GREENVILLE, SC – Scansource, Inc. (NASDAQ:SCSC) has reported a significant stock sale by Stephen Jones, the company's Senior Executive Vice President and Chief Financial Officer. According to the latest SEC filing, Jones sold a total of 8,500 shares of Scansource stock, valued at over $406,000.
The transactions, which took place on June 3, 2024, were executed in two separate batches. The first sale involved 3,127 shares at a weighted average price of $47.07, with individual prices ranging from $46.81 to $47.53. The second sale consisted of 5,373 shares at a weighted average price of $48.18, with prices varying from $47.99 to $48.42.
These sales were conducted under a Rule 10b5-1 Sales Plan, which Jones had adopted on February 29, 2024. Such plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.
Following the sales, Jones still retains a substantial interest in the company with 53,352 shares of Scansource common stock, indicating a continued investment in the company's future.
Investors often keep a close eye on insider transactions as they can provide valuable insights into the company's financial health and the confidence level of its senior executives. The recent sale by Scansource's CFO will likely be of interest to current and potential shareholders as they assess their investment strategies.
Scansource, Inc., headquartered in Greenville, South Carolina, operates as a wholesale distributor of specialty technology products, focusing on point-of-sale (POS) and barcode, communications, and physical security solutions.
InvestingPro Insights
Amidst the recent insider trading activity at Scansource, Inc. (NASDAQ:SCSC), investors are keen to understand the financial underpinnings that may influence such decisions. InvestingPro data reveals a mixed financial landscape for the company. Scansource is currently trading at a price-to-earnings (P/E) ratio of 14.68, which is relatively modest and could suggest the stock is undervalued. This aligns with the company's strong free cash flow yield, as indicated by one of the InvestingPro Tips, which could be a positive signal for value investors.
However, it is important to note that analysts have revised their earnings downwards for the upcoming period, and anticipate a sales decline in the current year, which might raise concerns about the company's near-term growth prospects. Furthermore, the revenue has seen a decline of 8.99% over the last twelve months as of Q3 2024, which might have contributed to the decision-making process of the company's CFO.
From a liquidity standpoint, Scansource appears to be in a stable position with liquid assets exceeding short-term obligations, which is reassuring for investors worried about the company's ability to meet its immediate financial liabilities. Additionally, Scansource has delivered a high return over the last year with a 59.05% price total return, which could be indicative of strong market confidence in the company's long-term value.
For those considering adding Scansource to their portfolio, or current shareholders looking to reassess their holdings, additional InvestingPro Tips are available. These tips provide deeper insights into the company's financial health and market position. Interested readers can utilize coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 14 exclusive InvestingPro Tips for Scansource, Inc.
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