Investment analysts at StockNews.com have recently taken on ScanSource (NASDAQ:SCSC) and assumed coverage on its shares, offering a “hold” rating in a report that was released last Thursday. The industrial products company’s stock opened at $28.67 on Thursday with a 1 year low of $25.75 and a 1 year high of $40.25. With a current ratio of 2.12, quick ratio of 1.11 and debt-to-equity ratio of 0.35, ScanSource seems to be in a healthy financial position that suggests stability and longevity.
ScanSource is primarily focused on the development and provision of technology products and services, with three main operating segments namely Worldwide Barcode, Networking & Security and Worldwide Communications & Services segments. Its enterprise mobile computing facilitates organizations to manage their operations from anywhere while enhancing customer experience; cyber security mitigates risks associated with unauthorized access while managing business data; automatic identification and data capture deploys technologies such as barcode scanners, RFID devices and handheld computers for businesses; point-of-sale facilitates customer transactions quickly and more conveniently; electronic physical security enhances safety systems for commercial properties, industrial facilities and homes while 3D printing assists organizations bring new solutions to market more quickly than ever before.
In the latest insider trading news surrounding ScanSource’s stock, John Charles Eldh sold 2,500 shares in one transaction last month – selling them at an average price of $29.44 per share which amounted to approximately $73,600 USD in total transaction value. While this is not out of the ordinary considering that insiders routinely sell- especially after long holding periods – it may raise some questions about his confidence or lack thereof concerning the company’s future.
Currently boasting a market capitalization of $713.88 million USD with a P/E ratio standing at an invitingly low level (8.05), indicative perhaps of getting good results from shelling out $1 now for a promise of $8 in the future. This sentiment is partly supported by the PEG ratio which stands at 0.71 representing more growth per dollar spent.
To conclude, ScanSource shows great potential for a long-term investment. It continually evolves and updates its products and services, making it able to effectively remain competitive within their various industries. Furthermore, while there are questions about certain insider trading activity, the company’s stable financial position suggests a strong foundation for an otherwise reliable investment opportunity.
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ScanSource Reports Strong Q1 Earnings Results and Attracts Institutional Investment Confidence
ScanSource Reports Strong Q1 Earnings Results, Attracts Institutional Investment
ScanSource (NASDAQ:SCSC), leading provider of technology products and solutions reported its quarterly earnings on Tuesday, May 9th. The report showed a notable rise in revenue for the quarter at $885.50 million. This was a significant increase compared to estimates provided by industry analysts which stood at $864.33 million. The industrial products company also posted a healthy return on equity of 12% and net margin of 2%. Furthermore, earnings per share (EPS) recorded an impressive $0.05 above the consensus estimate at $0.96.
Sell-side analysts predict that ScanSource will continue to perform well with a projected EPS of 4.03 this fiscal year. These results show strength in the company’s operations across various markets and industries.
The performance report has attracted institutional investment as evidenced by recent changes to their positions in the company from point72 Hong Kong Ltd buying a stake towards the end of the second quarter valued at approximately $27,000 while Mutual of America Capital Management LLC boosted its stake by 18.5%.
These moves indicate confidence in ScanSource’s ability to deliver value and growth both short-term, and long-term positive gains to stakeholders.
Furthermore, looking back at the past years’ reports indicates consistency in growing revenues YoY while improving profitability over time, making ScanSource a resilient player in an ever-changing market with an expanding customer base.
Overall, ScanSource is proving to be a potential cut above amongst competitors within its market segments with shareholders set to benefit significantly from anticipated future growth prospects while taking firm steps towards achieving set financial objectives this financial year.
References
Marugame Genichiro-Investor Relations (n.d.). Retrieved July 14th,2021 from https://www.scansource.com/investor-relations#financial-data
