ScanSource (SCSC) Lifted to Buy at Zacks Investment Research

ScanSource (NASDAQ:SCSC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The brokerage presently has a $46.00 price target on the industrial products company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 8.85% from the stock’s previous close.

According to Zacks, “ScanSource, Inc. serves North America as a value-added distributor of specialty technologies, including automatic identification and point-of-sale products, and business telephone products. Serving only the value added reseller, ScanSource is committed to growing specialty technology markets by strengthening and enlarging the value added reseller channel. ScanSource’s commitment to value added resellers includes offering a broad product selection, competitive pricing, fast delivery, technical support, sales training, customer financing and qualified leads. “

A number of other research firms have also weighed in on SCSC. BidaskClub upgraded ScanSource from a “hold” rating to a “buy” rating in a report on Thursday, September 6th. ValuEngine upgraded ScanSource from a “sell” rating to a “hold” rating in a report on Tuesday, October 23rd. Finally, Raymond James raised their target price on ScanSource from $44.00 to $47.00 and gave the company a “buy” rating in a report on Wednesday, August 29th. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $45.33.

Shares of ScanSource stock opened at $42.26 on Friday. The company has a quick ratio of 1.08, a current ratio of 1.92 and a debt-to-equity ratio of 0.29. ScanSource has a 52 week low of $31.40 and a 52 week high of $44.30. The company has a market capitalization of $1.07 billion, a price-to-earnings ratio of 13.59 and a beta of 0.72.

ScanSource (NASDAQ:SCSC) last posted its earnings results on Tuesday, November 6th. The industrial products company reported $0.89 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.88 by $0.01. ScanSource had a return on equity of 9.60% and a net margin of 1.11%. The company had revenue of $972.90 million for the quarter, compared to analyst estimates of $976.97 million. During the same quarter last year, the company earned $0.76 earnings per share. The company’s revenue for the quarter was up 5.2% on a year-over-year basis. As a group, research analysts predict that ScanSource will post 3.56 EPS for the current year.

In related news, CEO Michael L. Baur sold 13,747 shares of ScanSource stock in a transaction on Wednesday, August 22nd. The stock was sold at an average price of $44.00, for a total transaction of $604,868.00. Following the sale, the chief executive officer now directly owns 49,446 shares in the company, valued at $2,175,624. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Gerald Lyons sold 600 shares of ScanSource stock in a transaction on Tuesday, August 21st. The stock was sold at an average price of $44.00, for a total value of $26,400.00. Following the sale, the chief financial officer now owns 12,937 shares in the company, valued at $569,228. The disclosure for this sale can be found here. 2.35% of the stock is owned by company insiders.

Institutional investors have recently modified their holdings of the stock. Rehmann Capital Advisory Group bought a new stake in ScanSource during the second quarter worth $161,000. ClariVest Asset Management LLC bought a new stake in ScanSource during the second quarter worth $201,000. Palouse Capital Management Inc. bought a new stake in ScanSource during the second quarter worth $205,000. First Citizens Bank & Trust Co. bought a new stake in ScanSource during the third quarter worth $209,000. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS bought a new stake in ScanSource during the second quarter worth $218,000. Institutional investors and hedge funds own 94.84% of the company’s stock.

ScanSource Company Profile

ScanSource, Inc distributes technology products and solutions in North America, Latin America, and Europe. It operates in two segments, Worldwide Barcode, Networking & Security (WW Barcode, Networking & Security); and Worldwide Communications & Services (WW Communications & Services).

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