Wall Street analysts have upgraded shares of ScanSource, Inc. (NASDAQ:SCSC) from a hold to a buy rating. This change was announced in a research note from Wall Street Zen issued on Saturday. Additionally, Northcoast Research promoted ScanSource from a neutral rating to a buy rating and set a price target of $42.00 per share in its report dated May 6, 2023.
Quarterly Earnings Performance
On May 8, 2023, ScanSource released its earnings report for the previous quarter, revealing an earnings per share (EPS) of $0.86. This figure surpassed analysts’ expectations of $0.77 by $0.09. Despite this positive outcome, the company experienced a year-over-year revenue decline of 6.3%, reporting total revenue of $704.23 million compared to the anticipated $809.17 million. Last year, during the same quarter, ScanSource recorded an EPS of $0.69.
The industrial products company achieved a net margin of 2.27% and a return on equity of 8.96%. Analysts forecast that ScanSource will achieve an EPS of $3.33 for the current fiscal year.
Insider Transactions and Institutional Holdings
In related news, Rachel Hayden, Executive Vice President of ScanSource, sold 6,738 shares on June 20, 2023, at an average price of $41.27, totaling approximately $278,077.26. Following this transaction, Hayden retained 13,174 shares valued at around $543,690.98, marking a 33.84% decrease in her holdings. This sale was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Institutional investors and hedge funds have also adjusted their stakes in ScanSource. Exchange Traded Concepts LLC increased its holdings by 6.1% in the second quarter, owning 30,526 shares valued at $1,276,000 after acquiring an additional 1,753 shares. Additionally, Voya Investment Management LLC raised its holdings by 46.0% in the first quarter, owning 40,023 shares valued at $1,361,000 after purchasing 12,603 extra shares.
Other institutional investors, such as First Hawaiian Bank and Inspire Investing LLC, also increased their positions significantly during the same quarter. Currently, institutional investors own 97.91% of ScanSource’s stock.
ScanSource operates as a distributor of technology products and solutions across the United States, Canada, and Brazil. The company functions through two primary segments: Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment focuses on a diverse portfolio that includes enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, and cybersecurity.
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