GREENVILLE, SC – Michael L. Baur, the CEO and Chair of the Board of Scansource, Inc. (NASDAQ:SCSC), a leading distributor of computer and peripheral equipment, has sold a significant portion of his company stock, according to recent SEC filings. On June 3, 2024, Baur sold a total of 9,053 shares of common stock in a range of $47.06 to $48.16, amounting to over $430,000.
The transactions were executed under a pre-arranged trading plan, known as a Rule 10b5-1 Sales Plan, which Baur adopted on September 1, 2023. These plans allow company insiders to sell shares over a determined period of time, reducing the concern of any potential insider trading accusations as the sales are scheduled in advance.
The SEC filing revealed that the first batch of 3,266 shares was sold at an average price of $47.06, with sales prices ranging from $46.82 to $47.64. The second batch consisting of 5,787 shares was sold at an average price of $48.16, with individual sales prices ranging from $47.93 to $48.28.
Following the sales, Baur still holds a substantial amount of Scansource stock, owning 118,080 shares directly after the transactions. The sales are a routine part of Baur's investment strategy, and he has committed to providing additional details regarding the number of shares sold at each price upon request by the issuer, any security holder, or the SEC staff.
Scansource investors often monitor insider transactions as they can provide insights into an executive's confidence in the company's future prospects. However, it is also not uncommon for executives to sell shares for personal financial planning or diversification reasons.
Investors and shareholders of Scansource, Inc. can access the full details of the transactions through the SEC's EDGAR database, which provides public access to insider trading reports and other financial statements.
InvestingPro Insights
Scansource, Inc. (NASDAQ:SCSC) has been navigating a challenging market landscape, as indicated by recent trends in the company's financial metrics. With a market capitalization of approximately $1.17 billion and a trailing twelve-month revenue of $3.46 billion, the company has experienced a revenue decline of about 9% from the previous year. This contraction aligns with concerns raised by analysts who anticipate a sales decline in the current year, an InvestingPro Tip that suggests a cautious outlook for the company's revenue growth.
The company's P/E ratio, a key metric for valuation, stands at 14.68, with an adjusted P/E ratio for the last twelve months as of Q3 2024 at 16.44. This valuation is complemented by a strong free cash flow yield, a positive sign for investors looking for value in their investments. Furthermore, the gross profit margin for the same period is reported at 11.86%, which, while positive, is considered weak by industry standards, as noted in another InvestingPro Tip.
Despite the revenue challenges, Scansource has demonstrated robust shareholder returns, with a 1-year price total return of 59.05%. Additionally, the company's stock price is currently at 92.84% of its 52-week high, reflecting a significant uptick in investor confidence over the past six months. These metrics suggest that while the company is facing near-term revenue headwinds, its overall financial health remains solid, with high shareholder yield and a stock price that has been resilient.
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