, communications systems and cloud-based services.