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

ScanSource, Inc. (NASDAQ:SCSC)’s share price gapped down prior to trading on Thursday following a dissappointing 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.

The industrial products company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.89 by ($0.04). ScanSource had a return on equity of 8.53% and a net margin of 2.49%. During the same period last year, the firm earned $0.85 earnings per share.

Insiders Place Their Bets

In other news, CEO Michael L. Baur sold 15,081 shares of ScanSource stock in a transaction 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 completion of the sale, the chief executive officer now owns 177,760 shares of the company’s stock, valued at $8,811,563.20. The trade was a 7.82 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 transaction, the chief accounting officer now owns 9,506 shares in the company, valued at $469,406.28. This trade represents a 16.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 54,855 shares of company stock valued at $2,702,949 in the last ninety days. Insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On ScanSource

A number of hedge funds have recently made changes to their positions in SCSC. Squarepoint Ops LLC raised its holdings in shares of ScanSource by 93.2% in the 2nd quarter. Squarepoint Ops LLC now owns 30,862 shares of the industrial products company’s stock worth $1,367,000 after purchasing an additional 14,892 shares during the period. Millennium Management LLC raised its holdings in ScanSource by 2,640.7% in the second quarter. Millennium Management LLC now owns 136,266 shares of the industrial products company’s stock valued at $6,038,000 after buying an additional 131,294 shares during the period. The Manufacturers Life Insurance Company lifted its position in ScanSource by 3.4% during the second quarter. The Manufacturers Life Insurance Company now owns 9,440 shares of the industrial products company’s stock valued at $418,000 after buying an additional 308 shares in the last quarter. Mackenzie Financial Corp lifted its position in ScanSource by 379.1% during the second quarter. Mackenzie Financial Corp now owns 40,592 shares of the industrial products company’s stock valued at $1,799,000 after buying an additional 32,120 shares in the last quarter. Finally, SG Americas Securities LLC grew 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 worth $329,000 after buying an additional 608 shares during the period. Institutional investors and hedge funds own 97.91% of the company’s stock.

ScanSource Stock Down 14.8 %

The firm’s 50-day moving average price is $49.88 and its 200-day moving average price is $48.60. 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 company has a market cap of $1.01 billion, a price-to-earnings ratio of 13.65, a price-to-earnings-growth 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.