ScanSource (NASDAQ:SCSC) received an upgrade from Wall Street Zen, elevating its stock rating from hold to buy in a research note published on Saturday. In a separate analysis, Northcoast Research also raised its rating on ScanSource from neutral to buy, establishing a price target of $42.00 per share on May 6, 2024. This positive outlook appears to have influenced market sentiment, with shares trading up by 0.6% in early trading.
On May 8, 2024, ScanSource announced its latest earnings results, revealing earnings per share (EPS) of $0.86. This figure surpassed analysts’ consensus estimate of $0.77 by $0.09. Despite this positive EPS, the company reported a revenue of $704.23 million for the quarter, falling short of expectations which were set at $809.17 million. Year-over-year comparisons highlight a 6.3% decline in revenue, with the previous year’s quarter yielding an EPS of $0.69.
Insider Transactions and Institutional Activity
In other developments, insider trading activity has captured attention. On June 20, 2024, Executive Vice President Rachel Hayden sold 6,738 shares of ScanSource stock at an average price of $41.27, amounting to a total transaction value of approximately $278,077.26. Following this sale, Hayden retained 13,174 shares, valued at around $543,690.98, representing a 33.84% reduction in her holdings. This transaction has been filed with the U.S. Securities and Exchange Commission (SEC), providing transparency to investors.
Recent activity from institutional investors also indicates a shift in holdings. Exchange Traded Concepts LLC increased its stake in ScanSource by 6.1% during the second quarter, acquiring an additional 1,753 shares, bringing its total to 30,526 shares valued at $1,276,000. Additionally, Voya Investment Management LLC raised its holdings by 46.0% in the first quarter, now holding 40,023 shares valued at $1,361,000 after purchasing 12,603 shares.
Other notable increases include First Hawaiian Bank, which raised its holdings by 139.9% in the first quarter, now owning 14,123 shares valued at $480,000. Inspire Investing LLC also increased its stake by 20.1%, while Strs Ohio acquired a new stake in the same quarter valued at approximately $558,000. Currently, institutional investors and hedge funds collectively own 97.91% of ScanSource’s shares.
About ScanSource
ScanSource, Inc. specializes in the distribution of technology products and solutions across the United States, Canada, and Brazil. The company operates through two segments: Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment focuses on a wide array of solutions such as enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, and cybersecurity.
Analysts continue to forecast that ScanSource will achieve earnings of $3.33 per share in the current fiscal year, reflecting ongoing interest and confidence in the company’s potential growth trajectory.
