In a recent transaction, Peter C. Browning, a director of ScanSource , Inc. (NASDAQ:SCSC), a leading provider of technology products and solutions, has sold a significant number of shares in the company. The transaction, which took place on May 10, 2024, involved the sale of 7,490 shares at an average price of $46.44 per share, totaling approximately $347,835.
The shares were sold in multiple transactions with prices ranging from $46.59 to $46.80. Following the sale, Browning retains ownership of 22,759 shares of ScanSource common stock. Details of the transactions were made public through a Form 4 filing with the Securities and Exchange Commission on May 13, 2024.
ScanSource has been a key player in the wholesale distribution of computer and peripheral equipment and software, and such transactions by top executives often draw attention from investors and market analysts.
For those interested in the specifics of the transactions, Browning has agreed to provide full information regarding the number of shares sold at each separate price upon request. This sale represents a notable change in Browning's stake in the company, although the reasons behind the transaction have not been disclosed.
Investors and stakeholders in ScanSource, Inc. continue to monitor insider transactions as they can provide valuable insights into the company's performance and executive perspectives.
InvestingPro Insights
In light of the recent insider transaction at ScanSource, Inc. (NASDAQ:SCSC), it's important to consider the company's financial health and market performance. According to real-time data from InvestingPro, ScanSource has a market capitalization of approximately $1.16 billion with a P/E ratio standing at 14.63. This valuation suggests that the company is reasonably priced compared to its earnings. However, the adjusted P/E ratio for the last twelve months as of Q3 2024 is slightly higher at 16.03, reflecting changes in the company's earning power.
Investors should note that ScanSource has experienced a revenue decline of about 8.99% over the last twelve months as of Q3 2024. This contraction is echoed in the quarterly figure, with revenue shrinking by 15.01% in Q3 2024. Despite this, the company maintains a solid gross profit margin of 11.86%, which could be indicative of its ability to manage costs effectively relative to its top-line revenue.
In the context of the recent insider sale, the InvestingPro Tips provide additional insights. ScanSource is recognized for its high shareholder yield and is trading at a low revenue valuation multiple. These factors may appeal to value-oriented investors. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a stable financial position in the near term.
For those looking to delve deeper into ScanSource's financials and market performance, InvestingPro offers a comprehensive suite of additional tips. As of now, there are 16 more InvestingPro Tips available, which can be accessed through the InvestingPro platform. Readers interested in these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a more detailed perspective on the company's outlook.
Lastly, the company's stock price has shown significant growth over the last year, with a one-year price total return of 65.66%. This performance, coupled with the company trading near its 52-week high, indicates strong market confidence, which could be a factor for investors to consider when assessing the implications of insider transactions like those by Peter C. Browning.
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