ScanSource (NASDAQ:SCSC) Shares Gap Down Following Weak Earnings

ScanSource, Inc. (NASDAQ:SCSC) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $49.99, but opened at $47.83. ScanSource shares last traded at $45.16, with a volume of 22,913 shares traded.

The industrial products company reported $0.85 earnings per share for the quarter, missing the consensus estimate of $0.89 by ($0.04). ScanSource had a net margin of 2.49% and a return on equity of 8.53%. During the same quarter in the prior year, the business posted $0.85 EPS.

Insider Buying and Selling

In related news, CEO Michael L. Baur sold 15,081 shares of the business’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $49.57, for a total transaction of $747,565.17. Following the sale, the chief executive officer now directly owns 177,760 shares in the company, valued at approximately $8,811,563.20. The trade was a 7.82 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Brandy Ford sold 1,845 shares of the stock in a transaction dated Thursday, December 19th. The stock was sold at an average price of $49.38, for a total value of $91,106.10. Following the sale, the chief accounting officer now directly owns 9,506 shares in the company, valued at $469,406.28. This trade represents a 16.25 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 54,855 shares of company stock valued at $2,702,949. 4.20% of the stock is owned by insiders.

Institutional Investors Weigh In On ScanSource

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Squarepoint Ops LLC grew its stake in ScanSource by 93.2% during the second quarter. Squarepoint Ops LLC now owns 30,862 shares of the industrial products company’s stock valued at $1,367,000 after acquiring an additional 14,892 shares in the last quarter. Millennium Management LLC grew its position in shares of ScanSource by 2,640.7% during the 2nd quarter. Millennium Management LLC now owns 136,266 shares of the industrial products company’s stock valued at $6,038,000 after purchasing an additional 131,294 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of ScanSource by 3.4% in the second quarter. The Manufacturers Life Insurance Company now owns 9,440 shares of the industrial products company’s stock worth $418,000 after purchasing an additional 308 shares during the period. Mackenzie Financial Corp raised its position in shares of ScanSource by 379.1% in the second quarter. Mackenzie Financial Corp now owns 40,592 shares of the industrial products company’s stock worth $1,799,000 after buying an additional 32,120 shares in the last quarter. Finally, SG Americas Securities LLC boosted its stake in ScanSource by 9.7% during the third quarter. SG Americas Securities LLC now owns 6,857 shares of the industrial products company’s stock valued at $329,000 after buying an additional 608 shares during the period. 97.91% of the stock is currently owned by institutional investors.

ScanSource Price Performance

The business has a 50 day simple moving average of $49.69 and a two-hundred day simple moving average of $48.57. The firm has a market capitalization of $996.87 million, a P/E ratio of 13.41, a price-to-earnings-growth ratio of 1.42 and a beta of 1.45. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.27 and a current ratio of 2.03.

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.