ScanSource CEO sells over $3.2 million in company stock By Investing.com

Michael L. Baur, the CEO and Chairman of the Board of ScanSource , Inc. (NASDAQ:), a leading provider of technology products and solutions, has sold a significant portion of his company stock, transactions filed with the Securities and Exchange Commission reveal. Over a series of transactions, Baur sold shares totaling over $3.2 million.

The sales occurred between July 5th and July 9th, with prices per share ranging from $41.71 to $43.31. On July 5th, Baur sold 10,865 shares at an average price of $42.10 and another 8,032 shares at an average price of $43.31. Subsequent sales on July 8th saw 34,203 shares sold at an average price of $42.49. The final sales on July 9th included a smaller batch of 464 shares at an average price of $41.71 and 22,737 shares at an average price of $42.13.

In addition to the sales, the CEO also acquired shares through the exercise of stock options on the same dates. On July 5th, he acquired 18,897 shares at a set price of $41.13 per share. The July 8th transactions included the acquisition of 34,203 shares, and on July 9th, Baur exercised options for another 23,201 shares, all at the same price of $41.13 per share. The total value for these option exercises amounted to $3,138,260.

It’s worth noting that these transactions were made under a pre-arranged trading plan known as a Rule 10b5-1 Sales Plan, which was adopted by Baur on September 1, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of trading on insider information.

Investors often monitor insider buying and selling as an indicator of a company insider’s belief in the company’s future prospects. Transactions by high-level executives can provide valuable insights, although they do not necessarily predict future stock movements.

ScanSource, headquartered in Greenville, South Carolina, operates in the wholesale distribution of computer and peripheral equipment and software, serving a diverse range of customers across the technology sector.

In other recent news, ScanSource, Inc. has reported a mixed bag of results for its third quarter. The company experienced a 15% decline in net sales for its hardware business due to reduced demand, but was able to maintain strong margins and robust free cash flow. On the other hand, the Intelisys segment of the company saw a 7% year-over-year increase in end user billings, reaching an annualized $2.68 billion, indicating growth in their CCaaS and UCaaS offerings.

ScanSource has announced a $100 million share repurchase authorization, demonstrating confidence in its future growth. The company is also planning to expand its agency channel, despite potential macroeconomic uncertainties and the potential for channel conflict. The leadership remains cautiously optimistic for growth in certain hardware segments.

In addition, the company is investing in talent, training, and tools to support its growth as a technology services distributor. These recent developments reflect ScanSource’s strategic focus on prioritizing Intelisys and maintaining strong free cash flow for the fiscal year 2024.

InvestingPro Insights

Amid the news of CEO Michael L. Baur’s recent stock transactions, potential and current investors in ScanSource, Inc. (NASDAQ:SCSC) may find additional context in the company’s financial metrics and market performance. According to InvestingPro, ScanSource is trading at a low revenue valuation multiple, which could signal an attractive entry point for value-oriented investors. This aligns with the company’s price-to-book ratio of 1.09, suggesting that the stock may be reasonably valued relative to its assets.

Despite recent sales declines, with a revenue decrease of 8.99% over the last twelve months as of Q3 2024, ScanSource is anticipated to remain profitable this year. This is corroborated by a positive return on assets of 4.24%, reflecting the company’s ability to generate earnings from its asset base. Additionally, the InvestingPro data shows a market capitalization of $1050M USD and a P/E ratio of 13.12, which may appeal to investors looking for potentially undervalized opportunities in the technology distribution sector.

For those seeking further insights, InvestingPro offers additional tips that may guide investment decisions. Notably, the RSI suggests the stock is currently in oversold territory, and the company’s liquid assets exceed its short-term obligations, indicating a solid liquidity position. For a comprehensive list of insights, there are 11 additional InvestingPro Tips available, which can be accessed with a subscription. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a deeper dive into ScanSource’s financial health and future prospects.

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