ScanSource (NASDAQ:SCSC) Reaches New 12-Month High – Still a Buy?

ScanSource, Inc. (NASDAQ:SCSC) shares hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $53.81 and last traded at $53.61, with a volume of 135472 shares trading hands. The stock had previously closed at $51.62.

Analyst Upgrades and Downgrades

Separately, Raymond James downgraded ScanSource from an “outperform” rating to a “market perform” rating in a research note on Thursday, August 15th.

ScanSource Price Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.27 and a current ratio of 2.03. The firm has a fifty day simple moving average of $49.00 and a two-hundred day simple moving average of $47.63. The firm has a market cap of $1.25 billion, a PE ratio of 16.85, a PEG ratio of 1.51 and a beta of 1.44.

ScanSource (NASDAQ:SCSC) last announced its quarterly earnings results on Thursday, November 7th. The industrial products company reported $0.84 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.07. ScanSource had a net margin of 2.49% and a return on equity of 8.53%. The company had revenue of $775.58 million for the quarter, compared to analysts’ expectations of $774.90 million. During the same quarter in the previous year, the business posted $0.74 earnings per share. ScanSource’s quarterly revenue was down 11.5% on a year-over-year basis. Equities analysts predict that ScanSource, Inc. will post 3.51 EPS for the current fiscal year.

Insider Activity

In other news, CEO Michael L. Baur sold 29,617 shares of the company’s stock in a transaction dated Thursday, November 14th. The shares were sold at an average price of $49.20, for a total value of $1,457,156.40. Following the transaction, the chief executive officer now directly owns 177,760 shares in the company, valued at approximately $8,745,792. This represents a 14.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders sold 53,010 shares of company stock valued at $2,611,843 in the last ninety days. Insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On ScanSource

Several hedge funds have recently made changes to their positions in SCSC. Pacer Advisors Inc. lifted its stake in ScanSource by 54.2% in the second quarter. Pacer Advisors Inc. now owns 2,319,469 shares of the industrial products company’s stock worth $102,776,000 after acquiring an additional 815,240 shares during the period. American Century Companies Inc. boosted its stake in shares of ScanSource by 75.5% during the second quarter. American Century Companies Inc. now owns 521,127 shares of the industrial products company’s stock valued at $23,091,000 after purchasing an additional 224,160 shares in the last quarter. Millennium Management LLC raised its stake in ScanSource by 2,640.7% in the second quarter. Millennium Management LLC now owns 136,266 shares of the industrial products company’s stock worth $6,038,000 after buying an additional 131,294 shares in the last quarter. Wasatch Advisors LP increased its holdings in shares of ScanSource by 13.2% in the 3rd quarter. Wasatch Advisors LP now owns 1,097,992 shares of the industrial products company’s stock valued at $52,737,000 after acquiring an additional 127,883 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of ScanSource by 2.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,983,625 shares of the industrial products company’s stock worth $87,894,000 after acquiring an additional 39,533 shares in the last quarter. 97.91% of the stock is currently owned by hedge funds and other institutional investors.

ScanSource Company Profile

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.