ScanSource (NASDAQ:SCSC) Shares Gap Down on Disappointing Earnings

ScanSource, Inc. (NASDAQ:SCSC) shares gapped down prior to trading 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 period in the prior year, the firm posted $0.85 EPS.

Insider Transactions at ScanSource

In related news, CAO Brandy Ford sold 1,845 shares of ScanSource stock in a transaction that occurred on 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 owns 9,506 shares of the company’s stock, valued at approximately $469,406.28. This trade represents a 16.25 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Michael L. Baur sold 15,081 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $49.57, for a total value of $747,565.17. Following the transaction, the chief executive officer now directly owns 177,760 shares of the company’s stock, valued at approximately $8,811,563.20. This trade represents a 7.82 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 54,855 shares of company stock valued at $2,702,949 over the last quarter. Corporate insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On ScanSource

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC bought a new position in shares of ScanSource in the 4th quarter valued at about $807,000. Empowered Funds LLC grew its stake in ScanSource by 5.1% in the fourth quarter. Empowered Funds LLC now owns 136,305 shares of the industrial products company’s stock valued at $6,468,000 after purchasing an additional 6,592 shares in the last quarter. RHS Financial LLC increased its position in shares of ScanSource by 30.0% during the 4th quarter. RHS Financial LLC now owns 5,981 shares of the industrial products company’s stock worth $284,000 after purchasing an additional 1,380 shares during the last quarter. Exchange Traded Concepts LLC raised its stake in shares of ScanSource by 5.6% during the 4th quarter. Exchange Traded Concepts LLC now owns 21,519 shares of the industrial products company’s stock worth $1,021,000 after purchasing an additional 1,132 shares in the last quarter. Finally, Ritholtz Wealth Management boosted its holdings in shares of ScanSource by 63.5% in the 4th quarter. Ritholtz Wealth Management now owns 15,013 shares of the industrial products company’s stock valued at $712,000 after buying an additional 5,830 shares during the last quarter. 97.91% of the stock is owned by institutional investors.

ScanSource Stock Down 8.6 %

The company has a debt-to-equity ratio of 0.15, a current ratio of 2.03 and a quick ratio of 1.27. The firm’s 50 day moving average is $50.02 and its two-hundred day moving average is $48.64. The firm has a market capitalization of $1.09 billion, a P/E ratio of 14.70, a PEG ratio of 1.46 and a beta of 1.45.

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.